Document:

EXHIBIT 4(c)

 

BIT DIGITAL, INC.

2021 SECOND OMNIBUS EQUITY INCENTIVE PLAN

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	PAGE
	Article 1. Effective Date, Objectives and Duration 	1
	1.1	Effective Date of the Plan	1
	1.2	Objectives of the Plan	1
	1.3	Duration of the Plan	1
	 	 	 
	Article 2. Definitions	1
	2.1	“Applicable Law”	1
	2.2	“Award”	1
	2.3	“Award Agreement”	1
	2.4	“Board”	2
	2.5	“Bonus Shares”	2
	2.6	“Cause”	2
	2.7	“CEO”	2
	2.8	“Code”	2
	2.9	“Committee”	2
	2.10	“Company”	2
	2.11	“Compensation Committee”	2
	2.12	“Corporate Transaction”	2
	2.13	“Deferred Shares”	2
	2.14	“Disability” or “Disabled”	3
	2.15	“Dividend Equivalent”	3
	2.16	“Effective Date”	3
	2.17	“Eligible Person”	3
	2.18	“Exchange Act”	3
	2.19	“Exercise Price”	3
	2.20	“Fair Market Value”	3
	2.21	“Grant Date”	4
	2.22	“Grantee”	4
	2.23	“Incentive Share Option”	4
	2.24	“Including” or “includes”	4
	2.25	means “including, without limitation,” or “includes, without limitation,” respectively.	4
	2.26	“Non-Employee Director”	4
	2.27	“Option”	4
	2.28	“Other Share-Based Award”	4
	2.29	“Performance Period”	4
	2.30	“Performance Share” and “Performance Share Unit”	4
	2.31	“Period of Restriction”	4
	2.32	“Person”	4
	2.33	“Restricted Shares”	4
	2.34	“Restricted Share Units”	4
	2.35	“Rule 16b-3”	4
	2.36	“SEC”	4
	2.37	“Section 16 Non-Employee Director”	4
	2.38	“Section 16 Person”	5
	2.39	“Share”	5
	2.40	“Share Appreciation Right” or “SAR”	5
	2.41	“Subsidiary”	5
	2.42	“Surviving Company”	5
	2.43	“Term”	5
	2.44	“Termination of Affiliation”	5

 

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TABLE OF CONTENTS

 

	 	PAGE
	Article 3. Administration 	5
	3.1	Committee	5
	3.2	Powers of Committee	6
	3.3	No Repricings	8
	 	 	 
	Article 4. Shares Subject to the Plan 	8
	4.1	Number of Shares Available for Grants	8
	4.2	Adjustments in Authorized Shares and Awards; Corporate Transaction, Liquidation or Dissolution	9
	 	 	 
	Article 5. Eligibility and General Conditions of Awards 	10
	5.1	Eligibility	10
	5.2	Award Agreement	10
	5.3	General Terms and Termination of Affiliation	10
	5.4	Nontransferability of Awards	10
	5.5	Cancellation and Rescission of Awards	11
	5.6	Stand-Alone, Tandem and Substitute Awards	11
	5.7	Compliance with Rule 16b-3	11
	5.8	Deferral of Award Payouts	12
	 	 	 
	Article 6. Share Options 	12
	6.1	Grant of Options	12
	6.2	Award Agreement	12
	6.3	Option Exercise Price	12
	6.4	Grant of Incentive Share Options	13
	6.5	Payment of Exercise Price	14
	 	 	 
	Article 7. Share Appreciation Rights 	14
	7.1	Issuance	14
	7.2	Award Agreements	14
	7.3	SAR Exercise Price	14
	7.4	Exercise and Payment	14
	 	 	 
	Article 8. Restricted Shares 	15
	8.1	Grant of Restricted Shares	15
	8.2	Award Agreement	15
	8.3	Consideration for Restricted Shares	15
	8.4	Effect of Forfeiture	15
	8.5	Escrow; Legends	15
	 	 	 
	Article 9. Performance Share Units and Performance Shares 	15
	9.1	Grant of Performance Share Units and Performance Shares	15
	9.2	Value/Performance Goals	16
	9.3	Earning of Performance Share Units and Performance Shares	16

 

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TABLE OF CONTENTS

 

	 	 	PAGE
	Article 10. Deferred Shares and Restricted Share Units 	17
	10.1	Grant of Deferred Shares and Restricted Share Units	17
	10.2	Vesting and Delivery	17
	10.3	Voting and Dividend Equivalent Rights Attributable to Deferred Shares and Restricted Share Units	17
	 	 	 
	Article 11. Dividend Equivalents 	18
	 	 	 
	Article 12. Bonus Shares 	18
	 	 	 
	Article 13. Other Share-Based Awards 	18
	 	 	 
	Article 14. Non-Employee Director Awards
	18
	 	 	 
	Article 15. Amendment, Modification, and
Termination 	19
	15.1	Amendment, Modification, and Termination	19
	15.2	Awards Previously Granted	19
	 	 	 
	Article 16. Compliance with Code Section 409A 	19
	 	 	 
	Article 17. Withholding 	19
	17.1	Required Withholding	19
	17.2	Notification under Code Section 83(b)	20
	 	 	 
	Article 18. Additional Provisions 	20
	18.1	Successors	20
	18.2	Severability	20
	18.3	Requirements of Law	20
	18.4	Securities Law Compliance	21
	18.5	Forfeiture Events	21
	18.6	No Rights as a Shareholder	21
	18.7	Nature of Payments	22
	18.8	Non-Exclusivity of Plan	22
	18.9	Governing Law	22
	18.10	Unfunded Status of Awards; Creation of Trusts	22
	18.11	Affiliation	22
	18.12	Participation	22
	18.13	Construction	22
	18.14	Headings	23
	18.15	Obligations	23
	18.16	No Right to Continue as Director	23
	18.17	Shareholder Approval	23
	18.18	Forfeiture of Shares	23
	18.19	Share Issuances	23
	18.20	No Dividends on Unvested Awards	23

 

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BIT DIGITAL, INC.

2021 SECOND OMNIBUS EQUITY INCENTIVE PLAN

 

Article 1.

Effective Date, Objectives and Duration

 

1.1 Effective
Date of the Plan. The Board of Bit Digital, Inc, an exempted company limited by shares and incorporated under the laws of the Cayman
Islands (the “Company”) adopted the Bit Digital, Inc. 2021 Second Omnibus Incentive Plan (the “Plan”) effective
as of July 29, 2021 (the “Effective Date”).

 

1.2 Objectives
of the Plan. The Plan is intended (a) to allow selected employees of and consultants to the Company and its Subsidiaries to acquire
or increase equity ownership in the Company, thereby strengthening their commitment to the success of the Company and stimulating their
efforts on behalf of the Company, and to assist the Company and its Subsidiaries in attracting new employees, officers and consultants
and retaining existing employees and consultants, (b) to optimize the profitability and growth of the Company and its Subsidiaries through
incentives which are consistent with the Company’s goals, (c) to provide Grantees with an incentive for excellence in individual
performance, (d) to promote teamwork among employees, consultants and Non-Employee Directors, and (e) to attract and retain highly qualified
persons to serve as Non-Employee Directors and to promote ownership by such Non-Employee Directors of a greater proprietary interest
in the Company, thereby aligning such Non-Employee Directors’ interests more closely with the interests of the Company’s
shareholders.

 

1.3 Duration
of the Plan. The Plan shall commence on the Effective Date and shall remain in effect, subject to the right of the Board to amend
or terminate the Plan at any time pursuant to Article 15 hereof, until the earlier of the tenth anniversary of the Effective Date, or
the date all Shares subject to the Plan shall have been purchased or acquired and the restrictions on all Restricted Shares granted under
the Plan shall have lapsed, according to the Plan’s provisions.

 

Article 2.

Definitions

 

Whenever used in the Plan,
the following terms shall have the meanings set forth below:

 

2.1 “Applicable
Law” means (i) the laws of the Cayman Islands as they relate to the Company and its Shares; (ii) the legal requirements
relating to the Plan and the Awards under applicable provisions of the corporate, securities, tax and other laws, rules, regulations
and government orders of any jurisdiction applicable to Awards granted to residents; and (iii) the rules of any applicable
securities exchange, national market system or automated quotation system on which the Shares are listed, quoted or traded.

 

2.2
“Award” means Options (including non-qualified options and Incentive Share Options), SARs, Restricted Shares,
Performance Share Units (which may be paid in cash), Performance Shares, Deferred Shares, Restricted Share Units, Dividend
Equivalents, Bonus Shares or Other Share-Based Awards granted under the Plan.

 

2.3 “Award
Agreement” means either (a) a written agreement entered into by the Company and a Grantee setting forth the terms and
provisions applicable to an Award granted under the Plan, or (b) a written statement issued by the Company to a Grantee describing
the terms and provisions of such Award, including any amendment or modification thereof. The Committee may provide for the use of
electronic, internet or other non-paper Award Agreements and the use of electronic, internet or other non-paper means for the
acceptance thereof and actions thereunder by the Grantee.

 

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2.4
“Board” means the Board of Directors of the Company, from time to time.

 

2.5 “Bonus
Shares” means Shares that are awarded to a Grantee with or without cost and without restrictions either in recognition of
past performance (whether determined by reference to another employee benefit plan of the Company or otherwise), as an inducement to
become an Eligible Person or, with the consent of the Grantee, as payment in lieu of any cash remuneration otherwise payable to the
Grantee.

 

2.6
“Cause” means, except as otherwise defined in an Award Agreement:

 

(a) the
commission of any act by a Grantee constituting a felony or crime of moral turpitude (or their equivalent in a non-United States jurisdiction);

 

(b) an
act of dishonesty, fraud, intentional misrepresentation, or harassment which, as determined in good faith by the Committee, would: (i)
materially adversely affect the business or the reputation of the Company or any of its Subsidiaries with their respective current or
prospective customers, suppliers, lenders and/or other third parties with whom such entity does or might do business; or (ii) expose the
Company or any of its Subsidiaries to a risk of civil or criminal legal damages, liabilities or penalties;

 

(c) any
material misconduct in violation of the Company’s or a Subsidiary’s written policies; or

 

(d) willful
and deliberate non-performance of the Grantee’s duties in connection with the business affairs of the Company or its Subsidiaries;

 

provided, however, that if the Grantee
has a written employment or consulting agreement with the Company or any of its Subsidiaries or participates in any severance plan established
by the Company applicable to Awards granted to the Grantee under the Plan that includes a definition of “cause” (or a substantially
equivalent term), then Cause shall have the meaning set forth in such employment or consulting agreement or severance plan.

 

2.7 “CEO”
means the Chief Executive Officer of the Company or any other named executive officer.

 

2.8 “Code”
means the Internal Revenue Code of 1986, as amended from time to time. References to a particular section of the Code include references
to regulations and rulings thereunder and to successor provisions.

 

2.9 “Committee”
has the meaning set forth in Section 3.1.

 

2.10 “Company”
means Bit Digital, Inc., an exempted company limited by shares and incorporated under the laws of the Cayman Islands.

 

2.11 “Compensation
Committee” means the compensation committee of the Board.

 

2.12 “Corporate
Transaction” has the meaning set forth in Section 4.2(b).

 

2.13 “Deferred
Shares” means a right, granted under Article 10, to receive Shares at the end of a specified deferral period.

 

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2.14 “Disability”
or “Disabled” means, unless otherwise defined in an Award Agreement, or as otherwise determined under procedures established
by the Committee for purposes of the Plan, a Grantee is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months.

 

2.15 “Dividend
Equivalent” means a right to receive payments equal to dividends or property, if and when paid or distributed, on a specified
number of Shares.

 

2.16 “Effective
Date” has the meaning set forth in Section 1.1.

 

2.17 “Eligible
Person” means any individual who is an employee (including any officer) of, a non-employee consultant to, or a Non-Employee
Director of, the Company or any Subsidiary; provided, however, that solely with respect to the grant of an Incentive Share Option, an
Eligible Person shall be any employee (including any officer) of the Company or any Subsidiary. Notwithstanding the foregoing, an Eligible
Person shall also include an individual who is expected to become an employee to, non-employee consultant of or Non-Employee Director
of the Company or any Subsidiary within a reasonable period of time after the grant of an Award (other than an Incentive Share Option);
provided that any Award granted to any such individual shall be automatically terminated and cancelled without consideration if the individual
does not begin performing services for the Company or any Subsidiary within twelve (12) months after the Grant Date. Solely for purposes
of Section 5.6(b), current or former employees or non-employee directors of, or consultants to, an Acquired Entity who receive Substitute
Awards in substitution for Acquired Entity Awards shall be considered Eligible Persons under this Plan with respect to such Substitute
Awards.

 

2.18 “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time. References to a particular section of the Exchange
Act include references to successor provisions.

 

2.19 “Exercise
Price” means (a) with respect to an Option, the price at which a Share may be purchased by a Grantee pursuant to such Option
or (b) with respect to an SAR, the price established at the time an SAR is granted pursuant to Article 7, which is used to determine the
amount, if any, of the payment due to a Grantee upon exercise of the SAR. Notwithstanding the foregoing, the Exercise Price may never
be less than the par value per Share of US$0.01.

 

2.20 “Fair
Market Value” means, as of any date, unless otherwise specifically provided in an Award Agreement, the value of Shares determined
as follows:

 

(a) If
the Shares are listed on one or more established and regulated securities exchanges, national market systems or automated quotation systems
on which Shares are listed, quoted or traded, Fair Market Value means a price that is based on the opening, closing, actual, high, low,
or the arithmetic mean of selling prices of a Share reported on the principal exchange or system on which the Shares are traded on the
applicable date or the preceding trading day.

 

(b) If
the Shares are traded over the counter at the time a determination of Fair Market Value is required to be made hereunder, Fair Market
Value shall be deemed to be equal to the arithmetic mean between the reported high and low or closing bid and asked prices of a Share
on the applicable date, or if no such trades were made that day then the most recent date on which Shares were publicly traded.

 

(c) In
the event Shares are not publicly traded at the time a determination of their value is required to be made hereunder, the determination
of their Fair Market Value shall be made by the Committee in such manner as it deems appropriate.

 

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2.21 “Grant
Date” means the date on which an Award is granted or such later date as specified in advance by the Committee.

 

2.22 “Grantee”
means a person who has been granted an Award.

 

2.23 “Incentive
Share Option” means an Option that is intended to meet the requirements of Section 422 of the Code.

 

2.24 “Including”
or “includes” means “including, without limitation,” or “includes, without limitation,” respectively.

 

2.25 “Non-Employee
Director” means a member of the Board who is not an employee of the Company or any Subsidiary.

 

2.26 “Option”
means an option granted under Article 6 of the Plan.

 

2.27 “Other
Share-Based Award” means a right, granted under Article 13 hereof, that relates to or is valued by reference to Shares or other
Awards relating to Shares.

 

2.28 “Performance
Period”means, with respect to an Award of Performance Shares or Performance Share Units, the period of time during which the
performance vesting conditions applicable to such Award must be satisfied.

 

2.29 “Performance
Share” and “Performance Share Unit”have the respective meanings set forth in Article 9.

 

2.30 “Period
of Restriction” means the period during which Restricted Shares are subject to forfeiture if the conditions specified in the
Award Agreement are not satisfied.

 

2.31 “Person”
means any individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, entity or government instrumentality, division, agency, body or department.

 

2.32 “Restricted
Shares” means Shares, granted under Article 8, that are both subject to forfeiture and are nontransferable if the Grantee does
not satisfy the conditions specified in the Award Agreement applicable to such Shares.

 

2.33 “Restricted
Share Units” are rights, granted under Article 10, to receive Shares if the Grantee satisfies the conditions specified in the
Award Agreement applicable to such rights.

 

2.34 “Rule
16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act, as amended from time to time, together with any successor
rule.

 

2.35 “SEC”
means the United States Securities and Exchange Commission, or any successor thereto.

 

2.36 “Section
16 Non-Employee Director” means a member of the Board who satisfies the requirements to qualify as a “non-employee director”
under Rule 16b-3.

 

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2.37 “Section
16 Person” means a person who is subject to potential liability under Section 16(b) of the Exchange Act with respect to transactions
involving equity securities of the Company.

 

2.38 “Share”
means an ordinary share of the Company, par value US$0.01, and such other securities of the Company, as may be substituted or resubstituted
for Shares pursuant to Section 4.2 hereof.

 

2.39 “Share
Appreciation Right” or “SAR” means an Award granted under Article 7 of the Plan.

 

2.40 “Subsidiary”
means any corporation or other entity, including but not limited to partnerships, limited liability companies, exempted companies and
joint ventures, with respect to which the Company, directly or indirectly, owns as applicable (a) shares possessing more than fifty percent
(50%) of the total combined voting power of all classes of shares entitled to vote, or more than fifty percent (50%) of the total value
of all shares of all classes of shares of such corporation, or (b) an aggregate of more than fifty percent (50%) of the profits interest
or capital interest of a non-corporate entity.

 

2.41 “Surviving
Company” means (a) the surviving entity in any merger, consolidation or similar transaction, involving the Company (including
the Company if the Company is the surviving entity), (b) or the direct or indirect parent company of such surviving entity or (c) the
direct or indirect parent company of the Company following a sale of substantially all of the issued and outstanding Shares of the Company.

 

2.42 “Term”
of any Option or SAR means the period beginning on the Grant Date of an Option or SAR and ending on the date such Option or SAR expires,
terminates or is cancelled. No Option or SAR granted under this Plan shall have a Term exceeding 10 years.

 

2.43 “Termination
of Affiliation” occurs on the first day on which an individual is for any reason no longer performing services for the Company
or any Subsidiary in the capacity of an employee of, a non-employee consultant to, or a Non-Employee Director of, the Company or any Subsidiary
or with respect to an individual who is an employee of, a non-employee consultant to or a Non-Employee Director of a Subsidiary, the first
day on which such entity ceases to be a Subsidiary of the Company unless such individual continues to perform Services for the Company
or another Subsidiary without interruption after such entity ceases to be a Subsidiary.

 

Article 3.

Administration

 

3.1 Committee.

 

(a) Subject
to Article 14, and to subsection (b) and to Section 3.2, the Plan shall be administered by the Compensation Committee. In the event that
the Board determines that the Compensation Committee shall not be the administrator of the Plan, the term “Committee” as used
hereunder shall (except as provided for in subsection (b)) mean the committee of the Board designated to administer the Plan, or the full
Board should the Board so designate. The Committee may delegate to the CEO any or all of the authority of the Committee with respect to
Awards to Grantees other than Grantees who are executive officers, Non-Employee Directors, or Section 16 Persons at the time any such
delegated authority is exercised.

 

(b) Unless
the context requires otherwise, any references herein to “Committee” include references to the CEO to the extent the CEO has
been delegated authority pursuant to subsection (a); provided that (i) for purposes of Awards to Non-Employee Directors, “Committee”
shall include only the full Board, and (ii) for purposes of Awards intended to comply with Rule 16b-3, the “Committee” shall
include only the Compensation Committee.

 

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3.2 Powers of Committee.
Subject to and consistent with the provisions of the Plan (including Article 14), the Committee has full and final authority and sole
discretion as follows; provided that any such authority or discretion exercised with respect to a specific Non-Employee Director shall
be approved by a majority of the members of the Board, but excluding the Non-Employee Director with respect to whom such authority or
discretion is exercised:

 

(a) to
determine when, to whom and in what types and amounts Awards should be granted;

 

(b) to
grant Awards to Eligible Persons in any number and to determine the terms and conditions applicable to each Award (including the number
of Shares or the amount of cash or other property to which an Award will relate, any Exercise Price or purchase price, any limitation
or restriction, any schedule for or performance conditions relating to the earning of the Award or the lapse of limitations, forfeiture
restrictions, restrictions on exercisability or transferability, any performance goals including those relating to the Company and/or
a Subsidiary and/or any division thereof and/or an individual, and/or vesting based on the passage of time, based in each case on such
considerations as the Committee shall determine);

 

(c) to
determine the benefit payable, including where applicable the number of Shares issued, under any Performance Share Unit, Performance Share,
Dividend Equivalent, Other Share-Based Award or Cash Incentive Award and to determine whether any performance or vesting conditions have
been satisfied;

 

(d) to
determine whether or not specific Awards shall be granted in connection with other specific Awards, and if so, whether they shall be exercisable
cumulatively with, or alternatively to, such other specific Awards and all other matters to be determined in connection with an Award;

 

(e) to
determine the Term of any Option or SAR;

 

(f) to
determine the amount, if any, that a Grantee shall pay for Restricted Shares, whether to permit or require the payment of cash dividends
thereon to be deferred and the terms related thereto, when Restricted Shares (including Restricted Shares acquired upon the exercise of
an Option) shall be forfeited and whether such shares shall be held in escrow;

 

(g) to
determine whether, to what extent and under what circumstances an Award may be settled in, or the exercise price of an Award may be paid
in, cash, Shares, other Awards or other property, or an Award may be accelerated, vested, canceled, forfeited or surrendered or any terms
of the Award may be waived, and to accelerate the exercisability of, and to accelerate or waive any or all of the terms and conditions
applicable to, any Award or any group of Awards for any reason and at any time;

 

(h) to
determine with respect to Awards granted to Eligible Persons whether, to what extent and under what circumstances cash, Shares, other
Awards, other property and other amounts payable with respect to an Award will be deferred, either at the election of the Grantee or automatically
pursuant to the terms of the Award Agreement;

 

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(i) to
offer to exchange or buy out any previously granted Award for a payment in cash, Shares or other Award;

 

(j) to
construe and interpret the Plan and to make all determinations, including factual determinations, necessary or advisable for the administration
of the Plan;

 

(k) to
make, amend, suspend, waive and rescind rules and regulations relating to the Plan;

 

(l) to
appoint such agents as the Committee may deem necessary or advisable to administer the Plan;

 

(m) to
determine the terms and conditions of all Award Agreements applicable to Eligible Persons (which need not be identical) and, with the
consent of the Grantee, to amend any such Award Agreement at any time, among other things, to permit transfers of such Awards to the extent
permitted by the Plan; provided that the consent of the Grantee shall not be required for any amendment (i) which does not adversely affect
the rights of the Grantee, or (ii) which is necessary or advisable (as determined by the Committee) to carry out the purpose of the Award
as a result of any new Applicable Law or change in an existing Applicable Law, or (iii) to the extent the Award Agreement specifically
permits amendment without consent;

 

(n) to
cancel, with the consent of the Grantee, outstanding Awards and to grant new Awards in substitution therefor;

 

(o) to
impose such additional terms and conditions upon the grant, exercise or retention of Awards as the Committee may, before or concurrently
with the grant thereof, deem appropriate, including limiting the percentage of Awards which may from time to time be exercised by a Grantee;

 

(p) to
make adjustments in the terms and conditions of, and the criteria in, Awards in recognition of unusual or nonrecurring events (including
events described in Section 4.2) affecting the Company or a Subsidiary or the financial statements of the Company or a Subsidiary, or
in response to changes in Applicable Law, regulations or accounting principles;

 

(q) to
correct any defect or supply any omission or reconcile any inconsistency, and to construe and interpret the Plan, the rules and regulations,
and Award Agreement or any other instrument entered into or relating to an Award under the Plan; and

 

(r) to
take any other action with respect to any matters relating to the Plan for which it is responsible and to make all other decisions and
determinations as may be required under the terms of the Plan or as the Committee may deem necessary or advisable for the administration
of the Plan.

 

Any action of the Committee
with respect to the Plan shall be final, conclusive and binding on all persons, including the Company, its Subsidiaries, any Grantee,
any person claiming any rights under the Plan from or through any Grantee, and shareholders. If not specified in the Plan, the time at
which the Committee must or may make any determination shall be determined by the Committee, and any such determination may thereafter
be modified by the Committee. The express grant of any specific power to the Committee, and the taking of any action by the Committee,
shall not be construed as limiting any power or authority of the Committee. Subject to Section 3.1(b), the Committee may delegate to officers
of the Company or any Subsidiary the authority, subject to such terms as the Committee shall determine, to perform specified functions
under the Plan.

 

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3.3 No Repricings. Notwithstanding any
provision in Section 3.2 to the contrary, the terms of any outstanding Option or SAR may not be amended to reduce the Exercise Price
of such Option or SAR or cancel any outstanding Option or SAR in exchange for other Options or SARs with an Exercise Price that is less
than the Exercise Price of the cancelled Option or SAR or for any cash payment (or Shares having a Fair Market Value) in an amount that
exceeds the excess of the Fair Market Value of the Shares underlying such cancelled Option or SAR over the aggregate Exercise Price of
such Option or SAR or for any other Award, without shareholder approval; provided, however, that the restrictions set forth in this Section
3.3, shall not apply (i) unless the Company has a class of shares that is registered under Section 12 of the Exchange Act or (ii) to
any adjustment allowed under to Section 4.2.

 

Article 4.

Shares Subject to the Plan

 

4.1 Number of Shares Available for Grants.

 

(a) Subject
to adjustment as provided in Section 4.2 and except as provided in Section 5.6(b), the maximum number of Shares hereby reserved for issuance
under the Plan (including Incentive Share Options) shall be five million (5,000,000) Shares.

 

(b) If
any Shares subject to an Award granted hereunder (other than a Substitute Award granted pursuant to Section 5.6(b)) are forfeited or such
Award otherwise terminates without payment or delivery of such Shares, the Shares subject to such Award, to the extent of any such forfeiture
or termination, shall again be available for grant under the Plan except where otherwise specified hereunder. For avoidance of doubt,
however, if any Shares subject to an Award granted hereunder are withheld or applied as payment in connection with the exercise of an
Award or the withholding or payment of taxes related thereto (“Returned Shares”), such Returned Shares will be treated as
having been delivered for purposes of determining the maximum number of Shares available for grant under the Plan and shall not again
be treated as available for grant under the Plan. Moreover, the number of Shares available for issuance under the Plan may not be increased
through the Company’s purchase of Shares on the open market with the proceeds obtained from the exercise of any Options granted
hereunder. Upon settlement of an SAR, the number of Shares underlying the portion of the SAR that is exercised will be treated as having
been delivered for purposes of determining the maximum number of Shares available for grant under the Plan and shall not again be treated
as available for issuance under the Plan.

 

(c) Shares
issued pursuant to the Plan may be, in whole or in part, authorized and unissued Shares, or treasury Shares, including Shares repurchased
by the Company for purposes of the Plan. Additionally, at the discretion of the Committee, any Shares distributed pursuant to an Award
may be represented by American Depositary Shares.

 

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4.2 Adjustments in Authorized
Shares and Awards; Corporate Transaction, Liquidation or Dissolution.

 

(a) Adjustment
in Authorized Shares and Awards. In the event that the Committee determines that any dividend or other distribution (whether in the
form of cash, equity, or other property), recapitalization, forward or reverse share split, subdivision, consolidation or reduction of
capital, reorganization, merger, consolidation, scheme of arrangement, split-up, spin-off or combination involving the Company or repurchase
or exchange of Shares or other securities of the Company or other rights to purchase Shares or other securities of the Company, or other
similar corporate transaction or event affects the Shares such that any adjustment is determined by the Committee to be appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the
Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or other securities
or property) with respect to which Awards may be granted, (ii) the number and type of Shares (or other securities or property) subject
to outstanding Awards, (iii) the Exercise Price with respect to any Option or SAR or, if deemed appropriate, make provision for a cash
payment to the holder of an outstanding Award, and (iv) the number and kind of Shares of outstanding Restricted Shares, or the Shares
underlying any other form of Award. Notwithstanding the foregoing, no such adjustment shall be authorized with respect to any Options
or SARs to the extent that such adjustment would cause the Option or SAR to violate Section 424(a) of the Code or otherwise subject any
Grantee to taxation under Section 409A of the Code; and provided further that the number of Shares subject to any Award denominated
in Shares shall always be a whole number.

 

(b) Merger,
Consolidation or Similar Corporate Transaction. In the event of a merger or consolidation of the Company with or into another entity
or a sale of substantially all of the Shares of the Company (a “Corporate Transaction”), unless an outstanding Award is assumed
by the Surviving Company or replaced with an equivalent Award granted by the Surviving Company in substitution for such outstanding Award,
the Committee shall cancel any outstanding Awards that are not vested and non-forfeitable as of the consummation of such Corporate Transaction
(unless the Committee accelerates the vesting of any such Awards) and with respect to any vested and non-forfeitable Awards, the Committee
may either (i) allow all Grantees to exercise such Awards of Options and SARs within a reasonable period prior to the consummation of
the Corporate Transaction and cancel any outstanding Options or SARs that remain unexercised upon consummation of the Corporate Transaction,
or (ii) cancel any or all of such outstanding Awards in exchange for a payment (in cash, or in securities or other property) in an amount
equal to the amount that the Grantee would have received (net of the Exercise Price with respect to any Options or SARs) if such vested
Awards were settled or distributed or such vested Options and SARs were exercised immediately prior to the consummation of the Corporate
Transaction. Notwithstanding the foregoing, if an Option or SAR is not assumed by the Surviving Company or replaced with an equivalent
Award issued by the Surviving Company and the Exercise Price with respect to any outstanding Option or SAR exceeds the Fair Market Value
of the Shares immediately prior to the consummation of the Corporation Transaction, such Awards shall be cancelled without any payment
to the Grantee.

 

(c) Liquidation,
Winding-Up or Dissolution of the Company. In the event of the proposed liquidation, winding-up or dissolution of the Company, each
Award will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Committee. Additionally,
the Committee may, in the exercise of its sole discretion, cause Awards to be vested and non-forfeitable and cause any conditions on any
such Award to lapse, as to all or any part of such Award, including Shares as to which the Award would not otherwise be exercisable or
non-forfeitable and allow all Grantees to exercise such Awards of Options and SARs within a reasonable period prior to the consummation
of such proposed action. Any Awards that remain unexercised upon consummation of such proposed action shall be cancelled.

 

    -9-

     

    

 

Article 5.

Eligibility and General Conditions of Awards

 

5.1 Eligibility. The Committee may in its
discretion grant Awards to any Eligible Person, whether or not he or she has previously received an Award; provided, however, that all
Awards made to Non-Employee Directors shall be determined by the Board in its sole discretion.

 

5.2 Award Agreement.
To the extent not set forth in the Plan, the terms and conditions of each Award shall be set forth in an Award Agreement.

 

5.3 General Terms and
Termination of Affiliation. The Committee may impose on any Award or the exercise or settlement thereof, at the date of grant or,
subject to the provisions of Section 15.2, thereafter, such additional terms and conditions not inconsistent with the provisions of the
Plan as the Committee shall determine, including terms requiring forfeiture, acceleration or pro-rata acceleration of Awards in the event
of a Termination of Affiliation by the Grantee. Awards may be granted for no consideration other than prior and future services. Except
as set forth in an Award Agreement or as otherwise determined by the Committee, (a) all Options and SARs that are not vested and exercisable
at the time of a Grantee’s Termination of Affiliation, and any other Awards that remain subject to a risk of forfeiture or which
are not otherwise vested at the time of the Grantee’s Termination of Affiliation shall be forfeited to the Company and (b) all
outstanding Options and SARs not previously exercised shall expire three months after the Grantee’s Termination of Affiliation.
Notwithstanding the foregoing, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate any
Applicable Law.

 

5.4 Non-transferability of Awards.

 

(a) Each
Award and each right under any Award shall be exercisable only by the Grantee during the Grantee’s lifetime, or, if permissible
under Applicable Law, by the Grantee’s guardian or legal representative.

 

(b) No
Award (prior to the time, if applicable, Shares are delivered in respect of such Award), and no right under any Award, may be assigned,
alienated, pledged, mortgaged, encumbered, attached, sold or otherwise transferred or encumbered by a Grantee otherwise than by will or
by the laws of descent and distribution (or in the case of Restricted Shares, to the Company), and any such purported assignment, alienation,
pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Subsidiary; provided that
the designation of a beneficiary to receive benefits in the event of the Grantee’s death shall not constitute an assignment, alienation,
pledge, attachment, sale, transfer or encumbrance.

 

(c) Notwithstanding
subsections (a) and (b) above, to the extent provided in the Award Agreement or as otherwise approved by the Committee, Options (other
than Incentive Share Options) and Restricted Shares, may be transferred, without consideration, to a Permitted Transferee. For this purpose,
a “Permitted Transferee” in respect of any Grantee means any member of the Immediate Family of such Grantee, any trust of
which all of the primary beneficiaries are such Grantee or members of his or her Immediate Family, or any partnership (including limited
liability companies and similar entities) of which all of the partners or members are such Grantee or members of his or her Immediate
Family; and the “Immediate Family” of a Grantee means the Grantee’s spouse, children, stepchildren, grandchildren, parents,
stepparents, siblings, grandparents, nieces and nephews. Such Option may be exercised by such transferee in accordance with the terms
of the Award Agreement. If so determined by the Committee, a Grantee may, in the manner established by the Committee, designate a beneficiary
or beneficiaries to exercise the rights of the Grantee, and to receive any distribution with respect to any Award upon the death of the
Grantee. A transferee, beneficiary, guardian, legal representative or other person claiming any rights under the Plan from or through
any Grantee shall be subject to and consistent with the provisions of the Plan and any applicable Award Agreement, except to the extent
the Plan and Award Agreement otherwise provide with respect to such persons, and to any additional restrictions or limitations deemed
necessary or appropriate by the Committee.

 

    -10-

     

    

 

5.5 Cancellation and Rescission
of Awards. Unless the Award Agreement specifies otherwise, the Committee may cancel, rescind, suspend, withhold, or otherwise limit
or restrict any unexercised Award at any time if the Grantee is not in compliance with all applicable provisions of the Award Agreement
and the Plan or if the Grantee has a Termination of Affiliation.

 

5.6 Stand-Alone, Tandem and Substitute Awards.

 

(a) Awards
granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution
for, any other Award granted under the Plan unless such tandem or substitution Award would subject the Grantee to tax penalties imposed
under Section 409A of the Code. If an Award is granted in substitution for another Award or any non-Plan award or benefit, the Committee
shall require the surrender of such other Award or non-Plan award or benefit in consideration for the grant of the new Award. Awards granted
in addition to or in tandem with other Awards or non-Plan awards or benefits may be granted either at the same time as or at a different
time from the grant of such other Awards or non-Plan awards or benefits; provided, however, that if any SAR is granted in tandem with
an Incentive Share Option, such SAR and Incentive Share Option must have the same Grant Date, Term and the Exercise Price of the SAR may
not be less than the Exercise Price of the Incentive Share Option.

 

(b) The
Committee may, in its discretion and on such terms and conditions as the Committee considers appropriate in the circumstances, grant Awards
under the Plan (“Substitute Awards”) in substitution for Shares and Share-based awards (“Acquired Entity Awards”)
held by current or former employees or non-employee directors of, or consultants to, another corporation or entity who become Eligible
Persons as the result of a merger or consolidation of the employing corporation or other entity (the “Acquired Entity”) with
the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or shares of the Acquired Entity immediately
prior to such merger, consolidation or acquisition in order to preserve for the Grantee the economic value of all or a portion of such
Acquired Entity Award at such price as the Committee determines necessary to achieve preservation of economic value. The limitations in
Section 4.1(a) on the number of Shares reserved or available for grants shall not apply to Substitute Awards granted under this Section
5.6(b).

 

5.7 Compliance with Rule
16b-3. The provisions of this Section 5.7 will not apply unless and until the Company has a class of Shares that is registered under
Section 12 of the Exchange Act and fails to qualify as a foreign private issuer as defined therein.

 

(a) Six-Month
Holding Period Advice. Unless a Grantee could otherwise dispose of or exercise a derivative security or dispose of Shares issued
under the Plan without incurring liability under Section 16(b) of the Exchange Act, the Committee may advise or require a Grantee to
comply with the following in order to avoid incurring liability under Section 16(b) of the Exchange Act: (i) at least six months must
elapse from the date of acquisition of a derivative security under the Plan to the date of disposition of the derivative security (other
than upon exercise or conversion) or its underlying equity security, and (ii) Shares granted or awarded under the Plan other than upon
exercise or conversion of a derivative security must be held for at least six months from the date of grant of an Award.

 

    -11-

     

    

 

(b) Reformation
to Comply with Exchange Act Rules. To the extent the Committee determines that a grant or other transaction by a Section 16 Person
should comply with applicable provisions of Rule 16b-3 (except for transactions exempted under alternative Exchange Act rules), the Committee
shall take such actions as necessary to make such grant or other transaction so comply, and if any provision of this Plan or any Award
Agreement relating to a given Award does not comply with the requirements of Rule 16b-3 as then applicable to any such grant or transaction,
such provision will be construed or deemed amended, if the Committee so determines, to the extent necessary to conform to the then applicable
requirements of Rule 16b-3.

 

(c) Rule 16b-3
Administration. Any function relating to a Section 16 Person shall be performed solely by the Committee or the Board if necessary
to ensure compliance with applicable requirements of Rule 16b-3, to the extent the Committee determines that such compliance is desired.
Each member of the Committee or person acting on behalf of the Committee shall be entitled to, in good faith, rely or act upon any report
or other information furnished to him by any officer, manager or other employee of the Company or any Subsidiary, the Company’s
independent certified public accountants or any executive compensation consultant or attorney or other professional retained by the Company
to assist in the administration of the Plan.

 

5.8 Deferral of Award
Payouts. The Committee may permit a Grantee to defer, or if and to the extent specified in an Award Agreement require the Grantee
to defer, receipt of the payment of cash or the delivery of Shares that would otherwise be due by virtue of the lapse or waiver of restrictions
with respect to Restricted Share Units, the satisfaction of any requirements or goals with respect to Performance Share Units or Performance
Shares, the lapse or waiver of the deferral period for Deferred Shares, or the lapse or waiver of restrictions with respect to Other
Share-Based Awards or Cash Incentive Awards. If the Committee permits such deferrals, the Committee shall establish rules and procedures
for making such deferral elections and for the payment of such deferrals. Except as otherwise provided in an Award Agreement, any payment
or any Shares that are subject to such deferral shall be made or delivered to the Grantee as specified in the Award Agreement or pursuant
to the Grantee’s deferral election.

 

Article 6.

Share Options

 

6.1 Grant of Options.
Subject to and consistent with the provisions of the Plan, Options may be granted to any Eligible Person in such number, and upon such
terms, and at any time and from time to time as shall be determined by the Committee.

 

6.2 Award Agreement.
Each Option grant shall be evidenced by an Award Agreement that shall specify the Exercise Price, the Term of the Option, the number
of Shares to which the Option pertains, the time or times at which such Option shall be exercisable and such other provisions as the
Committee shall determine.

 

6.3 Option Exercise Price.
The Exercise Price of an Option under this Plan shall be determined in the sole discretion of the Committee but may not be less than
100% of the Fair Market Value of a Share on the Grant Date.

 

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6.4 Grant of Incentive
Share Options. At the time of the grant of any Option, the Committee may in its discretion designate that such Option shall be made
subject to additional restrictions to permit it to qualify as an Incentive Share Option. Any Option designated as an Incentive Share
Option:

 

(a) shall
be granted only to an employee of the Company or a Subsidiary;

 

(b) shall
have an Exercise Price of not less than 100% of the Fair Market Value of a Share on the Grant Date, and, if granted to a person who owns
Shares (including Shares treated as owned under Section 424(d) of the Code) possessing more than 10% of the total combined voting power
of all classes of shares of the Company or any Subsidiary (a “More Than 10% Owner”), have an Exercise Price not less than
110% of the Fair Market Value of a Share on its Grant Date;

 

(c) shall
be for a period of not more than 10 years (five years if the Grantee is a More Than 10% Owner) from its Grant Date, and shall be subject
to earlier termination as provided herein or in the applicable Award Agreement;

 

(d) shall
not have an aggregate Fair Market Value (as of the Grant Date) of the Shares with respect to which Incentive Share Options (whether granted
under the Plan or any other share option plan of the Grantee’s employer or any parent or Subsidiary (“Other Plans”))
are exercisable for the first time by such Grantee during any calendar year (“Current Grant”), determined in accordance with
the provisions of Section 422 of the Code, which exceeds US$100,000 (the “$100,000 Limit”);

 

(e) shall,
if the aggregate Fair Market Value of the Shares (determined on the Grant Date) with respect to the Current Grant and all Incentive Share
Options previously granted under the Plan and any Other Plans which are exercisable for the first time during a calendar year (“Prior
Grants”) would exceed the $100,000 Limit, be, as to the portion in excess of the $100,000 Limit, exercisable as a separate option
that is not an Incentive Share Option at such date or dates as are provided in the Current Grant;

 

(f) shall
require the Grantee to notify the Committee of any disposition of any Shares issued pursuant to the exercise of the Incentive Share Option
under the circumstances described in Section 421(b) of the Code (relating to holding periods and certain disqualifying dispositions) (“Disqualifying
Disposition”) within 10 days of such a Disqualifying Disposition;

 

(g) shall
by its terms not be assignable or transferable other than by will or the laws of descent and distribution and may be exercised, during
the Grantee’s lifetime, only by the Grantee; provided, however, that the Grantee may, to the extent provided in the Plan in any
manner specified by the Committee, designate in writing a beneficiary to exercise his or her Incentive Share Option after the Grantee’s
death; and

 

(h) shall,
if such Option nevertheless fails to meet the foregoing requirements, or otherwise fails to meet the requirements of Section 422 of the
Code for an Incentive Share Option, be treated for all purposes of this Plan, except as otherwise provided in subsections (d) and (e)
above, as an Option that is not an Incentive Share Option.

 

Notwithstanding the foregoing
and Section 3.2, the Committee may, without the consent of the Grantee, at any time before the exercise of an Option (whether or not an
Incentive Share Option), take any action necessary to prevent such Option from being treated as an Incentive Share Option.

 

    -13-

     

    

 

6.5 Payment of Exercise
Price. Except as otherwise provided in an Award Agreement, Options shall be exercised by the delivery of a written notice of exercise
to the Company, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for
the Shares made by any one or more of the following means:

 

(a) cash,
personal check or wire transfer;

 

(b) with
the approval of the Committee, delivery of Shares owned by the Grantee prior to exercise, valued at Fair Market Value on the date of exercise;

 

(c) with
the approval of the Committee, Shares acquired upon the exercise of such Option, such Shares valued at Fair Market Value on the date of
exercise;

 

(d) with
the approval of the Committee, Restricted Shares held by the Grantee prior to the exercise of the Option, valued at Fair Market Value
on the date of exercise; or

 

(e) subject
to Applicable Law (including the prohibited loan provisions of Section 402 of the Sarbanes Oxley Act of 2002 if applicable), through the
sale of the Shares acquired on exercise of the Option through a broker-dealer to whom the Grantee has submitted an irrevocable notice
of exercise and irrevocable instructions to deliver promptly to the Company the amount of sale proceeds sufficient to pay for such Shares,
together with, if requested by the Company, the amount of federal, state, local or foreign withholding taxes payable by Grantee by reason
of such exercise.

 

The Committee may in its discretion
specify that, if any Restricted Shares (“Tendered Restricted Shares”) are used to pay the Exercise Price, (x) all the Shares
acquired on exercise of the Option shall be subject to the same restrictions as the Tendered Restricted Shares, determined as of the date
of exercise of the Option, or (y) a number of Shares acquired on exercise of the Option equal to the number of Tendered Restricted Shares
shall be subject to the same restrictions as the Tendered Restricted Shares, determined as of the date of exercise of the Option.

 

Article 7.

Share Appreciation Rights

 

7.1 Issuance. Subject
to and consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant SARs to any Eligible Person
either alone or in addition to other Awards granted under the Plan. Such SARs may, but need not, be granted in connection with a specific
Option granted under Article 6. The Committee may impose such conditions or restrictions on the exercise of any SAR as it shall deem
appropriate.

 

7.2 Award Agreements.
Each SAR grant shall be evidenced by an Award Agreement in such form as the Committee may approve and shall contain such terms and conditions
not inconsistent with other provisions of the Plan as shall be determined from time to time by the Committee.

 

7.3 SAR Exercise Price.
The Exercise Price of a SAR shall be determined by the Committee in its sole discretion; provided that the Exercise Price shall not be
less than 100% of the Fair Market Value of a Share on the date of the grant of the SAR.

 

7.4 Exercise and Payment.
Upon the exercise of an SAR, a Grantee shall be entitled to receive payment from the Company in an amount determined by multiplying:

 

(a) The
excess of the Fair Market Value of a Share on the date of exercise over the Exercise Price; by

 

(b) The
number of Shares with respect to which the SAR is exercised.

 

SARs shall be deemed exercised
on the date written notice of exercise in a form acceptable to the Committee is received by the Company. The Company shall make payment
in respect of any SAR within five (5) days of the date the SAR is exercised. Any payment by the Company in respect of a SAR may be made
in cash, Shares, other property, or any combination thereof, as the Committee, in its sole discretion, shall determine or, to the extent
permitted under the terms of the applicable Award Agreement, at the election of the Grantee.

 

    -14-

     

    

 

Article 8.

Restricted Shares

 

8.1 Grant of Restricted
Shares. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from time to time, may grant Restricted
Shares to any Eligible Person in such amounts as the Committee shall determine.

 

8.2 Award Agreement.
Each grant of Restricted Shares shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number
of Restricted Shares granted, and such other provisions as the Committee shall determine. The Committee may impose such conditions and/or
restrictions on any Restricted Shares granted pursuant to the Plan as it may deem advisable, including restrictions based upon the achievement
of specific performance goals, time-based restrictions on vesting following the attainment of the performance goals, and/or restrictions
under applicable securities laws; provided that such conditions and/or restrictions may lapse, if so determined by the Committee, in
the event of the Grantee’s Termination of Affiliation due to death, Disability, or involuntary termination by the Company or a
Subsidiary without Cause.

 

8.3 Consideration for
Restricted Shares. The Committee shall determine the amount, if any, that a Grantee shall pay for Restricted Shares.

 

8.4 Effect of Forfeiture.
If Restricted Shares are forfeited, and if the Grantee was required to pay for such shares or acquired such Restricted Shares upon the
exercise of an Option, the Grantee shall be deemed to have resold such Restricted Shares to the Company at a price equal to the lesser
of (x) the amount paid by the Grantee for such Restricted Shares, or (y) the Fair Market Value of a Share on the date of such forfeiture.
The Company shall pay to the Grantee the deemed sale price as soon as is administratively practical. Such Restricted Shares shall cease
to be outstanding and shall no longer confer on the Grantee thereof any rights as a shareholder of the Company, from and after the date
of the event causing the forfeiture, whether or not the Grantee accepts the Company’s tender of payment for such Restricted Shares.

 

8.5 Escrow; Legends.
The Committee may provide that the certificates (if any) for any Restricted Shares (x) shall be held (together with a share transfer
power executed in blank by the Grantee) in escrow by the Company until such Restricted Shares become non-forfeitable or are forfeited
and/or (y) shall bear an appropriate legend restricting the transfer of such Restricted Shares under the Plan. If any Restricted Shares
become non-forfeitable, the Company shall cause certificates (if any) for such shares to be delivered without such legend.

 

Article 9.

Performance Share Units and Performance Shares

 

9.1 Grant of Performance
Share Units and Performance Shares. Subject to and consistent with the provisions of the Plan, Performance Share Units or Performance
Shares may be granted to any Eligible Person in such amounts and upon such terms, and at any time and from time to time, as shall be
determined by the Committee. The Committee shall have the authority, at the time of grant of any Award under this Plan, to designate
such Award as an Award intended to qualify as “performance-based compensation” under Section 162(m) of the Code. The
Committee shall also have the authority to make an award of a cash bonus to any Grantee and designate such Award as an Award intended
to qualify as “performance-based compensation” under Section 162(m) of the Code.

 

    -15-

     

    

 

9.2 Value/Performance
Goals. The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine
the number or value of Performance Units or Performance Shares that will be paid to the Grantee.

 

(a) Performance
Unit. Each Performance Unit shall have an initial value that is established by the Committee at the time of grant.

 

(b) Performance
Share. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant.

 

9.3 Earning of Performance
Share Units and Performance Shares.

 

(a) After
the applicable Performance Period has ended, the holder of Performance Units or Performance Shares shall be entitled to payment based
on the level of achievement of performance goals set by the Committee. In determining the actual amount of an individual Grantee’s
performance compensation Award for a Performance Period, the Committee may reduce or eliminate the amount of the performance compensation
Award earned during the Performance Period through the use of negative discretion (consistent with Section 162(m) of the Code) if,
in its sole judgment, such reduction or elimination is appropriate. The Committee shall not have the discretion, except as is otherwise
provided in this Plan, to (A) grant or provide payment in respect of performance compensation Awards for a Performance Period if
the performance goals for such Performance Period have not been attained; or (B) increase a performance compensation Award above
the applicable overall share issuance limitations set forth in this Plan.

 

(b) The
performance criteria that will be used to establish the performance goal(s) required to be achieved for the vesting of Performance Share
Units or Performance Shares shall be based on the attainment of specific levels of performance of the Company and/or one or more Affiliates,
divisions or operational units, or any combination of the foregoing, as determined by the Committee, which criteria will be based on one
or more of the following business criteria or any combination thereof: (i) revenue; (ii) sales; (iii) profit (net profit, gross profit,
operating profit, economic profit, profit margins or other corporate profit measures); (iv) earnings (EBIT, EBITDA, earnings per share,
or other corporate earnings measures); (v) net income (before or after taxes, operating income or other income measures); (vi) cash (cash
flow, cash generation or other cash measures); (vii) share price or performance; (viii) total shareholder return (share price appreciation
plus reinvested dividends divided by beginning share price); (ix) economic value added; (x) return measures (including, but not limited
to, return on assets, capital, equity, investments or sales, and cash flow return on assets, capital, equity, or sales); (xi) market share;
(xii) improvements in capital structure; (xiii) expenses (expense management, expense ratio, expense efficiency ratios or other expense
measures); (xiv) business expansion or consolidation (acquisitions and divestitures); (xv) internal rate of return or increase in net
present value; (xvi) working capital targets relating to inventory and/or accounts receivable; (xvii) inventory management; (xviii) service
or product delivery or quality; (xix) employee retention; (xx) safety standards; (xxi) productivity measures; (xxii) cost reduction measures;
and/or (xxiii) strategic plan development and implementation.

 

(c) At
the discretion of the Committee, the settlement of Performance Share Units or Performance Shares may be in cash, Shares of equivalent
value, or in some combination thereof, as set forth in the Award Agreement.

 

    -16-

     

    

 

(d) If
a Grantee is promoted, demoted or transferred to a different business unit of the Company during a Performance Period, then, to the extent
the Committee determines that the Award, the performance goals, or the Performance Period are no longer appropriate, the Committee may
adjust, change, eliminate or cancel the Award, the performance goals, or the applicable Performance Period, as it deems appropriate in
order to make them appropriate and comparable to the initial Award, the performance goals, or the Performance Period.

 

(e) At
the discretion of the Committee, a Grantee may be entitled to receive any dividends or Dividend Equivalents declared with respect to Shares
issuable in connection with vested Performance Shares which have been earned, but not yet issued to the Grantee.

 

Article 10.

Deferred Shares and Restricted Share Units

 

10.1 Grant of Deferred
Shares and Restricted Share Units. Subject to and consistent with the provisions of the Plan, the Committee, at any time and from
time to time, may grant Deferred Shares and/or Restricted Share Units to any Eligible Person, in such amount and upon such terms as the
Committee shall determine.

 

10.2 Vesting and Delivery.

 

(a) Deferred
Shares. Delivery of Shares subject to a Deferred Shares grant will occur upon expiration of the deferral period or upon the occurrence
of one or more of the distribution events described in Section 409A(a)(2) of the Code as specified by the Committee in the Grantee’s
Award Agreement for the Award of Deferred Shares. An Award of Deferred Shares may be subject to such substantial risk of forfeiture conditions
as the Committee may impose, which conditions may lapse at such times or upon the achievement of such objectives as the Committee shall
determine at the time of grant or thereafter. Unless otherwise determined by the Committee, to the extent that the Grantee has a Termination
of Affiliation while the Deferred Shares remains subject to a substantial risk of forfeiture, such Deferred Shares shall be forfeited,
unless the Committee determines that such substantial risk of forfeiture shall lapse in the event of the Grantee’s Termination of
Affiliation due to death, Disability, or involuntary termination by the Company or a Subsidiary without “cause.”

 

(b) Restricted
Share Units. Delivery of Shares subject to a grant of Restricted Share Units will occur upon the expiration of the period during which
the Restricted Share Units are subject to a substantial risk of forfeiture. Unless otherwise determined by the Committee, to the extent
that the Grantee has a Termination of Affiliation while the Restricted Share Units remains subject to a substantial risk of forfeiture,
such Restricted Share Units shall be forfeited, unless the Committee determines that such substantial risk of forfeiture shall lapse in
the event of the Grantee’s Termination of Affiliation due to death, Disability, or involuntary termination by the Company or a Subsidiary
without “cause.”

 

10.3 Voting and Dividend
Equivalent Rights Attributable to Deferred Shares and Restricted Share Units. A Grantee awarded Deferred Shares or Restricted Share
Units will have no voting rights with respect to such Deferred Shares or Restricted Share Units prior to the delivery of Shares in settlement
of such Deferred Shares and/or Restricted Share Units. Unless otherwise determined by the Committee, a Grantee will have the rights to
receive Dividend Equivalents in respect of Deferred Shares and/or Restricted Share Units, which Dividend Equivalents shall be deemed
reinvested in additional Shares of Deferred Shares or Restricted Share Units, as applicable, which shall remain subject to the same forfeiture
conditions applicable to the Deferred Shares or Restricted Share Units to which such Dividend Equivalents relate.

 

    -17-

     

    

 

Article 11.

Dividend Equivalents

 

The Committee is authorized
to grant Awards of Dividend Equivalents alone or in conjunction with other Awards. The Committee may provide that Dividend Equivalents
shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Shares or additional Awards or otherwise
reinvested subject to distribution at the same time and subject to the same conditions as the Award to which it relates; provided, however,
that any Dividend Equivalents granted in conjunction with any Award that is subject to forfeiture conditions shall remain subject to the
same forfeiture conditions applicable to the Award to which such Dividend Equivalents relate and any payments in respect of any Dividend
Equivalents granted in conjunction with any Options or SARs may not be conditioned, directly or indirectly, on the Grantee’s exercise
of the Options or SARs or paid at the same time that the Options or SARs are exercised.

 

Article 12.

Bonus Shares

 

Subject to the terms of the
Plan, the Committee may grant Bonus Shares to any Eligible Person, in such amount and upon such terms and at any time and from time to
time as shall be determined by the Committee.

 

Article 13.

Other Share-Based Awards

 

The Committee is authorized,
subject to limitations under Applicable Law, to grant such other Awards that are denominated or payable in, valued in whole or in part
by reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the purposes of the Plan,
including Shares awarded which are not subject to any restrictions or conditions, convertible or exchangeable debt securities or other
rights convertible or exchangeable into Shares, and Awards valued by reference to the value of securities of or the performance of specified
Subsidiaries. Subject to and consistent with the provisions of the Plan, the Committee shall determine the terms and conditions of such
Awards. Except as provided by the Committee, Shares issued pursuant to a purchase right granted under this Article 13 shall be purchased
for such consideration, paid for by such methods and in such forms, including cash, Shares, outstanding Awards or other property, as the
Committee shall determine.

 

Article 14.

Non-Employee Director Awards

 

Subject to the terms of the
Plan, the Board may grant Awards to any Non-Employee Director, in such amount and upon such terms and at any time and from time to time
as shall be determined by the full Board in its sole discretion. Except as otherwise provided in Section 5.6(b), a Non-Employee Director
may not be granted Awards with respect to Shares that have a Fair Market Value (determined as of the date of grant) in excess of US$500,000
in a single calendar year.

 

    -18-

     

    

 

Article 15.

Amendment, Modification, and Termination

 

15.1 Amendment, Modification,
and Termination. Subject to Section 15.2, the Board may, at any time and from time to time, alter, amend, suspend, discontinue or
terminate the Plan in whole or in part without the approval of the Company’s shareholders, except that (a) any amendment or alteration
shall be subject to the approval of the Company’s shareholders if such shareholder approval is required by any federal or state
law or regulation or the rules of any stock exchange or automated quotation system on which the Shares may then be listed or quoted,
and (b) the Board may otherwise, in its discretion, determine to submit other such amendments or alterations to shareholders for approval.

 

15.2 Awards Previously
Granted. Except as otherwise specifically permitted in the Plan or an Award Agreement, no termination, amendment, or modification
of the Plan shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the
Grantee of such Award.

 

Article 16.

Compliance with Code Section 409A

 

The Plan and all Awards granted
hereunder are intended to comply with, or otherwise be exempt from, the requirements of Section 409A of the Code. The Plan and all
Awards granted under this Plan shall be administered, interpreted, and construed in a manner consistent with Section 409A of the
Code to the extent necessary to avoid the imposition of additional taxes under Section 409A(a)(1)(B) of the Code. To the extent that
the Committee determines that any Award is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate
the terms and conditions required by Section 409A of the Code. To the extent applicable, the Plan and Award Agreements shall be interpreted
in accordance with Section 409A of the Code and U.S. Department of Treasury regulations and other interpretive guidance issued thereunder.
Notwithstanding any provision of the Plan or any Award Agreement to the contrary, if the Committee determines that any Award may be subject
to Section 409A of the Code, the Committee may adopt such amendments to the Plan and each applicable Award Agreement as the Committee
determines necessary or appropriate to (a) exempt the Award from Section 409A of the Code, or (b) comply with the requirements of Section
409A of the Code and related U.S. Department of Treasury guidance.

 

Article 17.

Withholding

 

17.1 Required Withholding.

 

(a) The
Committee in its sole discretion may provide that when taxes under any Applicable Law are to be withheld in connection with the exercise
of an Option or SAR, or upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, or upon payment of any other
benefit or right under this Plan (the date on which such exercise occurs or such restrictions lapse or such payment of any other benefit
or right occurs hereinafter referred to as the “Tax Date”), the Grantee may elect to make payment for the withholding of taxes
under Applicable Law, including without limitation United States federal, state and local taxes, including Social Security and Medicare
(“FICA”) taxes, by one or a combination of the following methods:

 

(i) payment
of an amount in cash equal to the amount to be withheld (including cash obtained through the sale of the Shares acquired on exercise of
an Option or SAR, upon the lapse of restrictions on Restricted Shares, or upon the transfer of Shares, through a broker-dealer to whom
the Grantee has submitted an irrevocable instructions to deliver promptly to the Company, the amount to be withheld);

 

(ii) delivering
part or all of the amount to be withheld in the form of Shares valued at its Fair Market Value on the Tax Date;

 

(iii) requesting
the Company to withhold from those Shares that would otherwise be received upon exercise of the Option or SAR, upon the lapse of restrictions
on Restricted Shares, or upon the transfer of Shares, a number of Shares having a Fair Market Value on the Tax Date equal to the amount
to be withheld; or

 

(iv) withholding
from any compensation otherwise due to the Grantee.

 

    -19-

     

    

 

The Committee shall
provide that the amount of tax withholding upon exercise of an Option or SARs, upon the lapse of restrictions on Restricted Shares, or
upon the transfer of Shares, to be satisfied by withholding Shares upon exercise of such Option or SAR, upon the lapse of restrictions
on Restricted Shares, or upon the transfer of Shares, pursuant to clause (iii) above shall not exceed the maximum amount of taxes, including
FICA taxes, required to be withheld under federal, state and local law. An election by Grantee under this subsection is irrevocable. Any
fractional share amount and any additional withholding not paid by the withholding or surrender of Shares must be paid in cash. If no
timely election is made, the Grantee must deliver cash to satisfy all tax withholding requirements.

 

(b) Any
Grantee who makes a Disqualifying Disposition (as defined in Section 6.4(f)) or an election under Section 83(b) of the Code shall remit
to the Company an amount sufficient to satisfy all resulting tax withholding requirements in the same manner as set forth in subsection
(a).

 

17.2 Notification under
Code Section 83(b). If the Grantee, in connection with the exercise of any Option, or the grant of Restricted Shares, makes the election
permitted under Section 83(b) of the Code to include in such Grantee’s gross income in the year of transfer the amounts specified
in Section 83(b) of the Code, then such Grantee shall notify the Company of such election within 10 days of filing the notice of the
election with the Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under
Section 83(b) of the Code. The Committee may, in connection with the grant of an Award or at any time thereafter, prohibit a Grantee
from making the election described above.

 

Article 18.

Additional Provisions

 

18.1 Successors. Subject to Section 4.2(b),
all obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company,
whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise of all or
substantially all of the business and/or assets of the Company.

 

18.2 Severability. If any part of the Plan
is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any
other part of the Plan. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible, be construed in a
manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful
and valid.

 

18.3 Requirements of Law. The granting
of Awards and the delivery of Shares under the Plan shall be subject to all Applicable Law, rules, and regulations, and to such approvals
by any governmental agencies or national securities exchanges as may be required. Notwithstanding any provision of the Plan or any Award,
Grantees shall not be entitled to exercise, or receive benefits under, any Award, and the Company (and any Subsidiary) shall not be obligated
to deliver any Shares or deliver benefits to a Grantee, if such exercise or delivery would constitute a violation by the Grantee or the
Company of any Applicable Law or regulation.

 

    -20-

     

    

 

18.4 Securities Law Compliance.

 

(a) If
the Committee deems it necessary to comply with any applicable securities law, or the requirements of any stock exchange upon which Shares
may be listed, the Committee may impose any restriction on Awards or Shares acquired pursuant to Awards under the Plan as it may deem
advisable. In addition, if requested by the Company and any underwriter engaged by the Company, Shares acquired pursuant to Awards may
not be sold or otherwise transferred or disposed of for such period following the effective date of any registration statement of the
Company filed under the Securities Act as the Company or such underwriter shall specify reasonably and in good faith, not to exceed 180
days in the case of the Company’s initial public offering or 90 days in the case of any other public offering. All certificates
(if any) for Shares issued under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders
and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the SEC, any stock exchange
upon which Shares are then listed, any applicable securities law, and the Committee may cause a legend or legends to be put on any such
certificates (if any) to make appropriate reference to such restrictions. If so requested by the Company, the Grantee shall make a written
representation to the Company that he or she will not sell or offer to sell any Shares unless a registration statement shall be in effect
with respect to such Shares under the Securities Act of 1933, as amended, and any applicable state securities law or unless he or she
shall have furnished to the Company, in form and substance satisfactory to the Company, that such registration is not required.

 

(b) If
the Committee determines that the exercise or non-forfeitability of, or delivery of benefits pursuant to, any Award would violate any
applicable provision of securities laws or the listing requirements of any national securities exchange or national market system on which
are listed any of the Company’s equity securities, then the Committee may postpone any such exercise, non-forfeitability or delivery,
as applicable, but the Company shall use all reasonable efforts to cause such exercise, non-forfeitability or delivery to comply with
all such provisions at the earliest practicable date.

 

18.5 Forfeiture Events.
Notwithstanding any provisions herein to the contrary, the Committee shall have the authority to provide in any Award Agreement that
a Grantee’s (including his or her estate’s, beneficiary’s or transferee’s) rights (including the right to exercise
any Option or SAR), payments and benefits with respect to any Award shall be subject to reduction, cancellation, forfeiture or recoupment
(to the extent permitted by Applicable Law) in the event of the Participant’s termination for Cause; serious misconduct; violation
of the Company’s or a Subsidiary’s policies; breach of fiduciary duty; unauthorized disclosure of any trade secret or confidential
information of the Company or a Subsidiary; breach of applicable non-competition, non-solicitation, confidentiality or other restrictive
covenants; or other conduct or activity that is in competition with the business of the Company or a Subsidiary, or otherwise detrimental
to the business, reputation or interests of the Company and/or a Subsidiary; or upon the occurrence of certain events specified in the
applicable Award Agreement (in any such case, whether or not the Grantee is then an Employee or Non-Employee Director). The determination
of whether a Grantee's conduct, activities or circumstances are described in the immediately preceding sentence shall be made by the
Committee in its discretion, and pending any such determination, the Committee shall have the authority to suspend the exercise, payment,
delivery or settlement of all or any portion of such Grantee’s outstanding Awards pending any investigation of the matter.

 

18.6 No Rights as a Shareholder.
No Grantee shall have any rights as a shareholder of the Company with respect to the Shares (other than Restricted Shares) which may
be deliverable upon exercise or payment of such Award until such Shares have been delivered to him or her. Restricted Shares, whether
held by a Grantee or in escrow by the Company, shall confer on the Grantee all rights of a shareholder of the Company, except as otherwise
provided in the Plan or Award Agreement. At the time of a grant of Restricted Shares, the Committee may require the payment of cash dividends
thereon to be deferred and, if the Committee so determines, reinvested in additional Restricted Shares. Share dividends and deferred
cash dividends issued with respect to Restricted Shares shall be subject to the same restrictions and other terms as apply to the Restricted
Shares with respect to which such dividends are issued. The Committee may in its discretion provide for payment of interest on deferred
cash dividends.

 

    -21-

     

    

 

18.7 Nature of Payments.
Unless otherwise specified in the Award Agreement, Awards shall be special incentive payments to the Grantee and shall not be taken into
account in computing the amount of salary or compensation of the Grantee for purposes of determining any pension, retirement, death or
other benefit under (a) any pension, retirement, profit sharing, bonus, insurance or other employee benefit plan of the Company or any
Subsidiary, except as such plan shall otherwise expressly provide, or (b) any agreement between (i) the Company or any Subsidiary and
(ii) the Grantee, except as such agreement shall otherwise expressly provide.

 

18.8 Non-Exclusivity of
Plan. Neither the adoption of the Plan by the Board nor its submission to the shareholders of the Company for approval shall be construed
as creating any limitations on the power of the Board to adopt such other compensatory arrangements for employees or Non-Employee Directors
as it may deem desirable.

 

18.9 Governing Law.
The Plan is governed by and construed in accordance with, the laws of the Cayman Islands. The courts of the Cayman Islands and the courts
of appeal from them shall have non-exclusive jurisdiction to determine any disputes which may arise out of or in connection with this
Plan, accordingly, any legal action or proceedings arising out of or in connection with this Plan may be brought in those courts, but
without prejudice to the right of the Company or any Grantee to bring proceedings in any other appropriate jurisdiction.

 

18.10 Unfunded Status
of Awards; Creation of Trusts. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation.
With respect to any payments not yet made to a Grantee pursuant to an Award, nothing contained in the Plan or any Award Agreement shall
give any such Grantee any rights that are greater than those of a general creditor of the Company; provided, however, that the Committee
may authorize the creation of trusts or make other arrangements to meet the Company’s obligations under the Plan to deliver cash,
Shares or other property pursuant to any Award which trusts or other arrangements shall be consistent with the “unfunded”
status of the Plan unless the Committee otherwise determines.

 

18.11 Affiliation.
Nothing in the Plan or an Award Agreement shall interfere with or limit in any way the right of the Company or any Subsidiary to terminate
any Grantee’s employment or consulting contract at any time, nor confer upon any Grantee the right to continue in the employ of
or as an officer of or as a consultant to or Non-Employee Director of the Company or any Subsidiary.

 

18.12 Participation.
No employee or officer shall have the right to be selected to receive an Award under this Plan or, having been so selected, to be selected
to receive a future Award.

 

18.13 Construction.
The following rules of construction will apply to the Plan: (a) the word “or” is disjunctive but not necessarily exclusive,
(b) “including” (and with correlative meaning “include”) means including without limiting the generality of any
description preceding or succeeding such term and shall be deemed in each case to be followed by the words “without limitation”,
and (c) words in the singular include the plural, words in the plural include the singular, and words in the neuter gender include the
masculine and feminine genders and words in the masculine or feminine gender include the other neuter genders.

 

    -22-

     

    

 

18.14 Headings. The headings of articles
and sections are included solely for convenience of reference, and if there is any conflict between such headings and the text of this
Plan, the text shall control.

 

18.15 Obligations.
Unless otherwise specified in the Award Agreement, the obligation to deliver, pay or transfer any amount of money or other property pursuant
to Awards under this Plan shall be the sole obligation of a Grantee’s employer; provided that the obligation to deliver or transfer
any Shares pursuant to Awards under this Plan shall be the sole obligation of the Company.

 

18.16 No Right to Continue
as Director. Nothing in the Plan or any Award Agreement shall confer upon any Non-Employee Director the right to continue to serve
as a director of the Company.

 

18.17 Shareholder Approval.
All Incentive Share Options granted on or after the Effective Date and prior to the date the Company’s shareholders approve the
Plan are expressly conditioned upon and subject to approval of the Plan by the Company’s shareholders.

 

18.18 Forfeiture of Shares.
Any forfeiture of Shares described in this Plan will take effect as a surrender for no consideration of such Shares as a matter of Cayman
Islands law.

 

18.19 Share Issuances.
The allotment and issuance of Shares pursuant to the terms of this Plan following the exercise of an Option shall be subject to the Amended
and Restated Memorandum and Articles of Association of the Company. Shares shall not in fact be allotted and issued (or repurchased or
forfeited) until the time at which the Grantee's name (and number of Shares to be allotted and issued) is entered on the Company's Register
of Members (or the existing entry is updated to reflect the repurchase or forfeiture) (the register being prima facie evidence of legal
title to Shares).

 

18.20 No Dividends on
Unvested Awards. Notwithstanding anything in this Plan to the contrary, in no event shall the Board or the Committee approve the
payment of any dividend by the Company on unvested Awards.

 

# # #

 

 

-23-ex_274533.htm

Exhibit 10.1

 

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT, effective as of June 1, 2021 (the “Effective Date”), is hereby entered into by and between CVD Equipment Corporation, a corporation organized and existing under the laws of the State of New York (the “Company”) and Emmanuel Lakios (“Executive”).

 

WITNESSETH:

 

WHEREAS, Executive is currently employed by the Company as President and Chief Executive Officer; and

 

WHEREAS, the Company agrees to continue to employ Executive and Executive agrees to continue to be employed by the Company on the terms and conditions set forth herein.

 

NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, the parties hereto agree as follows:

 

1)    EMPLOYMENT OF EXECUTIVE: The Company hereby employs Executive and Executive hereby accepts employment with the Company, in each case pursuant to the terms and conditions of this Agreement.

 

2)    DUTIES: Executive shall be President and Chief Executive Officer of the Company and shall have the authority, functions, duties, powers and responsibilities normally associated with such positions, and such other title, authority, functions, duties, powers and responsibilities as may be assigned to Executive from time to time by the Board of Directors of the Company (the “Board”) consistent with Executive’s positions with the Company. Executive agrees to devote substantially all of his business time and efforts to the performance of his duties, except for customary vacations and reasonable absences due to illness or other incapacity as set forth herein, and to perform all of his duties to the best of his professional ability and comply with such reasonable policies, standards, and regulations of the Company as are from time to time established by the Board. Executive shall have no outside business activities that are competitive with or present a conflict of interest with the Company, or that would conflict or interfere with the performance of his duties hereunder. Notwithstanding the foregoing, nothing contained herein shall be construed so as to prohibit or prevent Executive from engaging in charitable causes, sitting on the boards of directors of not-for-profit entities, or managing his and his family’s personal finances, so long as such activities do not conflict or interfere with the performance of his duties hereunder. By entering into this Agreement, Executive represents that he is not a party to any restrictive covenants, or other agreement or understanding that would conflict or interfere with the performance of any of his duties hereunder.

 

3)    TERM: The term of employment under this Agreement shall commence on the Effective Date and shall continue until terminated in accordance with Section 11 hereof (the “Term”).

 

 

 

 

 

4)    PLACE OF EMPLOYMENT: Executive’s principal work location shall be at the Company’s office located in Central Islip, New York. Executive shall travel to such other locations as reasonably necessary in the discretion of the Company to carry out his duties hereunder on an as-needed basis.

 

5)    COMPENSATION: For all services rendered to the Company, Executive agrees to accept as total compensation a sum computed as set forth in this Section 5. All payments of compensation (whether under this Section 5 or under any other section of this Agreement) shall be subject to all applicable withholdings, deductions and other authorized deductions in accordance with applicable law and Company policies and procedures.

 

(a)    Base Salary. The Company shall pay Executive an annual base salary at the rate of Two Hundred Eighty Eight Thousand Dollars ($288,000.00) per year (“Base Salary”) during the Term, in accordance with the customary payroll practices of the Company applicable to senior executives. During the Term, the Company’s Compensation Committee of the Board shall review the Base Salary and may provide for such increases (but not decreases) in Base Salary as it may, in its sole and exclusive discretion, deem appropriate.

 

(b)    Annual Incentive Plan. Executive shall be entitled to participate in any bonus or incentive plan available to the Company’s senior executives (the “Bonus Plan”) generally, on such terms as the Compensation Committee of the Board may determine in its discretion.

 

6)    VACATION/SICK TIME: Executive shall be entitled to five (5) weeks of paid vacation during each year of Executive's employment. The scheduling of any vacation shall be coordinated with the Company so that the staffing needs of the Company are met to the extent reasonably possible. Executive shall be granted sick time in accordance with the policy outlined in the Company's policy manual then in effect from time to time.

 

7)    REIMBURSEMENT OF BUSINESS EXPENSES: The Company agrees to pay, either directly or indirectly by payment to Executive, for all of Executive's reasonable entertainment, travel and other miscellaneous business expenses incurred by him in the performance of his services under this Agreement, in accordance with the Company’s policies regarding such reimbursements. As a prerequisite to any payment or reimbursement by the Company for business expenses, Executive shall submit receipts of all such expenses to the Company; and the Company's obligation to effect payment or reimbursement of such expenses shall be only to the extent of such receipts.

 

8)    ADDITIONAL BENEFITS: Executive and his dependents shall be eligible to participate in the Company’s medical and dental insurance plans applicable to senior executives at the Company in accordance with the terms and conditions of such plans.

 

9)    COMPANY PROPERTY: Executive understands and agrees that Company files, customer files, legal files, legal research files, form files, forms, examples, samples, and all briefs and memoranda, intellectual property and other work product or property, and all copies thereof (collectively, “Company Property”) are the sole and exclusive property of the Company; and the same shall remain in the possession of the Company and shall constitute the property of the Company irrespective of who prepared the same. Executive shall not remove, photocopy, photograph, or in any other manner duplicate or otherwise remove or use any Company Property other than in the performance of his duties hereunder.

 

2

 

 

10)    DISPOSITION OF PROPERTY UPON TERMINATION OF EMPLOYMENT: In the event that Executive’s employment with the Company is terminated for any reason, Executive agrees and understands that all Company Property in his possession or control shall be, at the Company’s option, promptly destroyed or returned to the Company, and Executive shall have no right, title or interest in the same.

 

11)    TERMINATION OF EMPLOYMENT: Upon Executive’s termination of employment for any reason, he shall automatically be deemed to have stepped down from all positions and offices held with the Company. The employment of Executive may be terminated as follows:

 

(a)    Termination upon Death or Disability. This Agreement and Executive’s employment hereunder shall automatically terminate on the date on which Executive dies or becomes permanently incapacitated. Executive shall be deemed to have become “permanently incapacitated” on the date that is thirty (30) days after the Company has determined that Executive has suffered a Permanent Incapacity (as defined below) and so notifies Executive. For purposes of this section, “Permanently Incapacitated” shall mean (i) Executive’s actual or anticipated inability, due to physical or mental incapacity, to substantially perform his duties and responsibilities under this Agreement with or without reasonable accommodation for four (4) months out of any twelve (12) month period; or (ii) Executive is receiving income benefits for a period of ninety (90) days under any long-term disability plan by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of four (4) months or more.

 

(b)    Termination by the Company for Cause. The Company may terminate this Agreement and Executive’s employment hereunder for Cause (as defined below), effective immediately upon delivery of written notice (the “Termination Notice”) to Executive given at any time during the Term (without any necessity for prior notice). For purposes of this Agreement, “Cause” shall mean Executive’s: (1) conviction of any felony or any other crime involving dishonesty or moral turpitude, (2) commission of any act of fraud or dishonesty by Executive, or theft of or intentional damage to the property of the Company or any of its subsidiaries or affiliates, (3) engaging in any act that has had, or can reasonably be expected to have, a significant adverse financial effect on the Company or a significant adverse effect on the Company’s reputation, (4) willful or intentional breach of Executive’s fiduciary duties to the Company, (5) breach by Executive of any material provision of this Agreement, or (6) violation of a material policy of the Company as in effect from time-to-time. Prior to a termination by the Company of Executive's employment for Cause under subsections (5) or (6) of this Section 11(b), in the event that the Company deems the breach curable in its sole reasonable discretion, Executive shall first have an opportunity to cure or remedy such breach within fifteen (15) days following the Termination Notice, or such longer period as is reasonable under the circumstances, and provided that Executive diligently pursues such cure within such fifteen (15) day period, and if the same is cured or remedied within such period, such notice shall become null and void.

 

3

 

 

(c)    Termination by the Company without Cause. The Company may terminate this Agreement and Executive’s employment hereunder without Cause, upon at least thirty (30) days prior written notice to Executive.

 

(d)    Termination by Executive for Good Reason. Executive may terminate this Agreement and Executive’s employment hereunder with Good Reason (as defined below). For purposes of this Agreement, “Good Reason” shall mean (i) the material reduction of Executive’s title, authority, duties and responsibilities or the assignment to Executive of duties materially inconsistent with Executive’s position or positions with the Company; (ii) a change in Executive’s principal work location without Executive’s consent to a location that is more than 35 miles from Executive’s principal work location first established under Section 4 of this Agreement, or (iii) the Company’s material breach of this Agreement. Notwithstanding the foregoing, (x) Good Reason shall not be deemed to exist unless notice of termination on account thereof (specifying a termination date thirty (30) days from the date of such notice) is given no later than 60 days after the time at which the event or condition purportedly giving rise to Good Reason first occurs or arises, and (y) if there exists an event or condition that constitutes Good Reason, the Company shall have fifteen (15) days from the date notice of such a termination is given to cure such event or condition and, if the Company does so, such event or condition shall not constitute Good Reason hereunder.

 

(e)    Termination by Executive other than for Good Reason. Executive may terminate this Agreement and Executive’s employment hereunder other than for Good Reason, provided that Executive gives the Company no less than thirty (30) days prior written notice of such termination. The Company reserves the right to accelerate such termination date in its discretion without affecting the basis for Executive’s voluntary termination under this section.

 

12)    PAYMENTS UPON TERMINATION. In the event of the termination of this Agreement and Executive’s employment hereunder, Executive (or Executive’s estate or beneficiaries in the case of the death of Executive) shall be entitled to: (A) receive any unpaid Base Salary and benefits earned and accrued under this Agreement prior to the date of termination (and reimbursement under this Agreement for expenses incurred prior to the date of termination) in accordance with any applicable Company plan or policy; (B) indemnification in accordance with any applicable indemnification plan, program, corporate governance document or other arrangement, and any vested rights pursuant to any insurance plan, benefit plan or retirement plan; and, except for termination of Executive by the Company for Cause pursuant to Section 11(b) hereof, (C) treatment of Executive’s stock option grants in accordance with the terms of the applicable plan and award agreement. Additionally, Executive will receive the amounts and benefits set forth below, so long as Executive (or Executive’s estate or beneficiaries in the case of the death of Executive) (x) executes a separation agreement and general release and waiver of all claims in a form and substance reasonably satisfactory to the Company (the “Release”) within thirty (30) days following the date of termination and the applicable revocation period with respect to such Release expires without Executive having revoked any portion of the Release, and (y) does not breach any of the terms of Section 13 hereof (Restrictive Covenants) of this Agreement. Subject to the foregoing, any payments to be made in accordance with this Section 12 will commence no later than thirty (30) days following the Company’s receipt of the executed Release from Executive.

 

4

 

 

(a)    Upon termination of this Agreement and Executive’s employment hereunder pursuant to Section 11(a) hereof, Executive (or Executive’s estate or beneficiaries in the case of the death of Executive) (i) shall be entitled to a pro rata bonus payment under the Bonus Plan for the year of termination, if applicable, determined by multiplying (I) the bonus payment that Executive would have received under the Bonus Plan for such year had his employment continued by (II) a fraction, the numerator of which is the number of days employed during such year and the denominator of which is 365, and (ii) shall have no further rights to any other compensation or benefits hereunder, or any other rights hereunder.

 

(b)    Upon termination of this Agreement and Executive’s employment hereunder by the Company for Cause pursuant to Section 11(b) hereof or by Executive other than for Good Reason pursuant to Section 11(e) hereof, Executive shall have no further rights to any other compensation or benefits hereunder, or any other rights hereunder. In the event that Executive is terminated for Cause pursuant to Section 11(b) hereof, then notwithstanding anything to the contrary contained in the applicable plan and award agreements, Executive’s stock option grants, whether vested or unvested, shall immediately terminate and be null and void.

 

(c)    Upon termination of this Agreement and Executive’s employment hereunder (x) by the Company without Cause pursuant to Section 11(c) hereof, or (y) by Executive for Good Reason pursuant to Section 11(d) hereof, Executive (or Executive’s estate or beneficiaries in the case of the death of Executive following the termination of Executive’s employment) (i) shall be entitled to (A) a pro rata bonus for the year of termination, determined by multiplying (I) the bonus that Executive would have received under the Bonus Plan for such year had his employment continued by (II) a fraction, the numerator of which is the number of days employment during such year and the denominator of which is 365; and (B) continued payment of his Base Salary and the employer’s portion of Executive’s then existing medical benefits for the nine (9) month period following the date of termination, and (ii) shall have no further rights to any other compensation or benefits hereunder, or any other rights hereunder.

 

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13)    RESTRICTIVE COVENANTS.

 

(a)     Noncompetition. Executive acknowledges and agrees that during the period of his employment with the Company and for the 12-month period following the termination of such employment, regardless of the reason for such termination (the “Restricted Period”), he shall not, directly or indirectly: (i) engage in, manage, operate, control, supervise, or participate in the management, operation, control or supervision of any business, entity or division that competes with any businesses of the Company or any of its subsidiaries (a “Competitor”) or serve as an employee, consultant or in any other capacity for a Competitor; (ii) have any ownership or financial interest, directly, or indirectly, in any Competitor including, without limitation, as an individual, partner, shareholder (other than as a shareholder of a publicly-owned corporation in which Executive owns less than five percent (5%) of the outstanding shares of such corporation), officer, director, employee, principal, agent or consultant; or (iii) serve as a representative of any Competitor.

 

(b)     Non-Solicitation; No-Hire. Executive acknowledges and agrees that during the Restricted Period he shall not, directly or indirectly, other than in connection with carrying out his duties hereunder, (i) solicit or induce any employee or consultant of the Company (or any individual who was an employee or consultant of the Company at any time during the 12-month period preceding any such solicitation or inducement) to (A) terminate his or his employment or relationship with the Company, and/or (B) work for Executive or any Competitor, or (ii) hire, engage or be involved in the process of any business, entity or division in hiring or engaging, any employee or consultant of the Company (or any individual who was an employee or consultant of the Company at any time during the 12-month period preceding any such hiring).

 

(c)    Non-Solicitation of Clients. Executive acknowledges and agrees that during the Restricted Period he shall not, directly or indirectly, solicit, take away or divert, or attempt to solicit, take away or divert, the business or patronage of any client or customer of the Company with the intention or for the purpose of providing services that compete with the services provided by the Company at the time of Executive’s termination.

 

(d)    Non-Disruption. Executive agrees that during the Restricted Period Executive will not, directly or through others, encourage or assist any person to take any action to solicit, induce, or influence any third party, including any customer, provider of goods or services to the Company, to terminate, divert, interfere with, or diminish in any manner whatsoever his, her, or its business relationship with the Company, even if Executive is not the one to initiate contact with the aforementioned.

 

(e)     Disparaging Comments. Executive agrees not to make critical, negative or disparaging remarks at any time during the Term or thereafter regarding the Company or its management, employees, investors, businesses, agents, or employment practices; provided that nothing in this Section 13(e) shall be deemed to prevent Executive from responding fully and accurately to any question, inquiry or request for information when required by applicable law or legal process, or to enforce this Agreement. The Company and its officers and directors shall not make critical, negative or disparaging remarks about Executive; provided that nothing in this Section 13(e) shall be deemed to prevent the Company or its officers or directors from responding fully and accurately to any question, inquiry or request for information when required by applicable law or legal process, or to enforce this Agreement.

 

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(f)         Confidentiality. Executive acknowledges and agrees that the Company’s business is highly competitive and that Executive has been and will continue to be involved in and become aware of the Company’s trade secrets, materials, know-how (whether or not in writing), technology, product information and intellectual property belonging to the Company (“Trade Secrets”) and all confidential matters (whether available in written, electronic form or orally) relating to the Company and its business (including without limitation its strategies, models, business and marketing plans, pricing, sales and revenue information, financial performance, etc.), and personal and other confidential information relating to its owners, managers, investors, members, shareholders, executives, and employees (the “Confidential Information”), all of which has been developed at great investment of time and resources by the Company so as to engender substantial good will, and all of which are and will remain the exclusive property of the Company. Therefore, Executive agrees that during the period of his employment with the Company and at all times thereafter, Executive shall not disclose, shall keep secret, shall retain in strictest confidence and shall not use for his benefit or the benefit of others, except in connection with the business and affairs of the Company, any Trade Secret or Confidential Information. The foregoing will not prohibit disclosure of Confidential Information as required by law or regulation, including, but not limited to, those of the U.S. Securities And Exchange Commission and the rules of any exchange, quotation system and/or self-regulatory organization on which or with which the Company’s securities are quoted, listed and/or traded, as the case may be; provided that if Executive is required to make a disclosure pursuant to the foregoing, he agrees to give the Company prompt written notice thereof and cooperate with the Company’s efforts to seek a protective order.  Neither the foregoing nor anything else herein shall prohibit Executive from reporting possible violation of federal or state law or regulations to any governmental agency of self-regulatory organization, or making other disclosures that are protected under whistleblower or other provisions of applicable federal or state law or regulations.  Notwithstanding any other provision of this Agreement: (a) Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that: (i) is made: (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding ; and (b) if Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the Company’s trade secrets to Executive’s attorney and use the trade secret information in the court proceeding if te Executive: (i) files any document containing the trade secret under seal; and (ii) does not disclose the trade secret except pursuant to court order. Executive shall not need the prior authorization of the Company to make any such reports or disclosures and Executive is not required to notify the Company that he has made such reports or disclosures. 

 

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(g)     Inventions and Discoveries. Executive agrees to promptly disclose in writing to the Board all ideas, processes, methods, devices, business concepts, inventions, improvements, discoveries, know-how, and other creative achievements (hereinafter referred to collectively as “Discoveries”), whether or not the same or any part thereof is capable of being patented, trademarked, copyrighted, or otherwise protected, which Executive, while employed with the Company, as well as those communicated to Executive by other employees/consultants of the Company, conceives, makes, develops, acquires or reduces to practice, whether acting alone or with others and whether during or after usual working hours, and which are related in any way to the Company’s business or interests. Executive hereby transfers and assigns to the Company in perpetuity all right, title and interest in and to such Discoveries, including but not limited to, any and all domestic and foreign copyrights and patent and trademark rights therein and any renewals thereof, all of which are hereby deemed provided to the Company as a “Work for Hire” without claim by Executive. On request of the Company, Executive will, without any additional compensation, whether during the Term or afterwards, execute such further instruments (including, without limitation, applications for copyrights, letters patent, trademarks and assignments thereof in any and all countries) and do all such other acts and things as may be deemed necessary or desirable by the Company to protect and/or enforce its right in respect of such Discoveries. All expenses of filing or prosecuting any patent, trademark or copyright application shall be borne by the Company, but Executive shall cooperate in filing and/or prosecuting any such application. In the event the Company is unable, after reasonable effort, to obtain Executive’s signature on any such documents, Executive hereby irrevocably designates and appoints the Company as his agent and attorney-in-fact, to act for and on Executive’s behalf solely to execute and file any such application or other document and do all other lawfully permitted acts to further the prosecution and issuance of patents, copyrights, or other intellectual property protection related to the Discoveries with the same legal force and effect as if Executive had executed them. Executive agrees that this power of attorney is coupled with an interest.

 

(i)      For purposes of this Agreement, any Discovery shall be deemed to have been made during Executive’s employment with the Company if, during such period, the Discovery was conceived or first actually reduced to practice, and Executive agrees that any patent application filed by Executive within one (1) year after the end of the Term shall be presumed to relate to an invention made during Executive’s employment with the Company unless Executive can establish the contrary. Executive shall keep and maintain adequate and correct written records of all Discoveries made by Executive (solely or jointly with others) during Executive’s employment with the Company. The records will be available to and remain the property of the Company at all times.

 

(ii)         Any assignment of copyrights under this Agreement includes all rights of paternity, integrity, disclosure, and withdrawal and any other rights that may be known as "moral rights" (collectively, "Moral Rights"). Executive hereby irrevocably waives, to the extent permitted by applicable law, any and all claims Executive may now or hereafter have in any jurisdiction to any Moral Rights with respect to the Discoveries.

 

(h)    Acknowledgement. Executive agrees and acknowledges that each restrictive covenant in this Section 13 is reasonable as to duration, terms and geographical area and that the same is necessary to protect the legitimate business interests of the Company, imposes no undue hardship on Executive, and is not injurious to the public. Executive further acknowledges that the amount of his compensation reflects, in part, his obligations and the Company’s rights under this Agreement and that he will not be subject to undue hardship by reason of his full compliance with the terms and conditions hereof.

 

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14)    INJUNCTIVE RELIEF. Executive agrees that the precise value of the covenants in Section 13 are so difficult to evaluate that no accurate measure of liquidated damages could possibly be established and that, in the event of a breach or threatened breach of such provisions, the Company shall be entitled to temporary and permanent injunctive relief (without the position of a bond or other security) restraining Executive from such breach or threatened breach without the requirement of posting a bond or other security. In the event that any of the covenants made in Section 13 shall be more restrictive than permitted by applicable law, the parties agree that such covenant shall be interpreted to be as restrictive as otherwise allowed under applicable law. Additionally, all time periods described in Sections 13 shall be extended by a period during which Executive is in violation of any provision of this Agreement, and for any time during which there is pending in any court of competent jurisdiction any action (including any appeal from final judgment) brought by any person, whether or not a party to this Agreement, in which the Company seeks to enforce any covenant contained in this Agreement, or in which any person contests the validity or enforceability of any covenant contained in this Agreement, or seeks to avoid performance or enforcement of a covenant contained within this Agreement. In the event of an action to remedy a breach of any provision hereof or to enforce the terms of this Agreement, the Company shall be entitled to recover its costs and reasonable attorney’s fees, in addition to all other available remedies.

 

15)    INDEMNIFICATION: During and after the period of Executive’s employment by the Company, the Company shall indemnify Executive to the maximum extent permitted by any applicable agreement, arrangement or corporate governance document of the Company or, in the event no such agreement, arrangement or document exists, to the maximum extent permitted by applicable law, in either case against all liabilities, losses, damages and expenses actually and reasonably incurred by Executive in connection with any claim or proceeding arising out of, or relating to, his services for the Company, other than (i) any claim or proceeding by the Company against Executive and (ii) any claim or proceeding by Executive against the Company (“Losses”). The Company shall advance to Executive to the extent permitted by law all Losses incurred by him provided Executive undertakes to repay the amount of such advances if it shall ultimately be determined that he is not entitled to be indemnified against such Losses.

 

16)    NOTICES: Any notice required or permitted to be given pursuant to the provisions of this shall be sufficient if in writing, and if personally delivered to the party to be notified or if sent by regular mail and nationally recognized overnight delivery service to said party at the following addresses, or such other address as provided by the parties in writing:

 

	If to the Company:	
			CVD Equipment Corporation

			355 South Technology Drive

			Central Islip, New York 11722

			Attn: Chief Executive Officer

			
	 	 
	With a copy to: 	
			Ruskin Moscou Faltischek, P.C.

			1425 RXR Plaza

			East Tower, 15th Floor

			Uniondale, New York 11556

			Attn: Adam P. Silvers, Esq.

			

 

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	If to Executive:	
			Emmanuel Lakios

			201 Mountainridge Dr.

			Mount Sinai, NY 11766   

			

                        

17)    SEVERABILITY: In the event any portion of this Agreement is held to be invalid or unenforceable, the invalid or unenforceable portion or provision shall not affect any other provision hereof and this Agreement shall be construed and enforced as if the invalid provision had not been included.

 

18)    BINDING EFFECT: This Agreement shall inure to the benefit of and shall be binding upon the Company and upon any person, firm or corporation with which the Company may be merged or consolidated or which may acquire all or substantially all of the Company's assets through sale, lease, liquidation or otherwise. Except as otherwise specifically provided herein, the rights and benefits of Executive are personal to him and no such rights or benefits shall be subject to assignment or transfer by Executive.

 

19)    GOVERNING LAW: This Agreement shall be construed and interpreted in accordance with the laws of the State of New York, without regard to its conflict of laws provisions. Any legal proceeding arising out of or relating to this Agreement will be instituted in a state or federal court in Suffolk County, New York, and Executive and the Company hereby consent to the personal and exclusive jurisdiction of such court(s) and hereby waive any objection(s) that they may have to personal jurisdiction, the laying of venue of any such proceeding and any claim or defense of inconvenient forum.

 

20)    ENTIRE AGREEMENT: This Agreement constitutes the entire agreement between the parties and merges, integrates and supersedes any prior agreement in its entirety; and there are no other agreements between the parties with respect to the subject matter contained herein except as set forth herein.

 

21)    AMENDMENT AND MODIFICATION: All terms, conditions and provisions of this Agreement shall remain in full force and effect unless modified, changed, altered or amended, in writing, executed by both parties.

 

22)    NON-WAIVER. No waiver of any breach of any term or provision of this Agreement shall be construed to be, or shall be, a waiver of any other breach of this Agreement. No waiver shall be binding unless in writing and signed by the party waiving the breach.

 

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23)    SECTION 409A. This Agreement is intended to comply with or be exempt from Section 409A of the Code and will be interpreted, administered and operated in a manner consistent with that intent. Notwithstanding anything herein to the contrary, if at the time of Executive’s separation from service with the Company he is a “specified employee” as defined in Section 409A of the Code (and the regulations thereunder) and any payments or benefits otherwise payable hereunder as a result of such separation from service are subject to Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive) until the date that is six months following Executive’s separation from service with the Company (or the earliest date as is permitted under Section 409A of the Code), and the Company will pay any such delayed amounts in a lump sum at such time. If any other payments of money or other benefits due to Executive hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by the Company, that does not cause such an accelerated or additional tax. To the extent any reimbursements or in-kind benefits due to Executive under this Agreement constitute “deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to Executive in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). Each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A of the Code. References to “termination of employment” and similar terms used in this Agreement are intended to refer to “separation from service” within the meaning of Section 409A of the Code to the extent necessary to comply with Section 409A of the Code. Whenever a payment under this Agreement may be paid within a specified period, the actual date of payment within the specified period shall be within the sole discretion of the Company. In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement. Any provision in this Agreement providing for any right of offset or set-off by the Company shall not permit any offset or set-off against payments of “non-qualified deferred compensation” for purposes of Section 409A of the Code or other amounts or payments to the extent that such offset or set-off would result in any violation of Section 409A or adverse tax consequences to Executive under Section 409A.

 

24)    SURVIVAL. This Agreement will survive the cessation of Executive’s employment to the extent necessary to fulfill the purposes and intent of this Agreement.

 

25)    CAPTIONS. Captions of the sections or paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

26)    WAIVER OF JURY TRIAL. Executive hereby irrevocably agrees to waive his right to a jury trial of any claim or cause of action based upon or arising out of this Agreement or any dealings between the parties relating to this Agreement and the relationships thereby established. The scope of this waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this Agreement, including employment law claims, contract claims, tort claims, breach of duty claims, and all other statutory and common law claims. This waiver shall apply to any subsequent amendments, renewals, supplements or modifications of this Agreement.

 

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27)    COUNTERPARTS. This Agreement may be executed electronically, by email or facsimile, and in counterparts, and shall be fully binding and enforceable upon the parties when so executed.

 

 

CVD EQUIPMENT CORPORATION 

 

 

________________________________                  Date: June 1, 2021

By:     Thomas McNeill

Title:  Executive Vice President

and Chief Financial Officer

 

BY SIGNING IN THE SPACE PROVIDED, EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT AS OF THE DATE SET FORTH BELOW. 

 

 

_______________________________                  Date: June 1, 2021

EMMANUEL LAKIOS

 

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