Document:

biol-ex1028_451.htm

 

EXHIBIT 10.28

Confidential Settlement Agreement

This Confidential Settlement Agreement (this “Agreement”) is entered into as of the Effective Date (as that term is defined below) between CAO Group, Inc., a Utah corporation having a place of business at 4628 West Skyhawk Drive, West Jordan, Utah 84084 (“CAO”), and Biolase, Inc. f/k/a Biolase Technology, Inc., a Delaware corporation having a place of business at 4 Cromwell, Irvine, California 92618 (“Biolase”).  CAO and Biolase are referred to in this Agreement collectively as the “Parties” and individually as a “Party”. 

A.On April 24, 2012, CAO filed a complaint against Biolase in the United States District Court for the District of Utah, captioned CAO Group, Inc. v. Biolase Technology, Inc., Case No. 2:12-cv00388 (“the Utah Action”).   On March 7, 2018, the Utah Action was transferred to the United States District Court for the Central District of California, Southern Division and reassigned a case caption of CAO Group, Inc. v. Biolase Technology, Inc., Case No. 8:18-cv-00368 (“the California ‘368 Action”).  The operative complaint in the California ‘368 Action (Dkt. No. 57) includes Count 1 for “Patent Infringement”, Count 2 for “Business Disparagement/Injurious Falsehood – Common Law” and Count 3 for “Unfair Competition - 15 U.S.C. §1125(a))”. 

B.On January 23, 2018, CAO filed a separate action against Biolase in the United States District Court for the Central District of California, captioned CAO Group, Inc. v. Biolase Technology, Inc., Case No. 8:18-cv-00133 (“the California ‘133 Action”).  The operative complaint in the California ‘133 Action (Dkt. No. 57) includes Counts 1-4 for “Patent Infringement”. 

C.On March 21, 2018, the California ‘368 and ‘133 Actions were consolidated with all future filings to be filed only under Case No. 8:18-cv-00133 (“the Litigation”) and Case No. 8:18-cv-00368 was closed.

E.Biolase has denied any and all liability in the Litigation.

F.The Parties desire to settle the Litigation without the expenditure of further time and expense under the terms and conditions set forth below.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

	
1.
	
Definitions.  As used in this Agreement:

1.1“Previously Defined Terms” The terms “Agreement”, “CAO”, “Biolase”, “Parties”, “Party”, “the Utah Action”, “the California ‘368 Action”, “the California ‘133 Action”, and “the Litigation” shall have the meanings set out above.

1.2“Affiliate” with respect to any Party means any Person which currently or in the future controls, is controlled by, or is under common control with the Party.  The terms “controls,” “is controlled by,” or “is under common control of or with” refer to the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities (as to which ownership of at least fifty percent (50%) establishes control), or other interests, by contract, or otherwise.  For the avoidance of doubt, Dr. Densen Cao shall be considered an Affiliate of CAO for purposes of this Agreement.

 

 

	
4836-3775-3988.v1

 

 

1.3“Biolase Entities” means Biolase and its Affiliates.

1.4“Claims” means any and all claims, counterclaims, third-party claims, contribution claims, indemnity claims, demands, actions, causes of action, and all other claims of every kind and nature in law or equity, whether arising under state, federal, international or other law, which were asserted in or which arise from the same transactions or occurrences as those claims asserted in the Litigation, whether such claims are absolute or contingent, direct or indirect, known or unknown.

1.5“Effective Date” means the date on which this Agreement is fully executed by all the Parties; provided, however, that if all the Parties execute this Agreement, but less than all the Parties provide an execution date, then the Effective Date shall be the latest date provided by any of those Parties who provided an execution date.

1.6“Including” means “including without limitation”.

1.7“Licensed Patents” means (a) the Patents-in-Suit, (b) the patents and patent applications set forth on Appendix A, which is attached hereto and by this reference incorporated herein, and any other patents or patent applications of CAO or its Affiliates that include one or more claims that read on products of Biolase or its Affiliates, as previously or currently configured and sold, or any components thereof, any patents, registrations or certificates of invention that may be issued pursuant thereto and all divisionals, continuations, continuations-in-part, reissues, substitutes, renewals, reexaminations, and extensions or additions thereof, and any foreign counterparts of any of the foregoing; and (c) all current or future patent applications submitted to or patents issued by the United States Patent and Trademark Office or submitted to or issued by a foreign government, including but not limited to certificates and registrations, that share a common parent application with or that claim a priority from any of the patents or patent applications listed on Appendix A or any of the other patents or patent applications covered by (a) above, and (c) any other patents, patent applications or other intellectual property rights of CAO or its Affiliates that products of Biolase or its Affiliates, as currently configured and sold, or any extensions, updates, variations or modifications of such products that are minor in scope and consistent with current typical business practices, or which do not substantially change the features claimed in the Licensed Patents, which would, in the absence of the licenses granted herein, be subject to a claim of infringement, whether such infringement be direct or indirect, and whether such infringement be literal or under the doctrine of equivalents.

1.8“Licensed Products” means (i) the products accused of infringement in the Litigation, (ii) products of Biolase or its Affiliates as currently configured and sold, (iii) products or components of products of Biolase or its Affiliates as currently configured and sold, the manufacture, use, sale, offer for sale, or import of which, in the absence of this license agreement, would be covered by at least one claim of a Licensed Patent, (iv) products of Biolase or its Affiliates, as currently configured and sold that are made using a process or machine, the use of which, in the absence of this license agreement, would be covered by a claim of a Licensed Patent, and (v) any extensions, updates, variations or modifications of products or components of Biolase or its Affiliate covered under subdivisions (i)-(iv) that are minor in scope and consistent with current typical business practices or which do not substantially change the features claimed in the Licensed Patents.  All products manufactured by or for CAO or its Affiliates for Biolase or its Affiliates shall not be required to be expressly licensed under this Agreement due to the applicable implied licenses and/or principles of patent exhaustion.  No additional royalties will be due and payable under this Agreement for such products manufactured by or for CAO or its Affiliates for Biolase or its Affiliates.

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1.9“Manufacturing Agreement” means the form of manufacturing agreement to be entered into by and between Biolase and CAO.

1.10“Non-Patent Claims” means Count 2 for “Business Disparagement/Injurious Falsehood – Common Law” and Count 3 for “Unfair Competition - 15 U.S.C. §1125(a))” in the operative complaint in the California ‘368 Action (Dkt. No. 57).

1.11“Patent Claims” means Count 1 for “Patent Infringement” in the operative complaint in the California ‘368 Action (Dkt. No. 57) and Counts 1-4 for “Patent Infringement” in the operative complaint in the California ‘133 Action (Dkt. No. 1).

1.12“Patents-in-Suit” means U.S. Patent Nos. 7,485,116, 8,337,097, 8,834,457, 8,961,040, and 8,967,883.

1.13“Person” means any individual or any firm, association, organization, joint venture, trust, partnership, corporation, company or other collective organization or entity.

1.14“Releasees” has the meaning provided for in Section 4.1 below. 

1.15“Settlement Payment” has the meaning provided for in Section 3.1 below.

1.16“Third Parties” means any Person other than CAO and its Affiliates, and Biolase and its Affiliates.

	
2.
	
License and Covenant not to sue.  

2.1License. CAO hereby grants to Biolase and its Affiliates, and Biolase hereby accepts, a nonexclusive, nontransferable except as provided for in this Agreement, royalty-free, fully-paid, worldwide license under the Licensed Patents, to import, export, make, manufacture, have made, make for others, use, offer for sale, sell, or otherwise distribute Licensed Products, including the right to extend to others the right to make, manufacture, sell, offer for sale, distribute or export Licensed Products, for the purpose of supplying Licensed Products to Biolase or its Affiliates, or for the purpose of distributing or selling Licensed Products for Biolase or its Affiliates, without the right to further sublicense.  

2.2Covenant not to Sue.  CAO hereby covenants, during the term of this Agreement, not to sue Biolase or its Affiliates, or any of their direct or indirect manufacturers, distributors, suppliers, dealers, resellers, customers or end users, under the Licensed Patents, for making, having made, using, having used, selling, having sold, offering for sale, having offered for sale, distributing, leasing, renting, importing, or exporting, the Licensed Products, including for infringement of the Licensed Patents under the laws of the United States or the laws of any other country or jurisdiction, including a claim of infringement under 35 U.S.C. § 271(a), (b), (c), (f), or (g).  This covenant not to sue shall expressly exclude and shall not in any way apply to commercial activities of Biolase or its Affiliates which are unrelated to the commercialization or exploitation of the Licensed Products. 

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2.3Extension of Covenants Not to Sue, and Releases.  The covenants not to sue granted in Section 2.2 above, and the releases granted in Sections 4.1 and 4.2 below, all extend to Third Parties for claims relating to the Licensed Products to the extent such Third Parties: (a) are acting for or on behalf of the Biolase Entities; or (b) are direct or indirect customers, end-users, suppliers, manufacturers, resellers, contractors, agents, dealers and distributors of or for Biolase Entities; or (c) have rights under the doctrine of exhaustion. 

	
3.
	
Settlement Payment and Manufacturing Agreement.  

3.1Settlement Payment for Non-Patent Claims.  (A) Biolase shall (i) within five (5) days of the Effective Date pay to CAO Five Hundred Thousand U.S. Dollars and No Cents (USD$500,000.00) (the “Cash Payment”), and (ii) within thirty (30) days of the Effective Date issue to CAO 500,000 restricted shares of common stock of Biolase, Inc., par value $0.001 per share (the “Restricted Stock”), and (B) within thirty (30) days of December 31, 2021, (iii) pay to CAO the difference, if any, between (x) $1,000,000.00 and (y) the dollar value of the Restricted Stock on December 31, 2021, calculated using the closing price per share as quoted on NASDAQ on such date; provided that the foregoing calculation is not a negative number, (A) and (B) above being consideration for the dismissal, release, covenant no to sue and other benefits under this Agreement relating to the Non-Patent Claims (“Settlement Payment”). The Restricted Stock shall vest and be transferable on December 31, 2021, subject to CAO’s continued performance under this Agreement and the terms and conditions set forth in a restricted stock agreement to be entered into by and between Biolase and CAO. CAO represents and warrants that its Federal tax ID number is 87-0644790.  All taxes shall be the financial responsibility of the Party obligated to pay such taxes as determined by the applicable law and neither Party is or shall be liable at any time for any of the other Party’s taxes incurred in connection with or related to amounts paid under this Agreement.  The cash portions of the Settlement Payment will be made by wire transfer in U.S. dollars and in immediately available funds.  The wire transfer payment shall be sent to the following bank:

 

	
	
CAO Group, Inc.

	
Wells Fargo Bank, NA 

	
Account Number 7759503928

	
ABA Number: 121000248

	
SWIFT Code:  WFBIUS6S

 

Settlement Payment shall be deemed earned when paid and shall be completely non-refundable and non-cancellable.

 

3.2Manufacturing Agreement.  As consideration for the dismissal, license, release, covenant no to sue and other benefits under this Agreement relating to the Patent Claims and the Licensed Patents, CAO and Biolase agree to negotiate in good faith to finalize and execute a definitive Manufacturing Agreement. 

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4.
	
Releases, Dismissal, and Representations.

4.1Releases.  Except with respect to the obligations created by or arising out of this Agreement, and subject to payment to CAO of the Cash Payment as set forth in Section 3.1 above, CAO does hereby for itself and its Affiliates and their respective legal successors, heirs and assigns, release and absolutely discharge the Biolase Entities, and their respective past, present and future owners, shareholders, parents, subsidiaries, successors, assigns, divisions, units, officers, directors, employees, agents, attorneys, and representatives (collectively, “Releasees”), of and from any and all claims, demands, damages, debts, liabilities, accounts, reckonings, obligations, costs, expenses, liens, attorneys’ fees, actions and causes of action of every kind and nature whatsoever, (i) arising out of or in connection with the Litigation (including the Patent Claims and the Non-Patent Claims) or the Licensed Patents, including all Claims, and/or (ii) based in whole or in part on acts of the Biolase Entities prior to the Effective Date of this Agreement that would have been licensed (or covenanted not to sue) under this Agreement if performed after the Effective Date of this Agreement.  Biolase does hereby for itself and its Affiliates and their respective legal successors, heirs and assigns, release and absolutely discharge the CAO Entities, and their respective past, present and future owners, shareholders, parents, subsidiaries, successors, assigns, divisions, units, officers, directors, employees, agents, attorneys, and representatives (collectively, “Releasees”), of and from any and all claims, demands, damages, debts, liabilities, accounts, reckonings, obligations, costs, expenses, liens, attorneys’ fees, actions and causes of action of every kind and nature whatsoever prior to the Effective Date of this Agreement, in connection with the licensing and enforcement of the Licensed Patents associated with the activities of Biolase, and any claims, counterclaims, or defenses that Biolase may have to any claim for infringement by CAO on any of the Licensed Patents.

4.2Unknown Claims.  The Parties expressly acknowledge and agree that the release provided for in Section 4.1 extends to and fully and finally releases and forever resolves the Litigation and all matters covered by the releases that are known or unknown, anticipated or unanticipated, suspected or unsuspected, that have arisen or that may hereafter arise as a result of the discovery of new and/or additional facts.  The Parties, having made independent investigation to their satisfaction, acknowledge and understand the significance and potential consequences of their release of unknown claims.  The Parties intend that the claims released under this Agreement be construed as broadly as possible and agree to waive and relinquish all rights and benefits each may have under Section 1542 of the Civil Code of the State of California, or any similar statute or law of any other jurisdiction.  Section 1542 reads as follows: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR THE RELEASED PARTY.”

4.3Denial of Liability.  The Parties acknowledge that they are entering into this Agreement to resolve disputed claims, that nothing herein shall be construed to be an admission of liability, and that the Parties expressly deny any liability to the other Party.

4.4Dismissal.  Within five (5) days of the receipt by CAO of the Cash Payment, the Parties shall jointly file a stipulation of dismissal requesting that the United States District Court presiding over the Litigation dismiss with prejudice all claims and counterclaims between the Parties in the Litigation, each Party to bear its own costs and attorneys’ fees. The Parties agree to submit to the court appropriate stipulations and proposed orders for extensions of time for all due dates in the Litigation so that neither Party is required to incur unnecessary expenses in the Litigation between the Effective Date and the date the Litigation is dismissed.

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4.5Representations and Warranties. 

(a)CAO represents and warrants that (i) it owns all right, title and interest in and to the Licensed Patents, and (ii) CAO and its Affiliates do not own any patents or other intellectual property rights which are not licensed under this Agreement and which could be construed to cover any current products or services of Biolase or its Affiliates, and (iii) CAO is not aware of any prior art, public sale or use, or any other fact that would invalidate any of the Licensed Patents.  If during the term of this Agreement, CAO or any of its Affiliates hereafter acquires additional patent(s) or intellectual property rights, including those from a foreign entity, that may cover any of the Licensed Products, then the term Licensed Patents will be supplemented to include such additional patent(s) or intellectual property rights without the payment by Biolase of any additional amounts. CAO represents and warrants it is the true and sole owner of the Licensed Patents with the sole right to sue for past, present and future infringement and the sole right to grant licenses under the Licensed Patents; and that during the full term of this Agreement there are and shall be no liens, conveyances, mortgages, assignments, encumbrances or other agreements or obligations which prevent or impair the full and complete privileges granted by CAO, pursuant to the full terms and conditions of this Agreement. 

(b)All license rights, releases and covenants contained in this Agreement shall run with any of the Licensed Patents to which those rights, releases or covenants pertain and shall be binding on any successors-in-interest or assigns of the Licensed Patents.  CAO represents and warrants that CAO will not assign, transfer, and/or otherwise convey, whether individually or collectively, any ownership rights or exclusive licenses in, to, or under any of the Licensed Patents unless such is done in a written instrument that: (i) includes an agreement by the assignee, transferee, or the like to be bound by and subject to the terms, conditions, and provisions of this Agreement, including, but not limited to, the releases, licenses and covenants not to sue granted by CAO in this Agreement, and to obligate all future exclusive licensees and owners to also be so bound, and names the Biolase Entities as a third-party beneficiary to the extent of having the right to enforce such releases, licenses and covenants not to sue.  Any assignment, transfer or conveyance in violation of this Section 4.5(b) shall be null and void. 

5.Term and Termination of License.  The term of this Agreement, including the licenses granted under this Agreement, begins on the Effective Date and continues until the expiration of the last surviving Licensed Patent plus six years. For the avoidance of doubt, provided Biolase has made the Cash Payment and signed the Manufacturing Agreement under Section 3.2, (a) CAO shall have no right to terminate this Agreement before the end of its term, and (b) the covenants not to sue in Sections 2.2-2.3 and releases in Sections 4.1-4.2 shall survive any termination of this Agreement.  

	
6.
	
Assignment of Rights and Obligations; Bankruptcy.  

6.1Assignment of Rights and Obligations.  This Agreement is personal to the Parties, and no Party may assign this Agreement or any right or obligation under this Agreement without the prior written consent of the other Parties (other than in connection with a transaction effected solely for the purposes of changing the corporate, organizational form or jurisdiction of organization of an entity). Notwithstanding the above, this Agreement may be assigned, in whole or in part, by any Party without the other Parties’ consent as part of a sale or transfer of all or substantially all of its business related to the Licensed Products (regardless of the manner in which any such transaction is effected); provided however, that the rights assigned under this Agreement 

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will not extend to any other activity (i.e., unrelated to the Licensed Products) conducted by the assignee or any of its Affiliates prior to, on or after the effective date of the assignment. Any assignment or transfer in violation of this Section 6.1 shall be null and void. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties and their respective Affiliates and their permitted successors and assigns.

6.2Bankruptcy.  Each Party acknowledges that all rights, covenants and licenses granted by CAO are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the Bankruptcy Code (11 U.S.C. § 365(n)), licenses of rights to “intellectual property” as defined under Section 101(35A) of the Bankruptcy Code (11 U.S.C. § 101(35A)).  Each Party acknowledges this Agreement is an Executory Contract and that should any Party become a petitioner under the Bankruptcy Code, Section 365(n) applies to this Agreement and the rights afforded thereunder apply. Each Party further acknowledges that if such Party, as a debtor in possession or a trustee-in-bankruptcy in a case under the Bankruptcy Code, rejects this Agreement, the other Parties may elect to retain their rights under this Agreement as provided in Section 365(n) of the Bankruptcy Code.  Any change of control resulting from any such bankruptcy proceeding shall be subject to Section 4.5(b) above.  

	
7.
	
General Provisions.

7.1Confidentiality.  Except to the extent provided in Section 4.5(b), each Party will hold the terms of this Agreement in confidence and shall not publicize or disclose it in any manner whatsoever.  Notwithstanding the foregoing, the Parties may disclose this Agreement as required by applicable law, in confidence to a Court or responsive to a discovery request made in connection with a Court proceeding (or otherwise as directed by law), and to the Parties’ respective Affiliates, attorneys, accountants, auditors, tax preparers, financial advisors and other agents who have a need to know the content of this Agreement.  Further, Biolase may disclose the scope of the licenses and covenants granted in Section 2 and the scope of the releases granted in Sections 4, to a Third Party to the extent that Biolase reasonably believes necessary to respond to an inquiry from such Third Party as to whether products or activities are licensed and/or released and therefore not subject to a claim of infringement.  Further, Biolase and CAO may disclose this Agreement in connection with a proposed merger, acquisition, financing or similar transaction provided any such disclosure is made pursuant to a written confidentiality agreement.

7.2Applicable Law. This Agreement is governed by, and all disputes arising under, relating to, or in connection with this Agreement shall be resolved in accordance with, the laws of California to the exclusion of its conflict of laws rules. The Parties shall endeavor to resolve amicably by negotiation all disputes arising out of, relating to, or in connection with this Agreement, including any question regarding its existence, validity, or termination, and including any allegations relating to any Licensed Patent (“Disputes”).  Each Party agrees that it will not initiate any proceeding against the other Party, or assist any other person or entity in initiating litigation against the other Party, involving any Dispute until (i) written notice of a claim has been sent by the complaining Party to the other Party; and (ii) at least sixty (60) calendar days have passed after such written notice has been sent.  After receipt of that written notice, each Party will meet in person, through their respective chief executive officers and counsel, to discuss the claims and attempt to resolve the dispute without the need for litigation. Any claim under this Agreement shall be time-barred unless the claiming Party commences arbitration with respect to such claim within two (2) years after the basis for such claim became known or should have become known to the claiming Party.  Any applicable statutes of limitations and defenses based upon the passage of time shall be tolled with respect to any Dispute for sixty (60) calendar days after a Party requests in writing negotiation to resolve the Dispute, or such other longer period as the Parties may agree in writing.

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7.3The Parties agree:

	
 
	
▪
	
Any Dispute that either remains unresolved sixty (60) calendar days after a Party requests in writing negotiation, or within such other longer period as the Parties may agree in writing, shall be finally settled under the Comprehensive Arbitration Rules of JAMS, Inc. then in effect (“JAMS Arbitration Rules”). This Agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law.  For the avoidance of doubt, the Parties agree that any issue or disagreement over the scope or applicability of this agreement to arbitrate shall be resolved and determined by the arbitrator(s).

	
 
	
▪
	
The arbitration shall be heard and decided by one (1) arbitrator appointed in accordance with the JAMS Arbitration Rules unless either Party makes claims that exceed Five Million United States Dollars ($5,000,000.00 USD) in which event there shall be three (3) arbitrators appointed in accordance with the JAMS Arbitration Rules (the arbitrators hereafter referred to as the “Arbitral Tribunal”).

	
 
	
▪
	
The seat of the arbitration shall be held at JAMS, Inc. in Orange County, California, United States of America.  Hearings shall be conducted at the seat of the arbitration, save as the Parties and/or the Arbitral Tribunal may determine is appropriate for the convenience of the Parties and/or their witnesses. The arbitrators will determine the matters in dispute in accordance with California law and the arbitration will be conducted in the English language.

	
 
	
▪
	
The existence and content of the arbitral proceedings and any rulings or award shall be kept confidential except (i) to the extent that disclosure may be required of a Party to fulfill a legal duty, protect or pursue a legal right, or enforce or challenge an award in bona fide legal proceedings before a court or other judicial authority, or (ii) with the written consent of all Parties. Notwithstanding anything to the contrary, either Party may disclose matters relating to the arbitration or the arbitral proceedings where necessary for the preparation or presentation of a claim or defense in such arbitration.

	
 
	
▪
	
The Arbitral Tribunal shall include in their award an allocation of costs and expenses to be paid by the non-prevailing party to the prevailing party, including attorneys’ fees and costs and expenses of management, in-house counsel, experts, and witnesses, as the Arbitral Tribunal shall deem reasonable. In making such allocation to the prevailing party, the Arbitral Tribunal shall consider the relative success of the Parties on their claims, counterclaims, and defenses.

	
 
	
▪
	
The Parties shall comply with the award of the Arbitral Tribunal, which shall be final and binding upon the Parties.  Judgment confirming and/or enforcing the award rendered by the Arbitral Tribunal may be entered in any court of competent jurisdiction.  

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7.4Duly Existing.  Each of the Parties represents and warrants that it is duly existing, and each Party hereto represents and warrants: (a) that it has the full power and authority to enter into this Agreement and to perform all of the covenants and agreements stated herein; (b) that this Agreement has been executed freely and voluntarily, without economic compulsion or other duress, and with full knowledge of its legal significance and consequences; (c) that there are no other Persons whose consent to this Agreement or whose joinder herein is necessary to make fully effective the provisions of this Agreement; and (d) that its signatories have been properly authorized to execute this Agreement and to enter into this Agreement on behalf of the Party and to bind the Party to perform all of the covenants and agreements stated herein  

7.5Comprehension.  Each Party acknowledges to the other Party that it has been represented by independent legal counsel of its own choice throughout all the negotiations which preceded the execution of this Agreement and that it has executed this Agreement with the consent and on the advice of such independent legal counsel.  Each Party further acknowledges that it and its counsel have had adequate opportunity to make whatever investigation or inquiry they may deem necessary or desirable in connection with the subject matter of this Agreement prior to the execution hereof.  Each Party has authorized and directed their respective attorneys to execute and deliver such other and further documents as may be required to carry out the terms and conditions of this Agreement.  

7.6Interpretation.  The language of this Agreement has been approved by counsel for the Parties.  The language of this Agreement shall be construed according to its fair meaning and none of the Parties (or the Parties’ respective attorneys) shall be deemed to be the draftsman of this Agreement in any action which may hereafter arise between the Parties.  

7.7Entire Agreement.  This is an enforceable Agreement.  This Agreement, including the attached Exhibits which are incorporated by reference herein, constitute the entire agreement between the Parties and supersede all previous and contemporaneous communications, representations, agreements or understandings, either oral or written, between the Parties with respect to the subject matter hereof.  This Agreement may be amended, supplemented or modified only by a written instrument duly executed by or on behalf of each Party hereto which specifically refers to this Agreement.

7.8Waiver.  No waiver of any breach of any provision of this Agreement shall constitute a waiver of any prior, concurrent or subsequent breach of the same or any provisions hereof, and no waiver shall be effective unless made in writing and signed by an authorized representative of the waiving Party.

7.9Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be sent by a reliable overnight courier service; or by facsimile to the other Party at the address below or to such other address for which such Party shall give notice hereunder.  Such notice shall be deemed to have been given one day after the date of sending if by overnight courier service, or upon confirmed receipt if delivered by facsimile, except that notice of change of address shall be effective only upon receipt.

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For CAO: 

Densen Cao, President 4628 West Skyhawk Drive West Jordan, UT 84084 Tel:801-256-9282 

Fax:801-256-9287 

With a copy to:

H. Dickson Burton

TRASKBRITT, PC

230 South 500 East # 300

Salt Lake City, Utah 84102

Tel: (801) 532-1922; Fax: (801) 531-9168

Email:HDBurton@traskbritt.com
	
For Biolase: 

Todd Norbe, President and CEO

4 Cromwell

Irvine, California

Tel:(949) 226-8100

Fax:(949) 365-4913

 

With a copy to:

Evan Finkel

Pillsbury Winthrop Shaw Pittman LLP

725 South Figueroa Street, Suite 2800

Los Angeles, California  90017-5406

Tel: (213) 488-7307; Fax: (213) 226-4058

Email: evan.finkel@pillsburylaw.com

 

 

7.10Severability.  If any provision of this Agreement shall be determined to be invalid, illegal or unenforceable under any controlling body of law, that provision shall be reformed, construed and enforced to the maximum extent permissible; and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

7.11Counterparts.  This Agreement may be signed in counterparts, each of which shall be deemed an original hereof, but all of which together shall constitute one and the same instrument.

7.12Duty to Effectuate.  The Parties agree to perform any lawful additional acts, including the execution of additional agreements, as are reasonably necessary to effectuate the purpose of this Agreement.

 

[SIGNATURES APPEAR ON NEXT PAGE]

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IN WITNESS WHEREOF, the Parties do hereby execute this Settlement and Patent License Agreement by duly authorized officials as of the Effective Date:

 

 

	
Biolase, Inc.
	
 
	
CAO Group, Inc.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Todd Norbe
	
 
	
By:
	
 
	
/s/ Densen Cao

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Name:
	
 
	
Todd Norbe
	
 
	
Name:
	
 
	
Densen Cao

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Title:
	
 
	
President and CEO
	
 
	
Title:
	
 
	
President

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Date:
	
 
	
January 25, 2019
	
 
	
Date:
	
 
	
January 23, 2019

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Approved:
	
 
	
Approved:

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/   Evan Finkel
	
 
	
By:
	
 
	
/s/   H. Dickson Burton

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Name:
	
 
	
Evan Finkel
	
 
	
Name:
	
 
	
H. Dickson Burton

	
 
	
 
	
Pillsbury Winthrop Shaw Pittman LLP
	
 
	
 
	
 
	
TRASKBRITT, PC

	
 
	
 
	
Attorneys for Biolase, Inc.
	
 
	
 
	
 
	
Attorneys for CAO Group, Inc.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Date:
	
 
	
January 24, 2019
	
 
	
Date:
	
 
	
January 24, 2019

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

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Appendix A

 

	
No.
	
Patent #

	
1
	
US 7,485,116

	
2
	
US 8,337,097

	
3
	
US 8,834,457

	
4
	
US 8,961,040

	
5
	
US 8,967,883

	
6
	
EP 2118971

	
7
	
EP 2120760

	
8
	
JP 5685352

	
9
	
JP 5631594

	
10
	
KR 10-1503544

 

 

	
No.
	
Application #

	
1
	
US 60/891,037

	
2
	
US 11/231,546

	
3
	
US 11/961,804

	
4
	
US 13/863,236

	
5
	
US 15/173,162

	
6
	
US 95/002,271

	
7
	
PCT/US08/51940

	
8
	
PCT/US08/54627

	
9
	
KR 1020097019726

 

12Exhibit 10.12

DIAMOND
S SHIPPING inc.

2019 EQUITY and INCENTIVE Compensation PLAN

 

1.          Purpose.
The purpose of this Plan is to attract and retain non-employee Directors, Employees and certain consultants to the Company and
its Subsidiaries and to provide to such Persons incentives and rewards for service and/or performance.

 

2.          Definitions.
As used in this Plan:

 

(a)          “Appreciation
Right” means a right granted pursuant to Section 5 of this Plan.

 

(b)          “Base
Price” means the price to be used as the basis for determining the Spread upon the exercise of an Appreciation Right.

 

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

 

(d)          “Change
in Control” has the meaning set forth in Section 12 of this Plan.

 

(e)          “Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

(f)          “Committee”
means the Compensation Committee of the Board (or its successor(s)) or any other committee of the Board designated by the Board
to administer this Plan pursuant to Section 10 of this Plan.

 

(g)          “Common
Stock” means the common stock, no par value, of the Company or any security into which such common stock may be changed
by reason of any transaction or event of the type referred to in Section 11 of this Plan.

 

(h)          “Company”
means Diamond S Shipping Inc., a Marshall Islands corporation, and its successors.

 

(i)          “Date
of Grant” means the date provided for by the Committee on which a grant of Option Rights, Appreciation Rights, Performance
Shares, Performance Units or other awards contemplated by Section 9 of this Plan or a grant or sale of Restricted
Stock, Restricted Stock Units or other awards contemplated by Section 9 of this Plan, will become effective
(which date will not be earlier than the date on which the Committee takes action with respect thereto).

 

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

 

(k)          “Effective
Date” means the date that the Common Stock is listed for trading on the NYSE.

 

     

     

    

 

(l)          “Employee”
means any individual, including officers and Directors, employed by the Company or any Subsidiary. Neither service as a Director
nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company or
any Subsidiary.

 

(m)          “Evidence
of Award” means an agreement, certificate, resolution or other type or form of writing or other evidence approved
by the Committee that sets forth the terms and conditions of the awards granted under this Plan. An Evidence of Award may be in
an electronic medium, may be limited to notation on the books and records of the Company and, unless otherwise determined by the
Committee, need not be signed by a representative of the Company or a Participant.

 

(n)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, as such law,
rules and regulations may be amended from time to time.

 

(o)          “Incentive
Stock Option” means an Option Right that is intended to qualify as an “incentive stock option” under
Section 422 of the Code or any successor provision.

 

(p)          “Management
Objectives” means the measurable performance objective or objectives established pursuant to this Plan for Participants
who have received grants of Performance Shares or Performance Units or, when so determined by the Committee, Option Rights, Appreciation
Rights, Restricted Stock, Restricted Stock Units, dividend equivalents or other awards pursuant to this Plan. If the Committee
determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in
which it conducts its business, or other events or circumstances render the Management Objectives unsuitable, the Committee may
in its discretion modify such Management Objectives or the acceptable levels of achievement, in whole or in part, as the Committee
deems appropriate and equitable.

 

(q)          “Market
Value per Share” means, as of any particular date, if the Common Stock is listed on any established stock exchange
or traded on any established market, and unless otherwise determined by the Committee, the closing price of a share of Common Stock
as quoted on such exchange or market on the date of determination, as reported in a source the Committee deems reliable. If there
is no closing price for the Common Stock on the particular date, then the Market Value per Share will be the closing price on the
last preceding date for which such quotation exists. If there is no regular public trading market for the shares of Common Stock,
then the Market Value per Share will be the fair market value as determined in good faith by the Committee. The Committee is authorized
to adopt another fair market value pricing method provided such method is stated in the applicable Evidence of Award and is in
compliance with the fair market value pricing rules set forth in Section 409A of the Code.

 

(r)          “Optionee”
means the optionee named in an Evidence of Award evidencing an outstanding Option Right.

 

    	 	2	 

     

    

 

(s)          “Option
Price” means the purchase price payable on exercise of an Option Right.

 

(t)          “Option
Right” means the right to purchase shares of Common Stock upon exercise of an award granted pursuant to Section 4
of this Plan.

 

(u)          “Participant”
means a Person who is selected by the Committee to receive benefits under this Plan and who is at the time (i) an Employee,
including an individual who has agreed to commence serving in such capacity within 90 days of the Date of Grant, (ii) a consultant
(provided that such Person satisfies the Form S-8 definition of “employee”) or (iii) a non-employee Director.

 

(v)         “Performance
Period” means, in respect of a Performance Share or Performance Unit, a period of time established pursuant to Section 8
of this Plan within which the Management Objectives relating to such Performance Share or Performance Unit are to be achieved.

 

(w)          “Performance
Share” means a bookkeeping entry that records the equivalent of one share of Common Stock awarded pursuant to Section 8
of this Plan.

 

(x)          “Performance
Unit” means a bookkeeping entry awarded pursuant to Section 8 of this Plan that records a unit
equivalent to $1.00 or such other value as is determined by the Committee.

 

(y)          “Person”
means any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act).

 

(z)          “Plan”
means this Equity and Incentive Compensation Plan, as may be amended or amended and restated from time to time.

 

(aa)         “Restricted
Stock” means shares of Common Stock granted or sold pursuant to Section 6 of this Plan as to which
neither the substantial risk of forfeiture nor the prohibition on transfers has expired.

 

(bb)         “Restricted
Stock Units” means an award made pursuant to Section 7 of this Plan of the right to receive shares
of Common Stock, cash or a combination thereof at the end of the applicable Restriction Period.

 

(cc)         “Restriction
Period” means the period of time during which Restricted Stock Units are subject to restrictions, as provided in
Section 7 of this Plan.

 

(dd)         “Spread”
means the excess of the Market Value per Share on the date when an Appreciation Right is exercised over the Base Price provided
for with respect to the Appreciation Right.

 

(ee)         “Stockholder”
means an individual or entity that owns one or more shares of Common Stock.

 

    	 	3	 

     

    

 

(ff)         “Subsidiary”
means a corporation, company or other entity (i) more than 50% of whose outstanding shares or securities (representing the
right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares
or securities (as may be the case in a partnership, joint venture, limited liability company, unincorporated association or other
similar entity), but more than 50% of whose ownership interest representing the right generally to make decisions for such other
entity is, at such applicable time, owned or controlled, directly or indirectly, by the Company; provided, however,
that for purposes of determining whether any individual may be a Participant for purposes of any grant of Incentive Stock Options,
“Subsidiary” means any corporation in which the Company at the time owns or controls, directly or indirectly, more
than 50% of the total combined Voting Power represented by all classes of stock issued by such corporation.

 

(gg)         “Voting
Power” means, at any time, the combined voting power of the then-outstanding securities entitled to vote generally
in the election of Directors in the case of the Company or members of the board of directors or similar body in the case of another
entity.

 

3.          Shares
Available Under This Plan.

 

(a)          Maximum
Shares Available Under This Plan.

 

(i)          Subject
to adjustment as provided in Section 11 of this Plan and the share counting rules set forth in Section 3(b)
of this Plan, the number of shares of Common Stock available under this Plan for awards of (A) Option Rights or Appreciation
Rights, (B) Restricted Stock, (C) Restricted Stock Units, (D) Performance Shares or Performance Units, (E) awards
contemplated by Section 9 of this Plan or (F) dividend equivalents paid with respect to awards made under
this Plan will not exceed in the aggregate 3,989,000 shares of Common Stock. Such shares may be shares of original issuance or
treasury shares or a combination of the foregoing.

 

(ii)         The
aggregate number of shares of Common Stock available under Section 3(a)(i) of this Plan will be reduced by (A) one
share of Common Stock for every one share of Common Stock subject to an award of Option Rights or Appreciation Rights granted under
this Plan, and (B) two shares of Common Stock for every one share of Common Stock subject to an award other than of Option
Rights or Appreciation Rights granted under this Plan.

 

    	 	4	 

     

    

 

(b)          Share
Counting Rules.

 

(i)          Except
as provided in Section 22 of this Plan, if any award granted under this Plan (in whole or in part) is cancelled
or forfeited, expires, is settled for cash or is unearned, the shares of Common Stock subject to such award will, to the extent
of such cancellation, forfeiture, expiration, cash settlement or unearned amount, again be available under Section 3(a)(i)
above (at a rate of one share of Common Stock for every one share of Common Stock subject to awards of Option Rights or Appreciation
Rights and two shares of Common Stock for every one share of Common Stock subject to awards other than of Option Rights or Appreciation
Rights).

 

(ii)         Notwithstanding
anything to the contrary contained in this Plan: (A) shares of Common Stock withheld by the Company, tendered or otherwise
used in payment of the Option Price of an Option Right will not be added (or added back, as applicable) to the aggregate number
of shares of Common Stock available under Section 3(a)(i) of this Plan; (B) shares of Common Stock withheld
by the Company, tendered or otherwise used to satisfy tax withholding with respect to awards other than as described in clause
(C) will not be added (or added back, as applicable) to the aggregate number of shares of Common Stock available under Section 3(a)(i)
of this Plan; (C) shares of Common Stock withheld by the Company, tendered or otherwise used prior to the tenth anniversary
of the Effective Date to satisfy tax withholding with respect to awards other than Option Rights or Appreciation Rights will be
added back (but only to the extent such withholding did not exceed the minimum amounts of tax required to be withheld) to the aggregate
number of shares of Common Stock available under Section 3(a)(i) of this Plan; (D) shares of Common Stock
subject to an Appreciation Right that are not actually issued in connection with the settlement of such Appreciation Right on the
exercise thereof will not be added back to the aggregate number of shares of Common Stock available under Section 3(a)(i)
of this Plan; and (E) shares of Common Stock reacquired by the Company on the open market or otherwise using cash proceeds
from the exercise of Option Rights will not be added (or added back, as applicable) to the aggregate number of shares of Common
Stock available under Section 3(a)(i) of this Plan.

 

(iii)        If,
under this Plan, a Participant has elected to give up the right to receive compensation in exchange for shares of Common Stock
based on fair market value, such shares of Common Stock will not count against the aggregate limit under Section 3(a)(i)
of this Plan.

 

    	 	5	 

     

    

 

(c)          Limit
on Incentive Stock Options. Notwithstanding anything to the contrary contained in this Plan, and subject to adjustment as provided
in Section 11 of this Plan, the aggregate number of shares of Common Stock actually issued or transferred by
the Company upon the exercise of Incentive Stock Options will not exceed 3,989,000 shares of Common Stock.

 

(d)          Individual
Director Limit. Notwithstanding anything to the contrary contained in this Plan, and subject to adjustment as provided in Section 11
of this Plan, in no event will any non-employee Director in any one calendar year be granted compensation for such service having
an aggregate maximum value (measured at the Date of Grant as applicable, and calculating the value of any awards under this Plan
based on the grant date fair value for financial reporting purposes) in excess of $350,000.

 

4.          Option
Rights. The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting
to Participants of Option Rights. Each such grant may utilize any or all of the authorizations, and will be subject to all of the
requirements, contained in the following provisions:

 

(a)          Each
grant will specify the number of shares of Common Stock to which it pertains subject to the limitations set forth in Section 3
of this Plan.

 

(b)          Each
grant will specify an Option Price per share of Common Stock, which (except with respect to awards under Section 22
of this Plan) may not be less than the Market Value per Share on the Date of Grant.

 

(c)          Each
grant will specify whether the Option Price will be payable (i) in cash, by check acceptable to the Company or by wire transfer
of immediately available funds, (ii) by the actual or constructive transfer to the Company of shares of Common Stock owned
by the Optionee having a value at the time of exercise equal to the total Option Price, (iii) subject to any conditions or
limitations established by the Committee, by the withholding of shares of Common Stock otherwise issuable upon exercise of an Option
Right pursuant to a “net exercise” arrangement (it being understood that, solely for purposes of determining the number
of treasury shares held by the Company, the shares of Common Stock so withheld will not be treated as issued and acquired by the
Company upon such exercise), (iv) by a combination of such methods of payment or (v) by such other methods as may be
approved by the Committee.

 

(d)          To
the extent permitted by law, any grant may provide for deferred payment of the Option Price from the proceeds of sale through a
bank or broker on a date satisfactory to the Company of some or all of the shares of Common Stock to which such exercise relates.

 

(e)          Successive
grants may be made to the same Participant whether or not any Option Rights previously granted to such Participant remain unexercised.

 

(f)          Each
grant will specify the period or periods of continuous service by the Optionee with the Company or any Subsidiary, if any, that
is necessary before any Option Rights or installments thereof will become exercisable. Option Rights may provide for continued
vesting or the earlier exercise of such Option Rights, including in the event of the retirement, death or disability of a Participant
or in the event of a Change in Control.

 

    	 	6	 

     

    

 

(g)          Any
grant of Option Rights may specify Management Objectives that must be achieved as a condition to the exercise of such rights.

 

(h)          Option
Rights granted under this Plan may be (i) options, including Incentive Stock Options, that are intended to qualify under particular
provisions of the Code, (ii) options that are not intended to so qualify or (iii) combinations of the foregoing. Incentive
Stock Options may only be granted to Participants who meet the definition of “employees” under Section 3401(c)
of the Code.

 

(i)          No
Option Right will be exercisable more than 10 years from the Date of Grant. The Committee may provide in any Evidence of Award
for the automatic exercise of an Option Right upon such terms and conditions as established by the Committee.

 

(j)          Option
Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon.

 

(k)          Each
grant of Option Rights will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and will
contain such terms and provisions, consistent with this Plan, as the Committee may approve.

 

5.          Appreciation
Rights.

 

(a)          The
Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting to any Participant
of Appreciation Rights. An Appreciation Right will be the right of the Participant to receive from the Company an amount determined
by the Committee, which will be expressed as a percentage of the Spread (not exceeding 100%) at the time of exercise.

 

(b)          Each
grant of Appreciation Rights may utilize any or all of the authorizations, and will be subject to all of the requirements, contained
in the following provisions:

 

(i)          Each
grant may specify that the amount payable on exercise of an Appreciation Right will be paid by the Company in cash, shares of Common
Stock or any combination thereof.

 

(ii)         Any
grant may specify that the amount payable on exercise of an Appreciation Right may not exceed a maximum specified by the Committee
on the Date of Grant.

 

(iii)        Any
grant may specify waiting periods before exercise and permissible exercise dates or periods.

 

    	 	7	 

     

    

 

(iv)        Each
grant will specify the period or periods of continuous service by the Participant with the Company or any Subsidiary, if any, that
is necessary before the Appreciation Rights or installments thereof will become exercisable. Appreciation Rights may provide for
continued vesting or the earlier exercise of such Appreciation Rights, including in the event of the retirement, death or disability
of a Participant or in the event of a Change in Control.

 

(v)         Any
grant of Appreciation Rights may specify Management Objectives that must be achieved as a condition of the exercise of such Appreciation
Rights.

 

(vi)        Appreciation
Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon.

 

(vii)       Successive
grants of Appreciation Rights may be made to the same Participant regardless of whether any Appreciation Rights previously granted
to the Participant remain unexercised.

 

(viii)      Each
grant of Appreciation Rights will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan and
will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

 

(ix)         Each
grant will specify in respect of each Appreciation Right a Base Price, which (except with respect to awards under Section 22
of this Plan) may not be less than the Market Value per Share on the Date of Grant.

 

(x)          No
Appreciation Right granted under this Plan may be exercised more than 10 years from the Date of Grant. The Committee may provide
in any Evidence of Award for the automatic exercise of an Appreciation Right upon such terms and conditions as established by the
Committee.

 

6.          Restricted
Stock. The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the grant or
sale of Restricted Stock to Participants. Each such grant or sale may utilize any or all of the authorizations, and will be subject
to all of the requirements, contained in the following provisions:

 

(a)          Each
such grant or sale will constitute an immediate transfer of the ownership of shares of Common Stock to the Participant in consideration
of the performance of services, entitling such Participant to voting, dividend and other ownership rights, but subject to the substantial
risk of forfeiture and restrictions on transfer hereinafter described.

 

    	 	8	 

     

    

 

(b)          Each
such grant or sale may be made without additional consideration or in consideration of a payment by such Participant that is less
than the Market Value per Share on the Date of Grant.

 

(c)          Each
such grant or sale will provide that the Restricted Stock covered by such grant or sale will be subject to a “substantial
risk of forfeiture” within the meaning of Section 83 of the Code for a period to be determined by the Committee on the
Date of Grant or until achievement of Management Objectives referred to in Section 6(e) of this Plan.

 

(d)          Each
such grant or sale will provide that during or after the period for which such substantial risk of forfeiture is to continue, the
transferability of the Restricted Stock will be prohibited or restricted in the manner and to the extent prescribed by the Committee
on the Date of Grant (which restrictions may include rights of repurchase or first refusal of the Company or provisions subjecting
the Restricted Stock to a continuing substantial risk of forfeiture while held by any transferee).

 

(e)          Any
grant of Restricted Stock may specify Management Objectives that, if achieved, will result in termination or early termination
of the restrictions applicable to such Restricted Stock.

 

(f)          Notwithstanding
anything to the contrary contained in this Plan, Restricted Stock may provide for continued vesting or the earlier termination
of restrictions on such Restricted Stock, including in the event of the retirement, death or disability of a Participant or in
the event of a Change in Control.

 

(g)          Any
such grant or sale of Restricted Stock will require that any and all dividends or other distributions paid thereon during the period
of such restrictions be automatically deferred and/or reinvested in additional Restricted Stock, which will be subject to the same
restrictions as the underlying award. For the avoidance of doubt, any such dividends or other distributions on Restricted Stock
will be deferred until, and paid contingent upon, the vesting of such Restricted Stock.

 

(h)          Each
grant or sale of Restricted Stock will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this Plan
and will contain such terms and provisions, consistent with this Plan, as the Committee may approve. Unless otherwise directed
by the Committee, (i) all certificates representing Restricted Stock will be held in custody by the Company until all restrictions
thereon will have lapsed, together with a stock power or powers executed by the Participant in whose name such certificates are
registered, endorsed in blank and covering such shares, or (ii) all Restricted Stock will be held at the Company’s transfer
agent in book entry form with appropriate restrictions relating to the transfer of such Restricted Stock.

 

7.          Restricted
Stock Units. The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting
or sale of Restricted Stock Units to Participants. Each such grant or sale may utilize any or all of the authorizations, and will
be subject to all of the requirements, contained in the following provisions:

 

    	 	9	 

     

    

 

(a)          Each
such grant or sale will constitute the agreement by the Company to deliver shares of Common Stock or cash, or a combination thereof,
to the Participant in the future in consideration of the performance of services, but subject to the fulfillment of such conditions
(which may include the achievement of Management Objectives) during the Restriction Period as the Committee may specify.

 

(b)          Each
such grant or sale may be made without additional consideration or in consideration of a payment by such Participant that is less
than the Market Value per Share on the Date of Grant.

 

(c)          Notwithstanding
anything to the contrary contained in this Plan, Restricted Stock Units may provide for continued vesting or the earlier lapse
or other modification of the Restriction Period, including in the event of the retirement, death or disability of a Participant
or in the event of a Change in Control.

 

(d)          During
the Restriction Period, the Participant will have no right to transfer any rights under his or her award and will have no rights
of ownership in the shares of Common Stock deliverable upon payment of the Restricted Stock Units and will have no right to vote
them, but the Committee may, at or after the Date of Grant, authorize the payment of dividend equivalents on such Restricted Stock
Units on a deferred and contingent basis, either in cash or in additional shares of Common Stock; provided, however,
that dividend equivalents or other distributions on shares of Common Stock underlying Restricted Stock Units will be deferred until
and paid contingent upon the vesting of such Restricted Stock Units.

 

(e)          Each
grant or sale of Restricted Stock Units will specify the time and manner of payment of the Restricted Stock Units that have been
earned. Each grant or sale will specify that the amount payable with respect thereto will be paid by the Company in whole shares
of Common Stock or cash, or a combination thereof. Any fractional amounts may be rounded up or down to the nearest whole number
or payable in cash, in any such case, as may be determined by the Committee in its sole discretion.

 

(f)          Each
grant or sale of Restricted Stock Units will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to this
Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

 

8.          Performance
Shares and Performance Units. The Committee may, from time to time and upon such terms and conditions as it may determine,
authorize the granting of Performance Shares and Performance Units. Each such grant may utilize any or all of the authorizations,
and will be subject to all of the requirements, contained in the following provisions:

 

(a)          Each
grant will specify the number or amount of Performance Shares or Performance Units to which it pertains, which number or amount
may be subject to adjustment to reflect changes in compensation or other factors.

 

    	 	10	 

     

    

 

(b)          The
Performance Period with respect to each grant of Performance Shares or Performance Units will be such period of time as will be
determined by the Committee, which may be subject to continued vesting or earlier lapse or other modification, including in the
event of the retirement, death or disability of a Participant or in the event of a Change in Control.

 

(c)          Each
grant of Performance Shares or Performance Units will specify Management Objectives which, if achieved, will result in payment
or early payment of the award, and each grant may specify in respect of such specified Management Objectives a minimum acceptable
level or levels of achievement and may set forth a formula for determining the number of Performance Shares or Performance Units
that will be earned if performance is at or above the minimum or threshold level or levels, or is at or above the target level
or levels, but falls short of maximum achievement of the specified Management Objectives.

 

(d)          Each
grant will specify the time and manner of payment of Performance Shares or Performance Units that have been earned. Any grant may
specify that the amount payable with respect thereto may be paid by the Company in cash, in shares of Common Stock, in Restricted
Stock or Restricted Stock Units or in any combination thereof.

 

(e)          Any
grant of Performance Shares or Performance Units may specify that the amount payable or the number of shares of Common Stock, Restricted
Stock or Restricted Stock Units payable with respect thereto may not exceed a maximum specified by the Committee on the Date of
Grant.

 

(f)          The
Committee may, on the Date of Grant of Performance Shares or Performance Units, provide for the payment of dividend equivalents
to the holder thereof either in cash or in additional shares of Common Stock, subject in all cases to deferral and payment on a
contingent basis based on the Participant’s earning and vesting of the Performance Shares or Performance Units, as applicable,
with respect to which such dividend equivalents are paid.

 

(g)          Each
grant of Performance Shares or Performance Units will be evidenced by an Evidence of Award. Each Evidence of Award will be subject
to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

 

    	 	11	 

     

    

 

9.          Other
Awards.

 

(a)          Subject
to applicable law and the applicable limits set forth in Section 3 of this Plan, the Committee may authorize
the grant to any Participant of shares of Common Stock or such other awards that may be denominated or payable in, valued in whole
or in part by reference to, or otherwise based on, or relating to, shares of Common Stock or factors that may influence the value
of such shares, including, without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable
into shares of Common Stock, purchase rights for shares of Common Stock, awards with value and payment contingent upon performance
of the Company or specified Subsidiaries, affiliates or other business units thereof or any other factors designated by the Committee,
and awards valued by reference to the book value of the shares of Common Stock or the value of securities of, or the performance
of specified Subsidiaries or affiliates or other business units of the Company. The Committee will determine the terms and conditions
of such awards. Shares of Common Stock delivered pursuant to an award in the nature of a purchase right granted under this Section 9
will be purchased for such consideration, paid for at such time, by such methods, and in such forms, including, without limitation,
shares of Common Stock, other awards, notes or other property, as the Committee determines.

 

(b)          Cash
awards, as an element of or supplement to any other award granted under this Plan, may also be granted pursuant to this Section 9.

 

(c)          The
Committee may authorize the grant of shares of Common Stock as a bonus, or may authorize the grant of other awards in lieu of obligations
of the Company or a Subsidiary to pay cash or deliver other property under this Plan or under other plans or compensatory arrangements,
subject to such terms as will be determined by the Committee in a manner that complies with Section 409A of the Code.

 

(d)          The
Committee may, at or after the Date of Grant, authorize the payment of dividends or dividend equivalents on awards granted under
this Section 9 on a deferred and contingent basis, either in cash or in additional shares of Common Stock; provided,
however, that dividend equivalents or other distributions on shares of Common Stock underlying awards granted under this
Section 9 will be deferred until and paid contingent upon the earning and vesting of such awards.

 

(e)          The
Evidence of Award will specify the time and terms of delivery of an award granted under this Section 9.

 

(f)          Notwithstanding
anything to the contrary contained in this Plan, awards under this Section 9 may provide for the earning or
vesting of, or earlier elimination of restrictions applicable to, such award, including in the event of the retirement, death or
disability of a Participant or in the event of a Change in Control.

 

10.         Administration
of This Plan.

 

(a)          This
Plan will be administered by the Committee. The Committee may from time to time delegate all or any part of its authority under
this Plan to a subcommittee thereof. To the extent of any such delegation, references in this Plan to the Committee will be deemed
to be references to such subcommittee.

 

(b)          The
interpretation and construction by the Committee of any provision of this Plan or of any Evidence of Award (or related documents)
and any determination by the Committee pursuant to any provision of this Plan or of any such agreement, notification or document
will be final and conclusive. No member of the Committee will be liable for any such action or determination made in good faith.
In addition, the Committee is authorized to take any action it determines in its sole discretion to be appropriate subject only
to the express limitations contained in this Plan, and no authorization in any Plan section or other provision of this Plan is
intended or may be deemed to constitute a limitation on the authority of the Committee.

 

    	 	12	 

     

    

 

(c)          To
the extent permitted by law, the Committee may delegate to one or more of its members, to one or more officers of the Company,
or to one or more agents or advisors, such administrative duties or powers as it may deem advisable, and the Committee, the subcommittee,
or any Person to whom duties or powers have been delegated as aforesaid, may employ one or more Persons to render advice with respect
to any responsibility the Committee, the subcommittee or such Person may have under this Plan. The Committee may, by resolution,
authorize one or more officers of the Company to do one or both of the following on the same basis as the Committee: (i) designate
employees to be recipients of awards under this Plan; and (ii) determine the size of any such awards; provided, however,
that (A) the Committee will not delegate such responsibilities to any such officer for awards granted to an employee who is
an officer, Director, or more than 10% “beneficial owner” (as such term is defined in Rule 13d-3 promulgated under
the Exchange Act) of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange
Act, as determined by the Committee in accordance with Section 16 of the Exchange Act; (B) the resolution providing for such
authorization will set forth the total number of shares of Common Stock such officer(s) may grant; and (C) the officer(s)
will report periodically to the Committee regarding the nature and scope of the awards granted pursuant to the authority delegated.

 

11.         Adjustments.
The Committee will make or provide for such adjustments in the number of and kind of shares of Common Stock covered by outstanding
Option Rights, Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units granted
hereunder and, if applicable, in the number of and kind of shares of Common Stock covered by other awards granted pursuant to Section 9
of this Plan, in the Option Price and Base Price provided in outstanding Option Rights and Appreciation Rights, respectively, and
in other award terms, as the Committee, in its sole discretion, exercised in good faith, determines is equitably required to prevent
dilution or enlargement of the rights of Participants that otherwise would result from (a) any extraordinary cash dividend,
stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, (b) any
merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution
of assets, issuance of rights or warrants to purchase securities or (c) any other corporate transaction or event having an
effect similar to any of the foregoing. Moreover, in the event of any such transaction or event or in the event of a Change in
Control, the Committee may provide in substitution for any or all outstanding awards under this Plan such alternative consideration
(including cash), if any, as it, in good faith, may determine to be equitable in the circumstances and will require in connection
therewith the surrender of all awards so replaced in a manner that complies with Section 409A of the Code. In addition, for
each Option Right or Appreciation Right with an Option Price or Base Price, respectively, greater than or equal to the consideration
offered in connection with any such transaction or event or Change in Control, the Committee may in its discretion elect to cancel
such Option Right or Appreciation Right without any payment to the Person holding such Option Right or Appreciation Right. The
Committee will also make or provide for such adjustments in the number of shares of Common Stock specified in Section 3
of this Plan as the Committee in its sole discretion, exercised in good faith, determines is appropriate to reflect any transaction
or event described in this Section 11; provided, however, that any such adjustment to the number
specified in Section 3(c) of this Plan will be made only if and to the extent that such adjustment would not
cause any Option Right intended to qualify as an Incentive Stock Option to fail to so qualify.

 

    	 	13	 

     

    

 

12.         Change
in Control. For purposes of this Plan, a “Change in Control” will have the meaning in the applicable Evidence of
Award.

 

13.         Detrimental
Activity and Recapture Provisions. Any Evidence of Award may reference a clawback policy of the Company or provide for the
cancellation or forfeiture of an award or the forfeiture and repayment to the Company of any gain related to an award, or other
provisions intended to have a similar effect, upon such terms and conditions as may be determined by the Committee from time to
time, if a Participant, either (a) during employment or other service with the Company or a Subsidiary, or (b) within
a specified period after termination of such employment or service, engages in any detrimental activity, as described in the applicable
Evidence of Award or such clawback policy. In addition, notwithstanding anything in this Plan to the contrary, any Evidence of
Award or such clawback policy may also provide for the cancellation or forfeiture of an award or the forfeiture and repayment to
the Company of any shares of Common Stock issued under and/or any other benefit related to an award, or other provisions intended
to have a similar effect, upon such terms and conditions as may be required by the Committee or under Section 10D of the Exchange
Act and any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange
or national securities association on which the shares of Common Stock may be traded.

 

14.         Non-U.S.
Participants. In order to facilitate the making of any grant or combination of grants under this Plan, the Committee may provide
for such special terms for awards to Participants who are foreign nationals or who are employed by the Company or any Subsidiary
outside of the United States of America or who provide services to the Company or any Subsidiary under an agreement with a foreign
nation or agency, as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or
custom. Moreover, the Committee may approve such supplements to or amendments, restatements or alternative versions of this Plan
(including sub-plans) as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of this
Plan as in effect for any other purpose, and the secretary or other appropriate officer of the Company may certify any such document
as having been approved and adopted in the same manner as this Plan. No such special terms, supplements, amendments or restatements,
however, will include any provisions that are inconsistent with the terms of this Plan as then in effect unless this Plan could
have been amended to eliminate such inconsistency without further approval by the Stockholders.

 

    	 	14	 

     

    

 

15.         Transferability.

 

(a)          Except
as otherwise determined by the Committee, no Option Right, Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance
Share, Performance Unit, award contemplated by Section 9 of this Plan or dividend equivalents paid with respect
to awards made under this Plan will be transferable by the Participant except by will or the laws of descent and distribution.
In no event will any such award granted under this Plan be transferred for value. Except as otherwise determined by the Committee,
Option Rights and Appreciation Rights will be exercisable during the Participant’s lifetime only by him or her or, in the
event of the Participant’s legal incapacity to do so, by his or her guardian or legal representative acting on behalf of
the Participant in a fiduciary capacity under state law or court supervision.

 

(b)          The
Committee may specify on the Date of Grant that part or all of the shares of Common Stock that are (i) to be issued or transferred
by the Company upon the exercise of Option Rights or Appreciation Rights, upon the termination of the Restriction Period applicable
to Restricted Stock Units or upon payment under any grant of Performance Shares or Performance Units or (ii) no longer subject
to the substantial risk of forfeiture and restrictions on transfer referred to in Section 6 of this Plan, will
be subject to further restrictions on transfer, including minimum holding periods.

 

16.         Withholding
Taxes. To the extent that the Company is required to withhold federal, state, local or foreign taxes or other amounts in connection
with any payment made or benefit realized by a Participant or other Person under this Plan, and the amounts available to the Company
for such withholding are insufficient, it will be a condition to the receipt of such payment or the realization of such benefit
that the Participant or such other Person make arrangements satisfactory to the Company for payment of the balance of such taxes
or other amounts required to be withheld, which arrangements (in the discretion of the Committee) may include relinquishment of
a portion of such benefit. If a Participant’s benefit is to be received in the form of shares of Common Stock, and such Participant
fails to make arrangements for the payment of taxes or other amounts, then, unless otherwise determined by the Committee, the Company
will withhold shares of Common Stock having a value equal to the amount required to be withheld. Notwithstanding the foregoing,
when a Participant is required to pay the Company an amount required to be withheld under applicable income, employment, tax or
other laws, the Participant may elect, unless otherwise determined by the Committee, to satisfy the obligation, in whole or in
part, by having withheld, from the shares of Common Stock required to be delivered to the Participant, shares of Common Stock having
a value equal to the amount required to be withheld or by delivering to the Company other shares of Common Stock held by such Participant.
The shares of Common Stock used for tax or other withholding will be valued at an amount equal to the fair market value of such
shares of Common Stock on the date the benefit is to be included in Participant’s income. In no event will the fair market
value of the shares of Common Stock to be withheld and delivered pursuant to this Section 16 exceed the minimum
amount required to be withheld, unless (i) an additional amount can be withheld and not result in adverse accounting consequences,
(ii) such additional withholding amount is authorized by the Committee, and (iii) the total amount withheld does not
exceed the Participant’s estimated tax obligations attributable to the applicable transaction. Participants will also make
such arrangements as the Company may require for the payment of any withholding tax or other obligation that may arise in connection
with the disposition of shares of Common Stock acquired upon the exercise of Option Rights.

 

    	 	15	 

     

    

 

17.         Compliance
with Section 409A of the Code.

 

(a)          To
the extent applicable, it is intended that this Plan and any grants made hereunder comply with the provisions of Section 409A
of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Participants. This
Plan and any grants made hereunder will be administered in a manner consistent with this intent. Any reference in this Plan to
Section 409A of the Code will also include any regulations or any other formal guidance promulgated with respect to such section
by the U.S. Department of the Treasury or the Internal Revenue Service.

 

(b)          Neither
a Participant nor any of a Participant’s creditors or beneficiaries will have the right to subject any deferred compensation
(within the meaning of Section 409A of the Code) payable under this Plan and grants hereunder to any anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under Section 409A of the
Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to a Participant or for a Participant’s
benefit under this Plan and grants hereunder may not be reduced by, or offset against, any amount owed by a Participant to the
Company or any of its Subsidiaries.

 

(c)          If,
at the time of a Participant’s separation from service (within the meaning of Section 409A of the Code), (i) the
Participant will be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology
selected by the Company from time to time) and (ii) the Company makes a good faith determination that an amount payable hereunder
constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be
delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties under
Section 409A of the Code, then the Company will not pay such amount on the otherwise scheduled payment date but will instead
pay it, without interest, on the first business day of the seventh month after such separation from service.

 

(d)          Solely
with respect to any award that constitutes nonqualified deferred compensation subject to Section 409A of the Code and that
is payable on account of a Change in Control (including any installments or stream of payments that are accelerated on account
of a Change in Control), a Change in Control will occur only if such event also constitutes a “change in the ownership,”
“change in effective control,” and/or a “change in the ownership of a substantial portion of assets” of
the Company as those terms are defined under Treasury Regulation §1.409A-3(i)(5), but only to the extent necessary to establish
a time and form of payment that complies with Section 409A of the Code, without altering the definition of Change in Control
for any purpose in respect of such award.

 

    	 	16	 

     

    

 

(e)          Notwithstanding
any provision of this Plan and grants hereunder to the contrary, in light of the uncertainty with respect to the proper application
of Section 409A of the Code, the Company reserves the right to make amendments to this Plan and grants hereunder as the Company
deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the Code. In any case, a
Participant will be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a Participant
or for a Participant’s account in connection with this Plan and grants hereunder (including any taxes and penalties under
Section 409A of the Code), and neither the Company nor any of its affiliates will have any obligation to indemnify or otherwise
hold a Participant harmless from any or all of such taxes or penalties.

 

18.         Amendments.

 

(a)          The
Board may at any time and from time to time amend this Plan in whole or in part; provided, however, that if an amendment
to this Plan, for purposes of applicable stock exchange rules and except as permitted under Section 11 of this
Plan, (i) would materially increase the benefits accruing to Participants under this Plan, (ii) would materially increase
the number of securities which may be issued under this Plan, (iii) would materially modify the requirements for participation
in this Plan, or (iv) must otherwise be approved by the Stockholders in order to comply with applicable law or the rules of
the New York Stock Exchange or, if the shares of Common Stock are not traded on the New York Stock Exchange, the principal national
securities exchange upon which the shares of Common Stock are traded or quoted, all as determined by the Board, then, such amendment
will be subject to Stockholder approval and will not be effective unless and until such approval has been obtained.

 

(b)          Except
in connection with a corporate transaction or event described in Section 11 of this Plan or in connection with
a Change in Control, the terms of outstanding awards may not be amended to reduce the Option Price of outstanding Option Rights
or the Base Price of outstanding Appreciation Rights, or cancel outstanding “underwater” Option Rights or Appreciation
Rights (including following a Participant’s voluntary surrender of “underwater” Option Rights or Appreciation
Rights) in exchange for cash, other awards or Option Rights or Appreciation Rights with an Option Price or Base Price, as applicable,
that is less than the Option Price of the original Option Rights or Base Price of the original Appreciation Rights, as applicable,
without Stockholder approval. This Section 18(b) is intended to prohibit the repricing of “underwater”
Option Rights and Appreciation Rights and will not be construed to prohibit the adjustments provided for in Section 11
of this Plan. Notwithstanding any provision of this Plan to the contrary, this Section 18(b) may not be amended
without approval by the Stockholders.

 

    	 	17	 

     

    

 

(c)          If
permitted by Section 409A of the Code, but subject to the paragraph that follows, including in the case of termination of employment
or service, or in the case of unforeseeable emergency or other circumstances or in the event of a Change in Control, to the extent
a Participant holds an Option Right or Appreciation Right not immediately exercisable in full, or any Restricted Stock as to which
the substantial risk of forfeiture or the prohibition or restriction on transfer has not lapsed, or any Restricted Stock Units
as to which the Restriction Period has not been completed, or any Performance Shares or Performance Units which have not been fully
earned, or any dividend equivalents or other awards made pursuant to Section 9 of this Plan subject to any vesting
schedule or transfer restriction, or who holds shares of Common Stock subject to any transfer restriction imposed pursuant to Section 15(b)
of this Plan, the Committee may, in its sole discretion, provide for continued vesting or accelerate the time at which such Option
Right, Appreciation Right or other award may be exercised or the time at which such substantial risk of forfeiture or prohibition
or restriction on transfer will lapse or the time when such Restriction Period will end or the time at which such Performance Shares
or Performance Units will be deemed to have been fully earned or the time when such transfer restriction will terminate or may
waive any other limitation or requirement under any such award.

 

(d)          Subject
to Section 18(b) of this Plan, the Committee may amend the terms of any award theretofore granted under this
Plan prospectively or retroactively. Except for adjustments made pursuant to Section 11 of this Plan, no such
amendment will materially impair the rights of any Participant without his or her consent. The Board may, in its discretion, terminate
this Plan at any time. Termination of this Plan will not affect the rights of Participants or their successors under any awards
outstanding hereunder and not exercised in full on the date of termination.

 

19.         Governing
Law. This Plan and all grants and awards and actions taken hereunder will be governed by and construed in accordance with the
internal substantive laws of the Republic of the Marshall Islands.

 

20.         Effective
Date/Termination. This Plan will be effective as of the Effective Date. No grant will be made under this Plan on or after the
tenth anniversary of the Effective Date, but all grants made prior to such date will continue in effect thereafter subject to the
terms thereof and of this Plan.

 

21.         Miscellaneous
Provisions.

 

(a)          The
Company will not be required to issue any fractional shares of Common Stock pursuant to this Plan. The Committee may provide for
the elimination of fractions or for the settlement of fractions in cash.

 

(b)          This
Plan will not confer upon any Participant any right with respect to continuance of employment or other service with the Company
or any Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate
such Participant’s employment or other service at any time.

 

(c)          Except
with respect to Section 21(e) of this Plan, to the extent that any provision of this Plan would prevent any
Option Right that was intended to qualify as an Incentive Stock Option from qualifying as such, that provision will be null and
void with respect to such Option Right. Such provision, however, will remain in effect for other Option Rights and there will be
no further effect on any provision of this Plan.

 

    	 	18	 

     

    

 

(d)          No
award under this Plan may be exercised by the holder thereof if such exercise, and the receipt of cash or stock thereunder, would
be, in the opinion of counsel selected by the Company, contrary to law or the regulations of any duly constituted authority having
jurisdiction over this Plan.

 

(e)          Absence
on leave approved by a duly constituted officer of the Company or any of its Subsidiaries will not be considered interruption or
termination of service of any employee for any purposes of this Plan or awards granted hereunder.

 

(f)          No
Participant will have any rights as a Stockholder with respect to any shares of Common Stock subject to awards granted to him or
her under this Plan prior to the date as of which he or she is actually recorded as the holder of such shares of Common Stock upon
the stock records of the Company.

 

(g)          The
Committee may condition the grant of any award or combination of awards authorized under this Plan on the surrender or deferral
by the Participant of his or her right to receive a cash bonus or other compensation otherwise payable by the Company or a Subsidiary
to the Participant.

 

(h)          Except
with respect to Option Rights and Appreciation Rights, the Committee may permit Participants to elect to defer the issuance of
shares of Common Stock under this Plan pursuant to such rules, procedures or programs as it may establish for purposes of this
Plan and which are intended to comply with the requirements of Section 409A of the Code. The Committee also may provide that deferred
issuances and settlements include the crediting of dividend equivalents or interest on the deferral amounts.

 

(i)          If
any provision of this Plan is or becomes invalid or unenforceable in any jurisdiction, or would disqualify this Plan or any award
under any law deemed applicable by the Committee, such provision will be construed or deemed amended or limited in scope to conform
to applicable laws or, in the discretion of the Committee, it will be stricken and the remainder of this Plan will remain in full
force and effect. Notwithstanding anything in this Plan or an Evidence of Award to the contrary, nothing in this Plan or in an
Evidence of Award prevents a Participant from providing, without prior notice to the Company, information to governmental authorities
regarding possible legal violations or otherwise testifying or participating in any investigation or proceeding by any governmental
authorities regarding possible legal violations, and for purpose of clarity a Participant is not prohibited from providing information
voluntarily to the Securities and Exchange Commission pursuant to Section 21F of the Exchange Act.

 

    	 	19	 

     

    

 

22.         Stock-Based
Awards in Substitution for Awards Granted by Another Company. Notwithstanding anything in this Plan to the contrary:

 

(a)          Awards
may be granted under this Plan in substitution for or in conversion of, or in connection with an assumption of, stock options,
stock appreciation rights, restricted stock, restricted stock units or other stock or stock-based awards held by awardees of an
entity engaging in a corporate acquisition or merger transaction with the Company or any Subsidiary. Any conversion, substitution
or assumption will be effective as of the close of the merger or acquisition, and, to the extent applicable, will be conducted
in a manner that complies with Section 409A of the Code. The awards so granted may reflect the original terms of the awards being
assumed or substituted or converted for and need not comply with other specific terms of this Plan, and may account for shares
of Common Stock substituted for the securities covered by the original awards and the number of shares subject to the original
awards, as well as any exercise or purchase prices applicable to the original awards, adjusted to account for differences in stock
prices in connection with the transaction.

 

(b)          In
the event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary merges has shares
available under a pre-existing plan previously approved by stockholders and not adopted in contemplation of such acquisition or
merger, the shares available for grant pursuant to the terms of such plan (as adjusted, to the extent appropriate, to reflect such
acquisition or merger) may be used for awards made after such acquisition or merger under this Plan; provided, however,
that awards using such available shares may not be made after the date awards or grants could have been made under the terms of
the pre-existing plan absent the acquisition or merger, and may only be made to individuals who were not employees or directors
of the Company or any Subsidiary prior to such acquisition or merger.

 

(c)          Any
shares of Common Stock that are issued or transferred by, or that are subject to any awards that are granted by, or become obligations
of, the Company under Section 22(a) or 22(b) of this Plan will not reduce the shares of Common
Stock available for issuance or transfer under this Plan or otherwise count against the limits contained in Section 3
of this Plan. In addition, no shares of Common Stock subject to an award that is granted by, or becomes an obligation of, the Company
under Section 22(a) or 22(b) of this Plan will be added to the aggregate limit contained in Section 3(a)(i)
of this Plan.

 

    	 	20

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