Document:

Exhibit 10.5

 

FTAC
Hera Sponsor, LLC

2929
Arch Street, Suite 1703

Philadelphia, PA 19104

 

January
22, 2021

 

FTAC
Hera Acquisition Corp.

2929 Arch Street, Suite 1703

Philadelphia,
PA 19104

 

RE: Securities
Subscription Agreement

 

Ladies
and Gentlemen:

 

FTAC
Hera Acquisition Corp., a Cayman Islands exempted company (the “Company”), is pleased to accept the offer of
FTAC Hera Sponsor, LLC, a Delaware limited liability company (the “Subscriber” or “you”),
has made to subscribe for and purchase 22,012,500 Class B ordinary shares (the “Shares”), $0.0001 par value
per share (the “Ordinary Shares”), up to 2,812,500 of which are subject to complete or partial forfeiture by
you if the underwriters of the Company’s initial public offering (“IPO”) of units (“Units”)
do not fully exercise their over-allotment option (the “Over-allotment Option”).  The terms (this “Agreement”)
on which the Company is willing to sell the Shares to the Subscriber, and the Company and the Subscriber’s agreements regarding
such Shares, are as follows:

 

1.  Subscription
and Purchase of Shares. For the sum of $25,000 (the “Purchase Price”), which the Company acknowledges
as having previously been received by it, in cash, the Company hereby sells and issues the Shares to the Subscriber, and the Subscriber
hereby subscribes for and purchases the Shares from the Company, subject to forfeiture, on the terms and subject to the conditions
set forth in this Agreement.  All references in this Agreement to shares of the Company being forfeited shall take effect
as surrenders for no consideration of such shares as a matter of Cayman Islands law. On the issuance of the Shares, the Subscriber
hereby surrenders for no consideration the one Class B ordinary share, $0.0001 par value that the Subscriber holds in the Company.

 

2.  Representations,
Warranties and Agreements.

 

2.1  Subscriber’s
Representations, Warranties and Agreements.  To induce the Company to issue the Shares to the Subscriber, the Subscriber
hereby represents and warrants to the Company and agrees with the Company as follows:

 

2.1.1  No
Government Recommendation or Approval.  The Subscriber understands that no federal or state agency has passed upon or
made any recommendation or endorsement of the offering of the Shares.

 

2.1.2  No
Conflicts.  The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (i) the formation and governing documents
of the Subscriber, (ii) any agreement, indenture or instrument to which the Subscriber is a party or (iii) any law,
statute, rule or regulation to which the Subscriber is subject, or any agreement, order, judgment or decree to which the
Subscriber is subject.

 

2.1.3  Organization
and Authority.  The Subscriber is a Delaware limited liability company, validly existing and in good standing under the
laws of the State of Delaware and possesses all requisite power and authority necessary to carry out the transactions contemplated
by this Agreement.  Upon execution and delivery by you, this Agreement is a legal, valid and binding agreement of the Subscriber,
enforceable against the Subscriber in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally and subject to
general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

     

     

    

 

2.1.4  Experience,
Financial Capability and Suitability.  The Subscriber is:  (i) sophisticated in financial matters and is able
to evaluate the risks and benefits of the investment in the Shares and (ii) able to bear the economic risk of its investment
in the Shares for an indefinite period of time because the Shares have not been registered under the Securities Act (as defined
below) and therefore cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration
is available.  Subscriber is capable of evaluating the merits and risks of its investment in the Company and has the capacity
to protect its own interests.  The Subscriber must bear the economic risk of this investment until the Shares are sold pursuant
to:  (i) an effective registration statement under the Securities Act or (ii) an exemption from registration available
with respect to such sale.  The Subscriber is able to bear the economic risks of an investment in the Shares and to afford
a complete loss of the Subscriber’s investment in the Shares.

 

2.1.5  Access
to Information; Independent Investigation.  Prior to the execution of this Agreement, the Subscriber has had the opportunity
to ask questions of and receive answers from representatives of the Company concerning an investment in the Company, as well as
the finances, operations, business and prospects of the Company, and the opportunity to obtain additional information to verify
the accuracy of all information so obtained.  In determining whether to make this investment, the Subscriber has relied solely
on the Subscriber’s own knowledge and understanding of the Company and its business based upon the Subscriber’s own
due diligence investigation and the information furnished pursuant to this paragraph.  The Subscriber understands that no
person has been authorized to give any information or to make any representations which were not furnished pursuant to this Section 2
and the Subscriber has not relied on any other representations or information in making its investment decision, whether written
or oral, relating to the Company, its operations and/or its prospects.

 

2.1.6  Private
Offering.  The Subscriber represents that it is (a) an “accredited investor” as such term is defined in Rule
501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) or (b) not a “U.S.
Person” as defined in Rule 902 of Regulation S (“Regulation S”) under the Securities Act. The Subscriber acknowledges
the sale contemplated hereby is being made in reliance on a private placement exemption to “Accredited Investors”
within the meaning of Section 501(a) of Regulation D under the Securities Act or similar exemptions under state law or to a non-U.S.
Person under Regulation S. Accordingly, the Shares will be “restricted securities” within the meaning of Rule 144(a)(3)
under the Securities Act, and therefore may not be offered, pledged or sold by the Subscriber, directly or indirectly, in the
United States without registration under United States federal and state securities laws or an exemption therefrom and the Subscriber
understands the certificates representing the Shares (if any) will contain a legend in respect of such restrictions.

 

2.1.7  Investment
Purposes.  The Subscriber is purchasing the Shares solely for investment purposes, for the Subscriber’s own account
and not for the account or benefit of any other person, and not with a view towards the distribution or dissemination thereof. 
The Subscriber did not decide to enter into this Agreement as a result of any general solicitation or general advertising within
the meaning of Rule 502 under the Securities Act.

 

2.1.8  Restrictions
on Transfer; Shell Company.  The Subscriber understands the Shares are being offered in a transaction not involving a
public offering within the meaning of the Securities Act. The Shares have not been registered under the Securities Act, and, if
in the future the Subscriber decides to offer, resell, pledge or otherwise transfer the Shares, such Shares may be offered, resold,
pledged or otherwise transferred only (A) in accordance with the provisions of Regulation S (Rule 901 through 905), (B) pursuant
to a registration under the Securities Act, or (C) pursuant to an available exemption from registration. The Subscriber agrees
that if any transfer of its Shares or any interest therein is proposed to be made, as a condition precedent to any such transfer,
the Subscriber may be required to deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration
or an exemption, the Subscriber agrees not to resell the Shares. The Subscriber further acknowledges that because the Company
is a shell company, Rule 144 may not be available to the Subscriber for the resale of the Shares until one year following the
consummation of a business combination of the Company, despite technical compliance with the requirements of Rule 144 and the
release or waiver of any contractual transfer restrictions.

 

2.1.9  No
Governmental Consents.  No governmental, administrative or other third party consents or approvals are required, necessary
or appropriate on the part of the Subscriber in connection with the transactions contemplated by this Agreement.

 

    	 	2	 

     

    

 

2.2  Company’s
Representations, Warranties and Agreements.  To induce the Subscriber to purchase the Shares, the Company hereby represents
and warrants to the Subscriber and agrees with the Subscriber as follows:

 

2.2.1  Incorporation
and Corporate Power.  The Company is a Cayman Islands exempted company and is qualified to do business in every jurisdiction
in which the failure to so qualify would reasonably be expected to have a material adverse effect on the financial condition,
operating results or assets of the Company.  The Company possesses all requisite corporate power and authority necessary
to carry out the transactions contemplated by this Agreement.

 

2.2.2  No
Conflicts.  The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (i) the Memorandum and Articles of Association
of the Company, (ii) any agreement, indenture or instrument to which the Company is a party or (iii) any law, statute,
rule or regulation to which the Company is subject, or any agreement, order, judgment or decree to which the Company is subject.

 

2.2.3  Title
to Shares.  Upon issuance in accordance with, and payment pursuant to, the terms hereof, and registration on the register
of members of the Company, the Shares will be duly and validly issued, fully paid and nonassessable.  Upon issuance in accordance
with, and payment pursuant to, the terms hereof the Subscriber will have or receive good title to the Shares, free and clear of
all liens, claims and encumbrances of any kind, other than (a) transfer restrictions hereunder and under the other agreements
to which the Shares may be subject, (b) transfer restrictions under federal and state securities laws, and (c) liens,
claims or encumbrances imposed due to the actions of the Subscriber.

 

2.2.4  No
Adverse Actions.  There are no actions, suits, investigations or proceedings pending, threatened against or affecting
the Company which:  (i) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated
by this Agreement or (ii) question the validity or legality of any transactions or seeks to recover damages or to obtain
other relief in connection with any transactions.

 

3.  Forfeiture
of Shares.

 

3.1  Partial
or No Exercise of the Over-allotment Option.  In the event the Over-allotment Option granted to the underwriters of the
IPO is not exercised in full, the Subscriber acknowledges and agrees that it (and, if applicable, any transferee of Shares) shall
forfeit any and all rights to such number of Shares (up to an aggregate of 2,812,500 Shares and pro rata based upon the percentage
of the Over-allotment Option exercised) such that immediately following such forfeiture, the Subscriber (and any such transferees,
if any) will own an aggregate number of Shares (not including Ordinary Shares issuable upon exercise of any warrants or any securities
purchased by the Subscriber in the IPO or in the aftermarket) equal to 20% of the issued and outstanding Ordinary Shares immediately
following the IPO.

 

3.2  Termination
of Rights as Shareholder.  If any of the Shares are forfeited in accordance with this Section 3, then after such
time the Subscriber (or successor in interest), shall no longer have any rights as a holder of such forfeited Shares, and the
Company shall take such action as is appropriate to cancel such forfeited Shares.

 

4.  Waiver
of Liquidation Distributions; Redemption Rights.

 

In
connection with the Shares purchased pursuant to this Agreement, the Subscriber hereby waives any and all right, title, interest
or claim of any kind in or to any distributions by the Company from the trust account which will be established for the benefit
of the Company’s public shareholders and into which substantially all of the proceeds of the IPO will be deposited (the
“Trust Account”), in the event of a liquidation of the Company upon the Company’s failure to timely complete
an initial business combination.  For purposes of clarity, in the event the Subscriber purchases securities in the IPO or
in the aftermarket, any Ordinary Shares so purchased shall be eligible to receive any liquidating distributions by the Company. 
However, in no event will the Subscriber have the right to redeem any Ordinary Shares held by it into funds held in the Trust
Account upon the successful completion of an initial business combination.

 

    	 	3	 

     

    

 

5.  Restrictions
on Transfer.

 

5.1  Securities
Law Restrictions.  In addition to any restrictions to be contained in that certain letter agreement (commonly known as
an “Insider Letter”) dated on or prior to the closing of the IPO by and between the Subscriber and the Company,
the Subscriber agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Shares unless,
prior thereto (a) a registration statement on the appropriate form under the Securities Act and applicable state securities
laws with respect to the Shares proposed to be transferred shall then be effective or (b) the Company has received an opinion
from counsel reasonably satisfactory to the Company, that such registration is not required because such transaction is exempt
from registration under the Securities Act and the rules promulgated by the Securities and Exchange Commission thereunder
and with all applicable state securities laws.

 

5.2  Lock-up. 
Subscriber acknowledges that the Shares will be subject to lock-up provisions (the “Lock-up”) contained in
the Insider Letter.  

 

5.3  Restrictive
Legends.  All certificates representing the Shares shall have endorsed thereon legends substantially as follows:

 

“THESE
SECURITIES (i) HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT FILED UNDER THE SECURITIES ACT, (B) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE
904 OF REGULATION S UNDER THE SECURITIES ACT, (C) PURSUANT TO THE RESALE LIMITATIONS SET FORTH IN RULE 905 OF REGULATION S UNDER
THE SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE)
OR (E) PURSUANT TO ANY OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.”

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCKUP AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
OTHERWISE DISPOSED DURING THE TERM OF THE LOCKUP.”

 

5.4  Additional
Shares or Substituted Securities.  In the event of the declaration of a share capitalization, the declaration of an extraordinary
dividend payable in a form other than Shares, a spin-off, a share sub-division, an adjustment in conversion ratio, a recapitalization
or a similar transaction affecting the Company’s outstanding Ordinary Shares without receipt of consideration, any new,
substituted or additional securities or other property which are by reason of such transaction distributed with respect to any
Shares subject to this Section 5 or into which such Shares thereby become convertible shall immediately be subject to this
Section 5 and Section 3.  Appropriate adjustments to reflect the distribution of such securities or property shall
be made to the number and/or class of Ordinary Shares subject to this Section 5 and Section 3.

 

5.5  Registration
Rights.  The Subscriber acknowledges that the Shares are being purchased pursuant to an exemption from the registration
requirements of the Securities Act and will become freely tradable only after certain conditions are met or they are registered
pursuant to a registration rights agreement to be entered into with the Company prior to the closing of the IPO (the “Registration
Rights Agreement”).

 

6. Other
Agreements.

 

6.1  Further
Assurances.  The Subscriber agrees to execute such further instruments and to take such further action as may reasonably
be necessary to carry out the intent of this Agreement.

 

    	 	4	 

     

    

 

6.2  Notices. 
All notices, statements or other documents which are required or contemplated by this Agreement shall be:  (i) in writing
and delivered personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic
transmission to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or
such other address or fax number as may be designated in writing by such party and (iii) by electronic mail, to the electronic
mail address most recently provided to such party or such other electronic mail address as may be designated in writing by such
party.  Any notice or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered
personally, on the business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one
(1) business day after delivery to an overnight courier service or five (5) days after mailing if sent by mail.

 

6.3  Entire
Agreement.  This Agreement, together with the Insider Letter and the Registration Rights Agreement, each substantially
in the form to be filed as an exhibit to the Registration Statement, embodies the entire agreement and understanding between the
Subscriber and the Company with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings
relating to the subject matter hereof.

 

6.4  Modifications
and Amendments.  The terms and provisions of this Agreement may be modified or amended only by written agreement executed
by all parties hereto.

 

6.5  Waivers
and Consents.  The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted,
only by a written document executed by the party entitled to the benefits of such terms or provisions.  No such waiver or
consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement,
whether or not similar.  Each such waiver or consent shall be effective only in the specific instance and for the purpose
for which it was given, and shall not constitute a continuing waiver or consent.

 

6.6  Assignment. 
The rights and obligations under this Agreement may not be assigned by either party hereto without the prior written consent of
the other party.

 

6.7  Benefit. 
All statements, representations, warranties, covenants and agreements in this Agreement shall be binding on the parties hereto
and shall inure to the benefit of the respective successors and permitted assigns of each party hereto.  Nothing in this
Agreement shall be construed to create any rights or obligations except among the parties hereto, and no person or entity shall
be regarded as a third-party beneficiary of this Agreement.

 

6.8  Governing
Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and
governed by the laws of the State of New York applicable to contracts wholly performed within the borders of such state, without
giving effect to the conflict of law principles thereof.

 

6.9  Severability. 
In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof, contained in
this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited to the extent
that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect.  In the event
that such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions of this Agreement
shall nevertheless remain in full force and effect.

 

6.10  No
Waiver of Rights, Powers and Remedies.  No failure or delay by a party hereto in exercising any right, power or remedy
under this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power
or remedy of such party.  No single or partial exercise of any right, power or remedy under this Agreement by a party hereto,
nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any
other or further exercise thereof or the exercise of any other right, power or remedy hereunder.  The election of any remedy
by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies.  No notice
to or demand on a party not expressly required under this Agreement shall entitle the party receiving such notice or demand to
any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party giving
such notice or demand to any other or further action in any circumstances without such notice or demand.

 

    	 	5	 

     

    

 

6.11  Survival
of Representations and Warranties.  All representations and warranties made by the parties hereto in this Agreement or
in any other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution and delivery
hereof and any investigations made by or on behalf of the parties.

 

6.12  No
Broker or Finder.  Each of the parties hereto represents and warrants to the other that no broker, finder or other financial
consultant has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such a way as
to create any liability on the other.  Each of the parties hereto agrees to indemnify and save the other harmless from any
claim or demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming to
have been employed by or on behalf of such party and to bear the cost of legal expenses incurred in defending against any such
claim.

 

6.13  Headings
and Captions.  The headings and captions of the various subdivisions of this Agreement are for convenience of reference
only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

 

6.14  Counterparts. 
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile
transmission or any other form of electronic delivery, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an
original thereof.

  

6.15  Construction. 
The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  If an ambiguity or question
of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties hereto and no presumption
or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of any provision of this Agreement. 
The words “include,” “includes,” and “including” will be deemed to be
followed by “without limitation.”  Pronouns in masculine, feminine, and neuter genders will be construed
to include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the
context otherwise requires.  The words “this Agreement,” “herein,” “hereof,”
“hereby,” “hereunder,” and words of similar import refer to this Agreement as a whole and
not to any particular subdivision unless expressly so limited.  The parties hereto intend that each representation, warranty,
and covenant contained herein will have independent significance.  If any party hereto has breached any representation, warranty,
or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating
to the same subject matter (regardless of the relative levels of specificity) which such party hereto has not breached will not
detract from or mitigate the fact that such party hereto is in breach of the first representation, warranty, or covenant.

 

6.16  Mutual
Drafting.  This Agreement is the joint product of the Subscriber and the Company and each provision hereof has been subject
to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against any party hereto.

 

7.  Voting
and Tender of Shares. The Subscriber agrees to vote the Shares in favor of an initial business combination that the Company
negotiates and submits for approval to the Company’s shareholders and shall not seek redemption or repurchase with respect
to any of the Shares.  Additionally, the Subscriber agrees not to tender any Shares in connection with a tender offer presented
to the Company’s shareholders in connection with an initial business combination negotiated by the Company.

 

8.  Indemnification.
Each party shall indemnify the other against any loss, cost or damages (including reasonable attorney’s fees and expenses)
incurred as a result of such party’s breach of any representation, warranty, covenant or agreement in this Agreement.

 

[Signature
Page Follows]

 

    	 	6	 

     

    

 

If
the foregoing accurately sets forth our understanding and agreement, please sign the enclosed copy of the Agreement and return
it to us.

 

	 	Very
    truly yours,
	 	 
	 	FTAC
    HERA ACQUISITION CORP.
	 	 	 
	 	By:	/s/
    Daniel G. Cohen
	 	 	Name:
    Daniel G. Cohen
	 	 	Title:  President
    and Chief Executive Officer

 

	Accepted
    and agreed as of the date first written above.	 
	 	 
	FTAC
    HERA SPONSOR, LLC	 
	 	 	 
	By:	/s/
    Betsy Z. Cohen	 
	 	Name:
    Betsy Z. Cohen	 
	 	Title:  Sole
    Member	 

 

[Signature
page to Subscription Agreement]

 

 

7Exhibit 10.1

 

iPOWER INC.

 

2020 EQUITY INCENTIVE PLAN

 

1.                 
Purposes of the Plan. The purposes of this Plan are:

 

		·	to attract and retain the best available personnel for positions of substantial responsibility,

 

		·	to provide incentives to individuals who perform services for the Company, and

 

		·	to promote the success of the Company’s business.

 

The Plan permits the
grant of Incentive Stock Options, Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Performance Units, Performance Shares and other stock or cash awards as the Administrator may determine.

 

2.                 
Definitions. As used herein, the following definitions will apply:

 

(a)              
“Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance
with Section 4 hereof.

 

(b)              
“Affiliate” means any corporation or any other entity (including, but not limited to, partnerships and
joint ventures) controlling, controlled by, or under common control with the Company.

 

(c)              
“Applicable Laws” means the requirements relating to the administration of equity-based awards under
U.S. federal and state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system
on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are,
or will be, granted under the Plans.

 

(d)              
“Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares and other stock or cash awards as the Administrator
may determine.

 

(e)              
“Award Agreement” means the written agreement setting forth the terms and provisions applicable to each
Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan.

 

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

 

(g)              
“Change in Control” means the occurrence of any of the following events after the Effective Date:

 

		(i)	A change in the ownership of the Company which occurs on the date that any one person, or more
than one person acting as a group (“Person”), acquires ownership of stock in the Company that, together with
the stock already held by such Person, constitutes more than 50% of the total voting power of the stock of the Company; provided,
however, that for purposes of this subsection (i), the acquisition of additional stock by any Person who is considered to own more
than 50% of the total voting power of the stock of the Company before the acquisition will not be considered a Change in Control;
or

 

 

 

 

    	 	1	 

     

    

 

		(ii)	The individuals who constitute the members of the Board cease, by reason of a financing, merger,
combination, acquisition, takeover or other non-ordinary course transaction affecting the Company, to constitute at least fifty-one
percent (51%) of the members of the Board; or

 

		(iii)	The consummation of any of the following events: (A) a change in the ownership of a substantial
portion of the Company’s assets, which occurs on the date that any Person acquires (or has acquired during the twelve (12)
month period ending on the date of the most recent acquisition by such Person) assets from the Company that have a total gross
fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately
prior to such acquisition or acquisitions, or (B) a merger, consolidation or reorganization involving the Company, where either
or both of the events described in clauses (i) or (ii) above would be the result. For purposes of this subsection (iii), the following
will not constitute a change in the ownership of a substantial portion of the Company’s assets or a Change in Control: (A)
a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer
of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect
to the Company’s stock, (2) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly,
by the Company, (3) a Person that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding
stock of the Company, or (4) an entity, at least 50% of the total equity or voting power of which is owned, directly or indirectly,
by a Person described in subsection (iii)(B)(3) above. For purposes of this subsection (iii), gross fair market value means the
value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities
associated with such assets.

 

For purposes of this
Section 2(g), persons will be considered to be acting as a group if they are owners of a corporation or other entity that enters
into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

 

(h)              
“Code” means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein
will be a reference to any successor or amended section of the Code.

 

(i)                
“Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed
by the Board in accordance with Section 4 hereof.

 

(j)                
“Common Stock” means the Class A common stock, par value $0.001 per share, of the Company.

 

(k)              
“Company” means iPower Inc., a Nevada corporation, or any successor thereto.

 

(l)               
“Consultant” means any person, including an advisor, other than an Employee engaged by the Company or
a Parent, Subsidiary or Affiliate to render services to such entity.

 

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

 

(n)              
“Disability” means permanent and total disability as defined in Section 22(e)(3) of the Code, provided
that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent
and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time
to time.

 

 

 

 

    	 	2	 

     

    

 

(o)              
“Effective Date” shall have the meaning set forth in Section 17 hereof.

 

(p)              
“Employee” means any person, including Officers and Directors, other than a Consultant employed by the
Company or any Parent, Subsidiary or Affiliate of the Company. Neither service as a Director nor payment of a director’s
fee by the Company will be sufficient to constitute “employment” by the Company.

 

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

 

(r)               
“Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in
exchange for Awards of the same type (which may have lower exercise prices and different terms), Awards of a different type, and/or
cash, and/or (ii) the exercise price of an outstanding Award is reduced. The Administrator will determine the terms and conditions
of any Exchange Program in its sole discretion.

 

(s)               
“Fair Market Value” means, as of any date, the value of the Common Stock as the Administrator may determine
in good faith, by reference to the closing price of such stock on any established stock exchange or on a national market system
on the day of determination, if the Common Stock is so listed on any established stock exchange or on a national market system.
If the Common Stock is not listed on any established stock exchange or on a national market system, the value of the Common Stock
will be determined as the Administrator may determine in good faith using (i) a valuation methodology set forth in Treasury Regulation
1.409A-1(b)(5)(iv)(B) or (ii) with respect to valuations applicable to Awards that are not subject to Code Section 409A, such other
valuation methods as the Administrator may select.

 

(t)                
“Fiscal Year” means the fiscal year of the Company.

 

(u)              
“Incentive Stock Option” means an Option that by its terms qualifies and is otherwise intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

 

(v)              
“Nonstatutory Stock Option” means an Option that by its terms does not qualify or expressly provides
that it is not intended to qualify as an Incentive Stock Option.

 

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

 

(x)              
“Option” means a stock option granted pursuant to Section 6 hereof.

 

(y)              
“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e)
of the Code.

 

(z)              
“Participant” means the holder of an outstanding Award.

 

(aa)            
“Performance Goals” will have the meaning set forth in Section 11 hereof.

 

(bb)           
“Performance Period” means any Fiscal Year of the Company or such other period as determined by the Administrator
in its sole discretion.

 

 

 

 

    	 	3	 

     

    

 

(cc)           
“Performance Share” means an Award denominated in Shares which may be earned in whole or in part upon
attainment of Performance Goals or other vesting criteria as the Administrator may determine pursuant to Section 10 hereof.

 

(dd)          
“Performance Unit” means an Award which may be earned in whole or in part upon attainment of Performance
Goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities
or a combination of the foregoing pursuant to Section 10 hereof.

 

(ee)           
“Period of Restriction” means the period during which transfers of Shares of Restricted Stock are subject
to restrictions and, therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the
passage of time, the achievement of target levels of performance, or the occurrence of other events specified in the applicable
Award, as interpreted and construed by the Administrator.

 

(ff)             
“Plan” means this iPower Inc. 2020 Equity Incentive Plan.

 

(gg)          
“Restricted Stock” means Shares issued pursuant to an Award of Restricted Stock under Section 8
hereof, or issued pursuant to the early exercise of an Option.

 

(hh)          
“Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value
of one Share, granted pursuant to Section 9 hereof. Each Restricted Stock Unit represents an unfunded and unsecured obligation
of the Company.

 

(ii)             
“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion
is being exercised with respect to the Plan.

 

(jj)             
“Section 16(b)” means Section 16(b) of the Exchange Act.

 

(kk)          
“Service Provider” means an Employee, Director, or Consultant.

 

(ll)             
“Share” means a share of the Common Stock, as adjusted in accordance with Section 14 hereof.

 

(mm)          “Stock Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant
to Section 7 is designated as a Stock Appreciation Right.

 

(nn)          
“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined
in Section 424(f) of the Code.

 

3.                 
Stock Subject to the Plan.

 

(a)              
Subject to the provisions of Section 14 hereof, the maximum aggregate number of Shares that may be awarded and sold
under the Plan is THIRTY MILLION (30,000,000) Shares. The Shares may be authorized, but unissued, or reacquired Common Stock.

 

 

 

 

    	 	4	 

     

    

 

(b)              
Lapsed Awards. If an Award expires or becomes unexercisable without having been exercised in full, or, with respect
to Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units, is forfeited to or repurchased by the Company,
the unpurchased Shares (or for Awards other than Options and Stock Appreciation Rights, the forfeited or repurchased Shares) which
were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated). Upon exercise
of a Stock Appreciation Right settled in Shares, the gross number of Shares covered by the portion of the Award so settled will
cease to be available under the Plan. Shares that have actually been issued under the Plan under any Award will not be returned
to the Plan and will not become available for future distribution under the Plan; provided, however, that if unvested Shares of
Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units are repurchased by the Company or are forfeited
to the Company, such Shares will become available for future grant under the Plan. Shares subject to an Award that are transferred
to or retained by the Company to pay the tax and/or exercise price of an Award will become available for future grant or sale under
the Plan. To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing
the number of Shares available for issuance under the Plan and, for the elimination of doubt, the number of Shares of equal value
to such cash payment shall become available for future grant or sale under the Plan. Notwithstanding the foregoing provisions of
this Section 3(b), subject to adjustment provided in Section 14 hereof, the maximum number of Shares that may be issued upon
the exercise of Incentive Stock Options will equal the aggregate Share number stated in Section 3(a) above, plus, to the extent
allowable under Section 422 of the Code, any Shares that become available for issuance under the Plan under this Section 3(b).

 

(c)              
Share Reserve. The Company, during the term of this Plan, will at all times reserve and keep available such number
of Shares as will be sufficient to satisfy the requirements of the Plan.

 

4.                 
Administration of the Plan.

 

(a)              
Procedure.

 

		(i)	Multiple Administrative Bodies. Different Committees may be established with respect to
different groups of Service Providers; in that event, the Committee established with respect to a group of Service Providers shall
administer the Plan with respect to Awards granted to members of such group.

 

		(ii)	Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule
16b-3, the transactions contemplated hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3.

 

		(iii)	Other Administration. Other than as provided above, the Plan will be administered by (A) the
Board or (B) a Committee, which committee will be constituted to satisfy Applicable Laws.

 

(b)              
Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the
specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

 

		(i)	to determine Fair Market Value;

 

		(ii)	to select the Service Providers to whom Awards may be granted hereunder;

 

		(iii)	to determine the terms and condition, not inconsistent with the terms of the Plan, of any Award
granted hereunder;

 

 

 

 

    	 	5	 

     

    

 

		(iv)	to institute an Exchange Program and to determine the terms and conditions, not inconsistent with
the terms of the Plan, for (1) the surrender or cancellation of outstanding Awards in exchange for Awards of the same type, Awards
of a different type, and/or cash, or (2) the reduction of the exercise price of outstanding Awards;

 

		(v)	to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan;

 

		(vi)	to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and
regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws;

 

		(vii)	to modify or amend each Award (subject to Section 19(c) hereof);

 

		(viii)	to authorize any person to execute on behalf of the Company any instrument required to reflect
or implement the grant of an Award previously granted by the Administrator;

 

		(ix)	to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that
would otherwise be due to such Participant under an Award pursuant to such procedures as the Administrator may determine consistent
with the requirements for compliance with or exemption from the provisions of Code Section 409A; and

 

		(x)	to make all other determinations deemed necessary or advisable for administering the Plan.

 

(c)              
Effect of Administrator’s Decision. The Administrator’s decisions, determinations, and interpretations
will be final and binding on all Participants and any other holders of Awards.

 

5.                 
Eligibility. Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance
Units, Performance Shares, and such other cash or stock awards as the Administrator determines may be granted to Service Providers.
Incentive Stock Options may be granted only to Employees.

 

6.                 
Stock Options.

 

(a)              
Limitations.

 

		(i)	Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a
Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the
Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar
year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000 (U.S.), such Options will be treated as Nonstatutory
Stock Options. For purposes of this Section 6(a), Incentive Stock Options will be taken into account in the order in which
they were granted. The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares
is granted.

 

		(ii)	Subject to the limits set forth in Section 3, the Administrator will have complete discretion to
determine the number of Shares subject to an Option granted to any Participant.

 

(b)              
Term of Option. The Administrator will determine the term of each Option in its sole discretion; provided, however,
that the term will be no more than ten (10) years from the date of grant thereof in the case of Incentive Stock Options Moreover,
in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns
stock representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary,
the term of the Incentive Stock Option will be five (5) years from the date of grant or such shorter term as may be provided in
the Award Agreement.

 

 

 

 

    	 	6	 

     

    

 

(c)              
Option Exercise Price and Consideration.

 

		(i)	Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise
of an Option will be determined by the Administrator, but will be no less than 100% of the Fair Market Value per Share on the date
of grant. In addition, in the case of an Incentive Stock Option granted to an Employee who, at the time the Incentive Stock Option
is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company or any Parent or Subsidiary,
the per Share exercise price will be no less than 110% of the Fair Market Value per Share on the date of grant. Notwithstanding
the foregoing provisions of this Section 6(c), Options may be granted with a per Share exercise price of less than 100% of the
Fair Market Value per Share on the date of grant pursuant to the issuance or assumption of an Option in a transaction to which
Section 424(a) of the Code applies in a manner consistent with said Section 424(a).

 

		(ii)	Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator will
fix the period within which the Option may be exercised and will determine any conditions that must be satisfied before the Option
may be exercised.

 

		(iii)	Form of Consideration. The Administrator will determine the acceptable form(s) of consideration
for exercising an Option, including the method of payment, to the extent permitted by Applicable Laws including but not limited
to tendering capital stock of the Company owned by a Participant, duly endorsed for transfer to the Company.

 

(d)              
Exercise of Option.

 

		(i)	Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder will be exercisable
according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth
in the Award Agreement. An Option may not be exercised for a fraction of a Share.
	 	 	 
	 	 	An Option
will be deemed exercised when the Company receives: (i) notice of exercise (in such form as the Administrator specifies from
time to time) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which
the Option is exercised (together with any applicable withholding taxes). No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as provided in Section 14 hereof.

 

		(ii)	Termination of Relationship as a Service Provider. If a Participant ceases to be a Service
Provider, other than upon the Participant’s termination as the result of the Participant’s death or Disability, the
Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that
the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth
in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for three
(3) months following the Participant’s termination. Unless otherwise provided by the Administrator, if on the date of termination
the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert
to the Plan. If after termination the Participant does not exercise his or her Option within the time specified by Award Agreement
or by operation of this Section 6(d)(3), the Option will terminate, and the Shares covered by such Option will revert to the Plan.

 

 

 

 

    	 	7	 

     

    

 

		(iii)	Disability of Participant. If a Participant ceases to be a Service Provider as a result
of the Participant’s Disability, the Participant may exercise his or her Option within such period of time as is specified
in the Award Agreement to the extent the Option is vested on the date of cessation (but in no event later than the expiration of
the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option
will remain exercisable for six (6) months following the date the Participant ceases to be a Service Provider. Unless otherwise
provided by the Administrator, if on the date of cessation the Participant is not vested as to his or her entire Option, the Shares
covered by the unvested portion of the Option will revert to the Plan. If after cessation the Participant does not exercise his
or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to
the Plan.

 

		(iv)	Death of Participant. If a Participant dies while a Service Provider, the Option may be
exercised within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date
of death (but in no event may the option be exercised later than the expiration of the term of such Option as set forth in the
Award Agreement), by the Participant’s beneficiary, provided such beneficiary has been designated prior to Participant’s
death in a form acceptable to the Administrator. If no such beneficiary has been designated by the Participant, then such Option
may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred
pursuant to the Participant’s will or in accordance with the laws of descent and distribution. In the absence of a specified
time in the Award Agreement, the Option will remain exercisable for six (6) months following Participant’s death. Unless
otherwise provided by the Administrator, if at the time of death Participant is not vested as to his or her entire Option, the
Shares covered by the unvested portion of the Option will continue to vest in accordance with the Award Agreement. If the Option
is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert
to the Plan.

 

7.                 
Stock Appreciation Rights.

 

(a)              
Grant of Stock Appreciation Rights. Subject to the terms and conditions of the Plan, a Stock Appreciation Right may
be granted to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion.

 

(b)              
Number of Shares. The Administrator will have complete discretion to determine the number of Stock Appreciation Rights
granted to any Participant.

 

(c)              
Exercise Price and Other Terms. The Administrator, subject to the provisions of the Plan, will have complete discretion
to determine the terms and conditions of Stock Appreciation Rights granted under the Plan; provided, however, that the exercise
price will be not less than 100% of the Fair Market Value of a Share on the date of grant.

 

(d)              
Stock Appreciation Rights Agreement. Each Stock Appreciation Right grant will be evidenced by an Award Agreement
that will specify the exercise price, the number of Shares with respect to which the Award is granted, the term of the Stock Appreciation
Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.

 

(e)              
Expiration of Stock Appreciation Rights. A Stock Appreciation Right granted under the Plan will expire upon the date
determined by the Administrator, in its sole discretion, and set forth in the Award Agreement; provided, however, that the term
will be no more than ten (10) years from the date of grant thereof. Notwithstanding the foregoing, the rules of Section 6(d)
above also will apply to Stock Appreciation Rights.

 

(f)               
Payment of Stock Appreciation Right Amount. Upon exercise of a Stock Appreciation Right, a Participant will be entitled
to receive payment from the Company in an amount determined by multiplying:

 

		(i)	The difference between the Fair Market Value of a Share on the date of exercise over the “stock
appreciation right exercise price,” as defined under Treasury Regulation Section 1.409A-1(b)(i)(B)(2), i.e., the Fair
Market Value of a Share on the date of grant of the Stock Appreciation Right; times

 

 

 

 

    	 	8	 

     

    

 

		(ii)	The number of Shares with respect to which the Stock Appreciation Right is exercised.

 

At the discretion of
the Administrator, the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or in some
combination thereof.

 

8.                 
Restricted Stock.

 

(a)              
Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from
time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion,
will determine.

 

(b)              
Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify
the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole
discretion, will determine.

 

(c)              
Transferability. Except as provided in this Section 8, Shares of Restricted Stock may not be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated until such Shares become non-forfeitable at the end of the applicable Period of
Restriction.

 

(d)              
Other Restrictions. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted
Stock as it may deem advisable or appropriate.

 

(e)              
Removal of Restrictions. Except as otherwise provided in this Section 8, Shares of Restricted Stock covered by each
Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period
of Restriction. The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.

 

(f)               
Voting Rights. During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder
may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise in a manner not prohibited
by the Award Agreement.

 

(g)              
Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted
Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided
in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions
on transferability and provisions for forfeiture as the Shares of Restricted Stock with respect to which they were paid.

 

(h)              
Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which
restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan.

 

9.                 
Restricted Stock Units.

 

(a)              
Grant. Restricted Stock Units may be granted at any time and from time to time as determined by the Administrator.
Each Restricted Stock Unit grant will be evidenced by an Award Agreement that will specify such other terms and conditions as the
Administrator, in its sole discretion, will determine in accordance with the terms and conditions of the Plan, including all terms,
conditions, and restrictions related to the grant, the number of Restricted Stock Units and the form of payout, which, subject
to Section 9(d) hereof, may be left to the discretion of the Administrator.

 

 

 

 

    	 	9	 

     

    

 

(b)              
Vesting Criteria and Other Terms. The Administrator will set vesting criteria in its discretion, which, depending
on the extent to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant.
After the grant of Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive any restrictions for
such Restricted Stock Units. Each Award of Restricted Stock Units will be evidenced by an Award Agreement that will specify the
vesting criteria, and such other terms and conditions as the Administrator, in its sole discretion will determine. The Administrator,
in its discretion, may accelerate the time at which any restrictions will lapse or be removed, subject to the prohibition on acceleration
of the timing of distribution of deferred compensation subject to Section 409A of the Code, to the extent applicable to the Award.

 

(c)              
Earning Restricted Stock Units. Upon meeting the applicable vesting criteria, the Participant will be entitled to
receive a payout as specified in the Award Agreement.

 

(d)              
Form and Timing of Payment. Payment of earned Restricted Stock Units will be made as soon as practicable after the
date(s) set forth in the Award Agreement, which shall satisfy the requirements of Section 409A of the Code, to the extent applicable
to such Award. The Administrator, in its sole discretion, may pay earned Restricted Stock Units in cash, Shares, or a combination
thereof. Shares represented by Restricted Stock Units that are fully paid in cash again will be available for grant under the Plan.

 

(e)              
Cancellation. On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited
to the Company.

 

10.             
Performance Units and Performance Shares.

 

(a)              
Grant of Performance Units/Shares. Performance Units and Performance Shares may be granted to Service Providers at
any time and from time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have
complete discretion in determining the number of Performance Units/Shares granted to each Participant.

 

(b)              
Value of Performance Units/Shares. Each Performance Unit will have an initial value that is established by the Administrator
on or before the date of grant. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on
the date of grant.

 

(c)              
Performance Objectives and Other Terms. The Administrator will set performance objectives or other vesting provisions.
The Administrator may set vesting criteria based upon the achievement of Company-wide, business unit, or individual goals (including,
but not limited to, continued employment), or any other basis determined by the Administrator in its discretion. Each Award of
Performance Units/Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such other terms
and conditions as the Administrator, in its sole discretion, will determine.

 

(d)              
Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance
Units/Shares will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the
Performance Period, to be determined as a function of the extent to which the corresponding performance objectives or other vesting
provisions have been achieved. After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce
or waive any performance objectives or other vesting provisions for such Performance Unit/Share.

 

(e)              
Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance Units/Shares will be made as
soon as practicable after the expiration of the applicable Performance Period or, if earlier, after the date on which a Participant’s
interest in such Performance Units/Shares is no longer subject to a substantial risk of forfeiture, provided however, that in no
event shall such payment be made after the later to occur of (i) December 31 of the year in which such risk of forfeiture lapses
or (ii) two and one-half months after such risk of forfeiture lapses. The Administrator, in its sole discretion, may pay earned
Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned
Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof.

 

 

 

 

    	 	10	 

     

    

 

(f)               
Cancellation of Performance Units/Shares. On the date set forth in the Award Agreement, all unearned or unvested
Performance Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan.

 

11.             
Leaves of Absence. Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended
during any unpaid leave of absence. A Service Provider will not cease to be an Employee in the case of (i) any leave of absence
approved by the Company, or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary.
For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon expiration of such
leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not
so guaranteed, then six (6) months and one day following the commencement of such leave any Incentive Stock Option held by the
Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock
Option.

 

12.             
Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such
Award may only be transferred (i) by will, (ii) by the laws of descent and distribution, (iii) to a revocable trust, or (iv) as
permitted by Rule 701 of the Securities Act of 1933, as amended.

 

13.             
Adjustments; Dissolution or Liquidation; Merger or Change in Control.

 

(a)              
Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities,
or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of
the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, will adjust the number and class of Shares that may be delivered under the
Plan and/or the number, class, and price of Shares covered by each outstanding Award, and the numerical Share limits set forth
in Sections 3, 6, 7, 8, 9 and 10 hereof.

 

(b)              
Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, any corporate
separation or division, including, but not limited to, a split-up, a split-off or a spin-off; a reverse merger in which the Company
is the surviving entity, but the shares of Company stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash or otherwise; or the transfer of more than fifty percent
(50%) of the then outstanding voting stock of the Company to another person or entity. the Administrator will notify each Participant
as soon as practicable prior to the effective date of such proposed transaction. The Company, to the extent permitted by applicable
law but otherwise in its sole discretion may provide for: (i) the continuation Awards by the Company (if the Company is surviving
entity or its parent; (ii) the assumption of the Plan and such outstanding Awards by the surviving entity or its parent; (iii)
the substitution by the surviving entity or its parent of rights with substantially the same terms for such outstanding Awards;
or (iv) the cancellation of such outstanding Rights without payment of any consideration provided that in the case of this clause
(iv), the Administrator will provide notice of its intention to cancel Award and offer a reasonable opportunity to exercise vested
Awards.

 

(c)              
Change in Control. In the event of a merger or Change in Control, each outstanding Award will be treated as the Administrator
determines, including, without limitation, that each Award will be assumed or an equivalent option or right substituted by the
successor corporation or a Parent or Subsidiary of the successor corporation (the “Successor Corporation”).
The Administrator will not be required to treat all Awards similarly in the transaction.

 

In the event that the
Successor Corporation does not assume or substitute for the Award, the Participant will fully vest in and have the right to exercise
all of his or her outstanding Options and Stock Appreciation Rights, including Shares as to which such Awards would not otherwise
be vested or exercisable, all restrictions on Restricted Stock will lapse, and, with respect to Restricted Stock Units, Performance
Shares and Performance Units, all Performance Goals or other vesting criteria will be deemed achieved at target levels and all
other terms and conditions met. In addition, if an Option or Stock Appreciation Right is not assumed or substituted for in the
event of a Change in Control, the Administrator will notify the Participant in writing or electronically that the Option or Stock
Appreciation Right will be fully vested and exercisable for a period of time determined by the Administrator in its sole discretion,
and the Option or Stock Appreciation Right will terminate upon the expiration of such period.

 

 

 

 

    	 	11	 

     

    

 

For the purposes of
this subsection (c), an Award will be considered assumed if, following the Change in Control, the Award confers the right to purchase
or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash,
or other securities or property) or, in the case of a Stock Appreciation Right upon the exercise of which the Administrator determines
to settle in cash or a Performance Share or Performance Unit which the Administrator can determine to settle in cash, the fair
market value of the consideration received in the merger or Change in Control by holders of Common Stock for each Share held on
the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Change in
Control is not solely common stock of the Successor Corporation, the Administrator may, with the consent of the Successor Corporation,
provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a
Performance Share or Performance Unit, for each Share subject to such Award (or in the case of Performance Units, the number of
implied shares determined by dividing the value of the Performance Units by the per share consideration received by holders of
Common Stock in the Change in Control), to be solely common stock of the Successor Corporation equal in fair market value to the
per share consideration received by holders of Common Stock in the Change in Control.

 

Notwithstanding anything
in this Section 13(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more Performance
Goals will not be considered assumed if the Company or its successor modifies any of such Performance Goals without the Participant’s
consent; provided, however, a modification to such Performance Goals only to reflect the Successor Corporation’s post-Change
in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.

 

14.             
Tax Withholding

 

(a)              
Withholding Requirements. At any time prior to or following the delivery of any Shares or cash pursuant to an Award
(or exercise thereof), the Company will have the power and the right to deduct or withhold, or require a Participant to remit to
the Company, an amount sufficient to satisfy federal, state, local, foreign or other taxes (including the Participant’s FICA
obligation) required to be withheld with respect to such Award (or exercise thereof).

 

(b)              
Withholding Arrangements. The Administrator, in its sole discretion and pursuant to such procedures as it may specify
from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation)
(i) paying cash, (ii) electing to have the Company withhold otherwise deliverable cash or Shares having a Fair Market Value
equal to the minimum amount required to be withheld, (iii) delivering to the Company already-owned Shares having a Fair Market
Value equal to the amount required to be withheld, or (iv) selling a sufficient number of Shares otherwise deliverable to
the Participant through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise)
equal to the amount required to be withheld. The amount of the withholding requirement will be deemed to include any amount which
the Administrator agrees may be withheld at the time the election is made, not to exceed the amount determined by using the maximum
federal, state or local marginal income tax rates applicable to the Participant with respect to the Award on the date that the
amount of tax to be withheld is to be determined. The Fair Market Value of the Shares to be withheld or delivered will be determined
as of the date that the taxes are required to be withheld.

 

15.             
No Effect on Employment or Service. Neither the Plan nor any Award will confer upon a Participant any right with
respect to continuing the Participant’s relationship as a Service Provider with the Company, nor will they interfere in any
way with the Participant’s right or the Company’s right to terminate such relationship at any time, with or without
cause, to the extent permitted by Applicable Laws.

 

16.             
Date of Grant. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes
the determination granting such Award, or such other later date as is determined by the Administrator. Notice of the determination
will be provided to each Participant within a reasonable time after the date of such grant.

 

17.             
Term of Plan. Subject to Section 21 hereof, the Plan will become effective upon its adoption by the Board (the
“Effective Date”). It will continue in effect for a term of ten (10) years unless terminated earlier under Section 18
hereof; provided, however, that such expiration shall not affect Awards then outstanding, and the terms and conditions of this
Plan shall continue to apply to such Awards.

 

 

 

 

    	 	12	 

     

    

 

18.             
Amendment and Termination of the Plan.

 

(a)              
Amendment and Termination. The Administrator may at any time amend, alter, suspend or terminate the Plan.

 

(b)             
Stockholder Approval. Subject to Section 21, the Company will obtain stockholder approval of the Plan and any Plan
amendment to the extent necessary or desirable to comply with Applicable Laws.

 

(c)              
Effect of Amendment or Termination. No amendment, alteration, suspension, or termination of the Plan will impair
the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement
must be in writing and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such
termination.

 

19.             
Conditions Upon Issuance of Shares.

 

(a)              
Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award
and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel
for the Company with respect to such compliance.

 

(b)              
Investment Representations. As a condition to the exercise of an Award, the Company may require the person exercising
such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation
is required.

 

(c)              
Restrictive Legends. All Award Agreements and all securities of the Company issued pursuant thereto shall bear such
legends regarding restrictions on transfer and such other legends as the appropriate officer of the Company shall determine to
be necessary or advisable to comply with applicable securities and other laws.

 

20.             
Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
will not have been obtained.

 

21.             
Stockholder Approval. The Plan will be subject to approval by the stockholders of the Company within twelve (12)
months after the date the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree
required under Applicable Laws, including without limitation Section 422 of the Code. In the event that stockholder approval is
not obtained within twelve (12) months after the date the Plan is adopted by the Board, all Incentive Stock Options granted hereunder
shall be void ab initio and of no effect. Notwithstanding any other provisions of the Plan, no Awards shall be exercisable
until the date of such stockholder approval.

 

22.             
Notification of Election Under Section 83 of the Code. If any Service Provider shall, in connection with the acquisition
of Shares under the Plan, make an election permitted under either Section 83(b) or Section 83(i) of the Code, such Service Provider
shall notify the Company of such election within ten (10) days of filing notice of the election with the Internal Revenue Service
and provide the Company with a copy thereof, in addition to any filing and a notification required pursuant to regulations issued
under the authority of Sections 83(b) or 83(i) of the Code, as applicable. A Service Provider shall not be permitted to make a
Section 83(b) election with respect to an Award of a Restricted Stock Unit.

 

 

 

 

    	 	13	 

     

    

 

23.             
Notification Upon Disqualifying Disposition Under Section 421(b) of the Code. Each Service Provider shall notify
the Company of any disposition of Shares issued pursuant to the exercise of an Incentive Stock Option under the circumstances described
in Section 421(b) of the Code (relating to certain disqualifying dispositions), within ten (10) days of such disposition.

 

24.             
409A Timing Rule for Specified Employees. If at the time of a Service Provider’s separation from service, such
individual is considered a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, and if
any payment that such Service Provider becomes entitled to under the Plan or any Award is deemed payable on account of such individual’s
separation from service, then no such payment shall be made prior to the date that is the earlier of (i) six months and one day
after the individual’s separation from service, or (ii) the individual’s death.

 

25.             
Governing Law. The law of the State of Nevada shall govern all questions concerning the construction, validity and
interpretation of this Plan, without regard to such state’s conflict of laws rules, subject to the Company’s intention
that the Plan satisfy the requirements of jurisdictions outside of the United States of America with respect to Awards subject
to such jurisdictions.

 

26.             
General Provisions.

 

(a)              
No Rights as Stockholder.Except as specifically provided in this plan, a Participant or a transferee of an Award
shall have no rights as a stockholder with respect to any shares covered by the Award until the date of the issuance of such shares
to the Participant, and no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other
property) or distributions of other rights for which the record date is prior to the date such Stock is issued.

 

(b)              
Other Compensation Arrangements.Nothing contained in this Plan shall prevent the Board from adopting other or
additional compensation arrangements, subject to stockholder approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases.

 

(c)              
Disqualifying Dispositions.Any participant who shall make a “disposition” (as defined in Section
424 of the Code) of all or any portion of an Incentive Stock Option within two (2) years from the date of grant of such Incentive
Stock Option or within (1) year after the issuance of the shares of Stock acquired upon exercise of such Incentive Stock Option
shall be required to immediately advise the Company in writing as to the occurrence of the sale and the price realized upon the
sale of such shares of Stock.

 

(d)              
Regulatory MattersEach Stock Option Agreement and Stock Purchase Agreement shall provide that no shares shall
be purchased or sold thereunder unless and until (i) any then applicable requirements of state or federal laws and regulatory agencies
shall have been fully compiled with to the satisfaction of the Company and its counsel and (ii) if required to do so by the Company,
the Optionee or Offeree shall have executed and delivered to the Company a letter of investment intent in such form and containing
such provisions as the Board or Committee may require.

 

(e)              
Delivery.Upon exercise of an Award granted under this Plan, the Company shall issue Stock or pay any amounts
due within a reasonable period of time thereafter. Subject to any statutory obligations the Company may otherwise have, for purposes
of this Plan, thirty days shall be considered a reasonable period of time.

 

(f)               
Other Provisions.The Stock Option Agreements and Stock Purchase Agreements authorized under the Plan may contain
such other provisions not inconsistent with this Plan, including, without limitation, restrictions upon the exercise of the Rights,
as the Administrator may deem advisable.

 

(g)              
Section 409A. Awards under the Plan are intended either to be exempt from the rules of Section 409A of the Code or
to satisfy those rules, and the Plan and such awards shall be construed accordingly. Granted rights may be modified at any time,
in the Administrator’s direction, so as to increase the likelihood of exemption from or compliance with the rules of Section
409A of the Code.

 

 

 

 

    	 	14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00320-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00320-of-00352.parquet"}]]