Document:

Exhibit

Exhibit 10.1

ADVANSIX INC.
DEFERRED COMPENSATION PLAN

AdvanSix Inc., a Delaware corporation (the “Company”), hereby establishes the AdvanSix Inc. Deferred Compensation Plan (the “Plan”), effective January 1, 2018 (the “Effective Date”), for the purpose of attracting and retaining high quality executives and Directors, and promoting in them increased efficiency and an interest in the successful operation of the Company.  The Plan is intended to, and shall be interpreted to, comply in all respects with Code Section 409A and those provisions of ERISA applicable to an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of “management or highly compensated employees,” although no warranty as to such compliance is made.

ARTICLE I
DEFINITIONS

1.1    “Account” or “Accounts” shall mean the bookkeeping account or accounts established under this Plan pursuant to Article 4.

1.2     “Administrative Committee” shall mean the AdvanSix Inc. Retirement Plans Administrative Committee.

1.3     “Base Salary” shall mean a Participant’s annual base salary, excluding incentive and discretionary bonuses, commissions, reimbursements and other non-regular remuneration, received from the Company prior to reduction for any salary deferrals under benefit plans sponsored by the Company, including but not limited to, plans established pursuant to Code Section 125 or qualified pursuant to Code Section 401(k).

1.4.     “Beneficiary” or “Beneficiaries” shall mean the person, persons or entity designated as such pursuant to Section 7.1. 

1.5    “Board” shall mean the Board of Directors of the Company.

1.6    “Bonus(es)” shall mean cash awards, under any annual incentive plan established by the Company, paid to the Participant by the Company before reductions for contributions to or deferrals under any pension, deferred compensation or benefit plans sponsored by the Company.  

1.7    “Change in Control Event” means the occurrence of any of the following events following the Effective Date:

(i)during any period of 24 consecutive calendar months, individuals who were Directors of the Company on the first day of such period (the “Incumbent Directors”) cease for any reason to constitute a majority of the Board; provided, however, that any individual becoming a Director subsequent to the first day of such period whose election, or nomination for election, by the Company’s stockholders was approved by a vote of at least a majority of the Incumbent Directors shall be considered as though such individual were an Incumbent Director, but excluding, for purposes of this proviso, any such individual whose initial assumption of office occurs as a result of an actual or 

threatened proxy contest with respect to election or removal of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a “person” (as used in Section 13(d) of the Exchange Act) (a “Person”), in each case other than the Board;
(ii)the consummation of (A) a merger, consolidation, statutory share exchange or similar form of corporate transaction involving (x) the Company or (y) any of its Subsidiaries, but in the case of this clause (y) only if Company Voting Securities (as defined below) are issued or issuable (each of the events referred to in this clause (A) being hereinafter referred to as a “Reorganization”) or (B) the sale or other disposition of all or substantially all the assets of the Company to an entity that is not an Affiliate (a “Sale”), unless, immediately following such Reorganization or Sale, (1) all or substantially all the Persons who were the “beneficial owners” (as used in Rule 13d-3 under the Exchange Act (or a successor rule thereto)) of the securities eligible to vote for the election of the Board (“Company Voting Securities”) outstanding immediately prior to the consummation of such Reorganization or Sale continue to beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting securities of the corporation or other entity resulting from such Reorganization or Sale (including a corporation or other entity that, as a result of such transaction, owns the Company or all or substantially all the Company’s assets either directly or through one or more subsidiaries) (the “Continuing Company”) in substantially the same proportions as their ownership, immediately prior to the consummation of such Reorganization or Sale, of the outstanding Company Voting Securities (excluding, for such purposes, any outstanding voting securities of the Continuing Company that such beneficial owners hold immediately following the consummation of the Reorganization or Sale as a result of their ownership prior to such consummation of voting securities of any corporation or other entity involved in or forming part of such Reorganization or Sale other than the Company), (2) no Person (excluding any employee benefit plan (or related trust) sponsored or maintained by the Continuing Company or any entity controlled by the Continuing Company) beneficially owns, directly or indirectly, 30% or more of the combined voting power of the then outstanding voting securities of the Continuing Company and (3) at least a majority of the members of the board of directors of the Continuing Company were Incumbent Directors at the time of the execution of the definitive agreement providing for such Reorganization or Sale or, in the absence of such an agreement, at the time at which approval of the Board was obtained for such Reorganization or Sale;
(iii) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company unless such liquidation or dissolution is part of a transaction or series of transactions described in paragraph (ii) above that does not otherwise constitute a Change in Control; or 
(iv)any Person, corporation or other entity or “group” (as used in Section 13(d) of the Exchange Act) (other than (A) the Company, (B) any trustee or other fiduciary holding securities under an employee benefit plan of the Company or an Affiliate or (C) any entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of the voting power of the Company Voting Securities) becomes the beneficial owner, directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company Voting Securities; provided, however, that for purposes of this subparagraph (iv), the following acquisitions shall not constitute a Change in Control:  (w) any acquisition directly from the Company, (x) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or an Affiliate, (y) any acquisition by an underwriter temporarily holding such Company Voting Securities pursuant to an offering of such securities or any acquisition by a pledgee of Company Voting Securities holding such securities as collateral or temporarily holding such securities upon foreclosure of the underlying obligation or (z) any acquisition pursuant to a Reorganization or Sale that does not constitute a Change in Control for purposes of subparagraph (ii) above;

provided that, to the extent any Award provides for the payment of non-qualified deferred compensation subject to Section 409A of the Code,  an event set forth above shall not constitute a “Change in Control” unless it also constitutes a “change in ownership”, a “change in the effective control” or a “change in the ownership of substantial assets” of the Company within the meaning of Treasury Regulation Section 1.409A-3(i)(5) and such limitation is necessary to avoid an impermissible distribution or other event resulting in adverse tax consequences under Section 409A of the Code.

1.8    “Code” shall mean the Internal Revenue Code of 1986, as amended, as interpreted by Treasury regulations and applicable authorities promulgated thereunder.

1.9    “Company Contributions” shall mean the contributions made by the Company pursuant to Section 3.3. 

1.10    “Company Contribution Account” shall mean the Account maintained for the benefit of the Participant that is credited with Company Contributions, if any, pursuant to Section 4.2. 

1.11    “Compensation” shall mean all amounts eligible for deferral for a particular Plan Year under Section 3.1.

1.12    “Crediting Rate” shall mean the notional gains and losses credited on the Participant’s Account balance that are based on the Participant’s allocation among the investment alternatives made available or mandated by the Investment Committee pursuant to Section 3.4 of the Plan.

1.13    “Deferral Account” shall mean an Account maintained for each Participant that is credited with Participant deferrals pursuant to Section 4.1

1.14    “Director” shall mean a non-employee member of the Board. 

1.15    “Director’s Fees” shall mean cash compensation for services as a Director, excluding reimbursement of expenses or other non‐regular forms of compensation, before reductions for contributions to or deferrals under any deferred compensation plan sponsored by the Company. 

1.16    “Distributable Amount” shall mean the vested balance in the applicable Account as determined under Article 4.

1.17    “Eligible Executive” shall mean a Director or a highly compensated or management level employee of an Employer selected by the Chief Human Resources Officer to be eligible to participate in the Plan. 

1.18    “Employer(s)” shall be defined as follows:

(a)Except as otherwise provided in part (b) of this Section, the term “Employer” shall mean the Company and/or any of its subsidiaries (now in existence or hereafter formed or acquired) that have been selected by the Board to participate in the Plan and have adopted the Plan as a sponsor.  

(b)For the purpose of determining whether a Participant has experienced a Separation from Service, the term “Employer” shall mean:
 

(1)The entity for which the Participant performs services and with respect to which the legally binding right to compensation deferred or contributed under this Plan arises; and 
(2)All other entities with which the entity described above would be aggregated and treated as a single employer under Code Section 414(b) (controlled group of corporations) and Code Section 414(c) (a group of trades or businesses, whether or not incorporated, under common control), as applicable.  In order to identify the group of entities described in the preceding sentence, the Administrative Committee shall use an ownership threshold of at least 50% as a substitute for the 80% minimum ownership threshold that appears in, and otherwise must be used when applying, the applicable provisions of (A) Code Section 1563 for determining a controlled group of corporations under Code Section 414(b), and (B) Treas. Reg. §1.414(c)-2 for determining the trades or businesses that are under common control under Code Section 414(c).
 
1.19    “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, including Department of Labor and Treasury regulations and applicable authorities promulgated thereunder.

1.20    “Financial Hardship” shall mean a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in Code Section 152, without regard to Code Section 152(b)(1), (b)(2), and (d)(1)(B)) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, but shall in all events correspond to the meaning of the term “unforeseeable emergency” under Code Section 409A.
 
1.21    “Fund” or “Funds” shall mean one or more of the investments selected by the Investment Committee pursuant to Section 3.4 of the Plan.

1.22    “Hardship Distribution” shall mean an accelerated distribution of benefits or a cancellation of deferral elections pursuant to Section 6.4 to a Participant who has suffered a Financial Hardship.

1.23    “Interest Rate” shall mean, for each Fund, the rate of return derived from the net gain or loss on the assets of such Fund, as determined by the Investment Committee.

1.24    “Investment Committee” shall mean the AdvanSix Inc. Retirement Plans Investment Committee.

1.25    “Participant” shall mean any Eligible Executive who becomes a Participant in this Plan in accordance with Article 2.

1.26    “Participant Election(s)” shall mean the forms or procedures by which a Participant makes elections, to the extent applicable, with respect to (a) voluntary deferrals of his/her Compensation, (b) the Funds, which shall act as the basis for crediting of interest on Account balances, and (c) the form and timing of distributions from Accounts.  Participant Elections may take the form of an electronic communication followed by appropriate confirmation according to specifications established by the Administrative Committee.

1.27    “Payment Date” shall mean the date by which a total distribution of the Distributable Amount shall be made or the date by which installment payments of the Distributable Amount shall commence.
  

(a)For benefits triggered by the Participant’s Separation from Service, the Payment Date shall be the first business day of the January or July, whichever is earlier, that occurs after completion of the six-month period directly following the Separation from Service, and the applicable amount shall be calculated as of the last business day of the month preceding the Payment Date.  Subsequent installments, if any, shall be made in January of each Plan Year following the Plan Year in which the initial installment payment was payable and shall be calculated as of the last business day of the preceding December;  

(b)For benefits triggered by the death of a Participant, the Payment Date shall be the first business day of the month commencing after the month in which the death occurs, and the applicable amount shall be calculated as of the last business day of the month in which the death occurs.  In the case of death, the Administrative Committee shall be provided with documentation reasonably necessary to establish the fact of the Participant’s death;

(c)For the benefit triggered by a Change in Control Event, the Payment Date shall be the first business day of the month commencing after the month in which the Change in Control Event occurs, and the applicable amount shall be calculated as of the last business day of the month in which the Change in Control Event occurs; provided, however, a Participant may elect, upon commencement of participation in the Plan, for the Payment Date for the benefit payable upon a Change in Control Event to be the date that is the first business day of the month that is fifteen (15) months following the month in which the Change in Control Event occurs, in which case the applicable amount shall be calculated as of the last business day of the month preceding the Payment Date. Subsequent installments, if any, shall be made in January of each Plan Year following the Plan Year in which the initial installment payment was payable and shall be calculated as of the last business day of the preceding December; and

(d)The Payment Date of a Scheduled Distribution shall be in the first quarter of the Plan Year in which the distribution is scheduled to commence, and the applicable Distributable Amount shall be calculated as of the last business day of the preceding December. Subsequent installments, if any, shall be calculated as of the last business day of December of each succeeding Plan Year after the initial calculation, and shall be made in January of each Plan Year following the Plan Year in which the initial installment payment was payable. 

Notwithstanding the foregoing, the Payment Date shall not be before the earliest date on which benefits may be distributed under Code Section 409A without violation of the provisions thereof, as reasonably determined by the Administrative Committee.  

1.28    “Performance-Based Compensation” shall mean cash compensation the entitlement to or amount of which is contingent on the satisfaction of pre-established organizational or individual performance criteria relating to a performance period of at least 12 consecutive months, as determined in accordance with Treas. Reg. §1.409A-1(e).

1.29    “Plan Year” shall mean the calendar year, except that the first Plan Year shall begin on the Effective Date and end on the last day of the calendar year in which the Effective Date occurs.

1.30    “Qualified Plan” shall mean the AdvanSix Inc. Savings Plan, or such other Company-sponsored qualified defined contribution plan as may be established from time to time. 

1.31    “Scheduled Distribution” shall mean a scheduled distribution date elected by the Participant for distribution of amounts from a Scheduled Distribution Account, including notional earnings thereon, as provided under Section 6.3. 

1.32    “Scheduled Distribution Account” shall mean a Participant Deferral Account to which a Scheduled Distribution election pursuant to Section 6.3 applies. 

1.33    “Separation Account” shall mean the Participant Account distributable in the event of the Participant’s Separation from Service in accordance with Section 6.1.
 
1.34    “Separation from Service” shall mean a termination of services provided by a Participant to his or her Employer, whether voluntarily or involuntarily, other than by reason of death, as determined by the Administrative Committee in accordance with Treas. Reg. §1.409A-1(h).  In determining whether a Participant has experienced a Separation from Service, the following provisions shall apply: 

(a)For a Participant who provides services to an Employer as an employee or as a Director, except as otherwise provided in part (c) of this Section, a Separation from Service shall occur when such Participant has experienced a termination of employment or service with such employer.  A Participant shall be considered to have experienced a termination of employment or service when the facts and circumstances indicate that the Participant and his or her employer reasonably anticipate that either (i) no further services will be performed for the employer after a certain date, or (ii) that the level of bona fide services the Participant will perform for the employer after such date (whether as an employee or as an independent contractor) will permanently decrease to no more than 20% of the average level of bona fide services performed by such Participant (whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services to the employer if the Participant has been providing services to the Employer less than 36 months).  

If a Participant is on military leave, sick leave, or other bona fide leave of absence, the employment relationship between the Participant and the Employer shall be treated as continuing intact, provided that the period of such leave does not exceed 6 months, or if longer, so long as the Participant retains a right to reemployment with the Employer under an applicable statute or by contract.  If the period of a military leave, sick leave, or other bona fide leave of absence exceeds 6 months and the Participant does not retain a right to reemployment under an applicable statute or by contract, the employment relationship shall be considered to be terminated for purposes of this Plan as of the first day immediately following the end of such 6-month period.  In applying the provisions of this paragraph, a leave of absence shall be considered a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Employer.
 
(b)For a Participant, if any, who provides services to an Employer as an independent contractor, except as otherwise provided in part (c) of this Section, a Separation from Service shall occur upon the expiration of the contract (or in the case of more than one contract, all contracts) under which services are performed for such Employer, provided that the expiration of such contract(s) is determined by the Administrative Committee to constitute a good-faith and complete termination of the contractual relationship between the Participant and such Employer. 

(c)For a Participant, if any, who provides services to an Employer as both an employee and an independent contractor, a Separation from Service generally shall not occur until the Participant has ceased providing services for such Employer as both an employee and as an 

independent contractor, as determined in accordance with the provisions set forth in parts (a) and (b) of this Section, respectively.    

Notwithstanding the foregoing provisions in this part (c), if a Participant provides services for an Employer as both an employee and as a Director, to the extent permitted by Treas. Reg. §1.409A-1(h)(5) the services provided by such Participant as a Director shall not be taken into account in determining whether the Participant has experienced a Separation from Service as an employee, and the services provided by such Participant as an employee shall not be taken into account in determining whether the Participant has experienced a Separation from Service as a Director.

1.35    “Stock” shall mean AdvanSix Inc. common stock, $0.01 par value per share, or any other equity securities of the Company designated by the Investment Committee.

ARTICLE II 
PARTICIPATION

2.1    Enrollment Requirements; Commencement of Participation 
 
(a)As a condition to participation, each Eligible Executive shall complete, execute and return to the Administrative Committee the appropriate Participant Elections, as well as such other documentation and information as such committee reasonably requests, by the deadline(s) established by such committee.  In addition, the Administrative Committee shall establish from time to time such other enrollment requirements as it determines, in its sole discretion, are necessary. 

(b)Each Eligible Executive shall commence participation in the Plan on the date that the Administrative Committee determines that the Eligible Executive has met all enrollment requirements set forth in this Plan and required by such committee, including returning all required documents to such committee within the specified time period.

(c)If an Eligible Executive fails to meet all requirements established by the Administrative Committee within the period required, that Eligible Executive shall not be eligible to participate in the Plan during the applicable Plan Year.

ARTICLE III
CONTRIBUTIONS & DEFERRAL ELECTIONS

3.1    Elections to Defer Compensation.   Elections to defer Compensation shall take the form of a whole percentage (less applicable payroll withholding requirements for Social Security and income taxes and employee benefit plans, as determined in the sole and absolute discretion of the Administrative Committee) of up to a maximum of: 

(1)75% of Base Salary,
(2)90% of Bonuses, and
(3)100% of Director’s Fees.

The Administrative Committee may, in its sole discretion, adjust for subsequent Plan Years on a prospective basis the maximum deferral percentages described in this Section for one or more types 

of Compensation (including, without limitation, for particular types of Bonuses) and for one or more subsequent Plan Years; such revised deferral percentages shall be indicated on a Participant Election form.  Notwithstanding the foregoing, in no event shall the maximum deferral percentages be adjusted after the last date on which deferral elections for the applicable type(s) of Compensation must be submitted and become irrevocable in accordance with Section 3.2 below and the requirements of Code Section 409A.  

Notwithstanding the foregoing, the Administrative Committee may determine that one or more types of Compensation shall not be made available for deferral for one or more subsequent Plan Years and, consistent with such determination, the impacted types of Compensation shall not appear on a Participant Election form. 

3.2    Timing of Deferral Elections; Effect of Participant Election(s). 

(a)General Timing Rule for Deferral Elections.  Except as otherwise provided in this Section 3.2, in order for a Participant to make a valid election to defer Compensation, the Participant must submit Participant Election(s) on or before the deadline established by the Administrative Committee, which shall be no later than the December 31st preceding the Plan Year in which such compensation will be earned.
  
Any deferral election made in accordance with this Section 3.2(a) shall be irrevocable; provided, however, that if the Administrative Committee permits or requires Participants to make a deferral election by the deadline described above for an amount that qualifies as Performance-Based Compensation, the Administrative Committee may permit a Participant to subsequently change his or her deferral election for such compensation by submitting new Participant Election(s) in accordance with Section 3.2(c) below.

(b)Timing of Deferral Elections for New Plan Participants.  An Eligible Executive who first becomes eligible to participate in the Plan prior to or as of the Effective Date for the Plan, or on or after the beginning of a Plan Year, as determined in accordance with Treas. Reg. §1.409A-2(a)(7)(ii) and the “plan aggregation” rules provided in Treas. Reg. §1.409A-1(c)(2), may be permitted to make an election to defer the portion of Compensation attributable to services to be performed after such election, provided that the Participant submits Participant Election(s) on or before the deadline established by the Administrative Committee, which in no event shall be later than thirty (30) days after the Participant first becomes eligible to participate in the Plan.
  
If a deferral election made in accordance with this Section 3.2(b) relates to compensation earned based upon a specified performance period, the amount eligible for deferral shall be equal to (i) the total amount of compensation for the performance period, multiplied by (ii) a fraction, the numerator of which is the number of days remaining in the service period after the Participant’s deferral election is made, and the denominator of which is the total number of days in the performance period.
 
Any deferral election made in accordance with this Section 3.2(b) shall become irrevocable no later than the 30th day after the date the Participant first becomes eligible to participate in the Plan.

(c)Timing of Deferral Elections for Performance-Based Compensation.  Subject to the limitations described below, the Administrative Committee may determine that an irrevocable deferral election for an amount that qualifies as Performance-Based Compensation may be made by submitting Participant Election(s) on or before the deadline established by the Administrative 

Committee, which in no event shall be later than six (6) months before the end of the performance period.  

In order for a Participant to be eligible to make a deferral election for Performance-Based Compensation in accordance with the deadline established pursuant to this Section 3.2(c), the Participant must have performed services continuously from the later of (i) the beginning of the performance period for such compensation, or (ii) the date upon which the performance criteria for such compensation are established, through the date upon which the Participant makes the deferral election for such compensation.  In no event shall a deferral election submitted under this Section 3.2(c) be permitted to apply to any amount of Performance-Based Compensation that has become readily ascertainable.

(d)Timing Rule for Deferral of Compensation Subject to Risk of Forfeiture.  With respect to compensation (i) to which a Participant has a legally binding right to payment in a subsequent year, and (ii) that is subject to a forfeiture condition requiring the Participant’s continued services for a period of at least twelve (12) months from the date the Participant obtains the legally binding right, the Administrative Committee may determine that an irrevocable deferral election for such compensation may be made by timely delivering Participant Election(s) to such committee in accordance with its rules and procedures, no later than the 30th day after the Participant obtains the legally binding right to the compensation, provided that the election is made at least twelve (12) months in advance of the earliest date at which the forfeiture condition could lapse, as determined in accordance with Treas. Reg. §1.409A-2(a)(5). 

Any deferral election(s) made in accordance with this Section 3.2(d) shall become irrevocable no later than the 30th day after the Participant obtains the legally binding right to the compensation subject to such deferral election(s).
  
(e)Duration of Compensation Deferral Elections; “Evergreening”.  A Participant may increase, decrease, terminate or recommence a deferral election with respect to Compensation for any subsequent Plan Year by filing a Participant Election during the enrollment period established by the Administrative Committee prior to the beginning of such Plan Year (or at such other time contemplated under this Section 3.2), which election shall be effective on the first day of the next following Plan Year (unless otherwise specified on the Participant Election).  In the absence of an affirmative election by the Participant to the contrary, the deferral election(s) for a Plan Year shall continue in effect for future Plan Years.

3.3    Company Contributions. 
 
(a)Discretionary Company Contributions.  The Company may make discretionary Company Contributions to the Plan Accounts of employee Participants (which amounts may vary among Participants and which may be zero), as determined by the Company in its sole discretion from time to time.  Any such discretionary Company Contributions shall be made in the complete and sole discretion of the Company, and no Participant shall have the right to receive any such contributions in any particular Plan Year or otherwise regardless of whether such contributions are made on behalf of other Participants.  Company Contributions will in no event be made to the Accounts of Directors.

(b)Company Qualified Plan Makeup Contributions.  The Company may, in its sole discretion, make a Company Contribution on behalf of an employee Participant for each Plan 

Year in which the Participant makes a deferral of a minimum of one percent (1%) of Base Salary under this Plan, which amount shall equal (i) the maximum company contribution that would have been provided to the Participant under the Qualified Plan if the deferrals made under this Plan had been made under the Qualified Plan (disregarding the compensation limit determined under Section 401(a)(17) of the Code that applies under the Qualified Plan), minus (ii) the amount of company contributions actually credited to the Participant under the Qualified Plan for such Plan Year (and not thereafter forfeited pursuant to the discrimination testing and other compliance processes in effect under the Qualified Plan). Company Qualified Plan Makeup Contributions shall be made in the complete and sole discretion of the Company, and no Participant shall have the right to receive any such contributions in any particular Plan Year or otherwise regardless of whether such contributions are made on behalf of other Participants.

3.4    Investment Elections. 
 
(a)Participant Designation.  At the time of entering the Plan and/or of making a deferral election under the Plan, the Participant shall designate, on a Participant Election provided by the Administrative Committee, the Funds in which the Participant’s Accounts shall be deemed to be invested for purposes of determining the amount of earnings and losses to be credited to each Account.  The Participant may specify that all or any percentage of his or her Accounts shall be deemed to be invested, in whole percentage increments, in one or more of the Funds selected as alternative investments under the Plan from time to time by the Investment Committee pursuant to subsection (b) of this Section.  If a Participant fails to make an election among the Funds as described in this section, the Participant’s Account balance shall automatically be allocated into the lowest-risk Fund, as determined by the Investment Committee in its sole discretion.  A Participant may change any designation made under this Section as permitted by filing a revised election, on a Participant Election form. Notwithstanding the foregoing, the Administrative Committee or Investment Committee, each in its sole discretion, may impose limitations on the frequency with which one or more of the Funds elected in accordance with this Section may be added or deleted by such Participant and similarly, in their sole discretion, may impose limitations on the frequency with which the Participant may change the portion of his or her Account balance allocated to each previously or newly elected Fund.
 
(b)Investment Funds. The Investment Committee may select, in its sole and absolute discretion, each of the types of commercially available investments communicated to the Participant pursuant to subsection (a) of this Section to be the Funds.  The Interest Rate of each such commercially available investment shall be used to determine the amount of earnings or losses to be credited to the Participant’s Account under Article IV.  The Participant’s choice among investments shall be solely for purposes of calculation of the Crediting Rate on Accounts.  The Company and the Employers shall have no obligation to set aside or invest amounts as directed by the Participant and, if the Company and/or the Employer elects to invest amounts as directed by the Participant, the Participant shall have no more right to such investments than any other unsecured general creditor.

(c)Crediting of Director’s Fees to AdvanSix Inc. Stock Unit Fund.
  
(i)    Until a Director meets AdvanSix’s stock ownership guidelines, the only Investment Fund available under the Plan to a Participant Director will be a fund based upon the Company’s Stock (the “AdvanSix Inc. Stock Unit Fund”), an allocation option available only to Director Participants and only for deferrals from Director’s Fees, and not any other source of income.  On a Director’s satisfaction of the AdvanSix stock ownership guidelines, a Participant Director may 

elect to allocate his or her deferrals to any Fund provided under the Plan.  However, any deferrals into the AdvanSix Inc. Stock Unit Fund will be irrevocably allocated to such fund. Deferrals allocated to a Fund other than the AdvanSix Inc. Stock Unit Fund can be transferred into the AdvanSix Inc. Stock Unit Fund, provided, however, that on transfer, the deferrals will become irrevocably allocated. Director’s Fees allocated to the AdvanSix Inc. Stock Unit Fund shall only be distributable in actual shares of Stock; provided, however, that any fractional shares shall be distributable as cash.  

 (ii)    Any stock dividends, cash dividends or other non-cash dividends applicable to the Director’s Fees credited to the AdvanSix Inc. Stock Unit Fund shall be credited in the form of additional Stock units and shall automatically and irrevocably be deemed to be re-invested in the AdvanSix Inc. Stock Unit Fund until such amounts are distributed to the Participant.  The number of Stock units credited to the Participant’s Account(s) for a particular stock dividend shall be equal to (A) the number of Stock units credited to the Participant’s Account(s) as of the payment date for such dividend in respect of each share of Stock, multiplied by (B) the number of additional or fractional shares of Stock actually paid as a dividend in respect of each share of Stock.  The number of Stock units credited to the Participant’s Account(s) for a particular cash dividend or other non-cash dividend shall be equal to (A) the number of Stock units credited to the Participant’s Account(s) as of the payment date for such dividend in respect of each share of Stock, multiplied by (B) the fair market value of the dividend, divided by (C) the “fair market value” (as defined below) of the Stock on the payment date for such dividend.
  
(iii)    The number and/or value of Stock units credited to the Participant’s Account(s) shall be adjusted by the Investment Committee to prevent dilution or enlargement of Participants’ rights with respect to the portion of his or her Account(s) allocated to the AdvanSix Inc. Stock Unit Fund in the event of any reorganization, reclassification, stock split, or other change in capitalization or unusual corporate transaction or event as determined by the Investment Committee. Any such adjustment shall be determined by the Investment Committee in its sole discretion and shall be made in the same manner used to adjust the Stock or in such other manner as the Investment Committee deems equitable or appropriate to preserve Participants’ rights under the Plan in parity with the rights of holders of Stock.

(iv)    For purposes of this Section, the fair market value of the Stock shall be, in the event the Stock is traded on a recognized securities exchange, an amount equal to the closing price of the Stock on such exchange on the date set for valuation or, if no sales of Stock were made on said exchange on that date, the closing price of the Stock on the next preceding day on which sales were made on such exchange; or, if the Stock is not so traded, the value determined, in its sole discretion, by the Investment Committee in compliance with Section 409A.

3.5    Distribution Elections.

(a)Initial Election; “Evergreening”.  At the time of making a deferral election under the Plan, the Participant shall designate the time and form of distribution of deferrals made pursuant to such election (together with any earnings credited thereon) from among the alternatives specified under Article VI for the applicable distribution.  At the time of a Participant’s initial enrollment in the Plan, a Participant must elect the form of distribution for the Separation Account, and for purposes of distribution, any Company Contributions shall be allocated to such Separation Account elected during the Participant’s initial enrollment. Notwithstanding the foregoing, the Administrative Committee may, in its sole discretion, permit a separate distribution election, including the election of a Scheduled Distribution, for one or more Company Contributions pursuant to a 

Participant Election filed during an enrollment period established by the Administrative Committee; any such distribution election shall comply with the timing requirements under Section 3.2 above or as otherwise permitted in accordance with Code Section 409A, and such separate distribution election shall only apply to the identified Company Contribution(s).  A new distribution election may be made at the time of subsequent deferral elections with respect to deferrals in Plan Years beginning after the election is made, in accordance with the Participant Election forms.  However, in the absence of an affirmative election by the Participant to the contrary, the distribution election(s) for a Plan Year shall continue in effect for future Plan Years. Notwithstanding the foregoing, distribution election(s) for Scheduled Distributions shall not be applied to a future Plan Year to the extent that the minimum deferral period in effect for the applicable future Plan Year would not be satisfied; in such event, the applicable deferrals will be deemed to have been allocated to the Separation Account and shall be distributable in accordance with the election for the Separation Account.
  
(b)Modification of Election.  A distribution election with respect to previously deferred amounts may only be changed under the terms and conditions specified in Code Section 409A and this Section.  Except as permitted under Code Section 409A, no acceleration of a distribution is permitted.  A subsequent election that delays payment or changes the form of payment for the Separation Account, for a Scheduled Distribution Account, or for the Change in Control Benefit, shall be permitted if and only if all of the following requirements are met: 

(1)the new election does not take effect until at least twelve (12) months after the date on which the new election is made;

(2)the new election delays payment for at least five (5) years from the date that payment would otherwise have been made, absent the new election; and 

(3)in the case of payments made according to a Scheduled Distribution, the new election is made not less than twelve (12) months before the date on which payment would have been made (or, in the case of installment payments, the first installment payment would have been made) absent the new election.

For purposes of application of the above change limitations, installment payments shall be treated as a single payment under Code Section 409A and only five (5) changes shall be allowed to be made by a Participant with respect to each Account.  Election changes made pursuant to this Section shall be made in accordance with rules established by the Administrative Committee and shall comply with all requirements of Code Section 409A and applicable authorities.

ARTICLE IV
ACCOUNTS

4.1    Deferral Accounts.  The Administrative Committee shall establish and maintain Deferral Accounts for each Participant under the Plan, of which one (1) shall be the Separation Account and the remainder shall be Scheduled Distribution Accounts in a maximum number to be determined by the Administrative Committee in its sole discretion.  Each Participant’s Deferral Accounts shall be further divided into separate subaccounts (“Fund Subaccounts”), each of which corresponds to a Fund designated pursuant to Section 3.4.  A Participant’s Deferral Accounts shall be credited as follows:

(a)As soon as reasonably practicable after amounts are withheld and deferred from a Participant’s Compensation, the Administrative Committee shall credit the Fund Subaccounts of the Participant’s Deferral Accounts with an amount equal to Compensation deferred by the Participant in accordance with the designation under Section 3.4; that is, the portion of the Participant’s deferred Compensation designated to be deemed to be invested in a Fund shall be credited to the Fund Subaccount to be invested in that Fund;

(b)Each business day, each Fund Subaccount of a Participant’s Deferral Accounts shall be credited with earnings or losses in an amount equal to that determined by multiplying the balance credited to such Fund Subaccount as of the prior day, less any distributions valued as of the end of the prior day, by the Interest Rate for the corresponding Fund as determined pursuant to Section 3.4(b); and
 
(c)In the event that a Participant elects for a given Plan Year’s deferral of Compensation a Scheduled Distribution, all amounts attributed to the deferral of Compensation for such Plan Year shall be accounted for in a manner which allows separate accounting for the deferral of Compensation and investment gains and losses associated with amounts allocated to each such separate Scheduled Distribution.

4.2    Company Contribution Account.  The Administrative Committee shall establish and maintain a Company Contribution Account for each Participant under the Plan.  For purposes of a Participant’s distribution elections, Company Contributions shall be subject to distribution in the form applicable to the Separation Account, except as otherwise provided in accordance with Section 3.5.  Each Participant’s Company Contribution Account shall be further divided into separate Fund Subaccounts corresponding to the Fund designated pursuant to Section 3.4(a).  A Participant’s Company Contribution Account shall be credited as follows:

(a)As soon as reasonably practicable after a Company Contribution is made, the Company shall credit the Fund Subaccounts of the Participant’s Company Contribution Account with an amount equal to the Company Contributions, if any, made on behalf of that Participant, that is, the proportion of the Company Contributions, if any, designated to be deemed to be invested in a certain Fund shall be credited to the Fund Subaccount to be invested in that Fund; and

(b)Each business day, each Fund Subaccount of a Participant’s Company Contribution Account shall be credited with earnings or losses in an amount equal to that determined by multiplying the balance credited to such Fund Subaccount as of the prior day, less any distributions valued as of the end of the prior day, by the Interest Rate for the corresponding Fund as pursuant to Section 3.4(b).
 
(c)In the event that a Participant is permitted by the Administrative Committee to elect a Scheduled Distribution for one or more Company Contributions, such Company Contributions shall be accounted for in a manner which allows separate accounting for the Company Contribution and investment earnings, gains and losses allocated to each such separate Scheduled Distribution.

4.3    Trust.  The Company shall be responsible for the payment of all benefits under the Plan.  At its discretion, the Company may establish one or more grantor trusts for the purpose of providing for payment of benefits under the Plan.  Such trust or trusts may be irrevocable, but the assets thereof shall be subject to the claims of the Company’s creditors.  Benefits paid to the Participant from any 

such trust or trusts shall be considered paid by the Company for purposes of meeting the obligations of the Company under the Plan.

4.4    Statement of Accounts.  The Administrative Committee shall provide each Participant with electronic statements at least quarterly setting forth the Participant’s Account balance as of the end of each applicable period.

ARTICLE V
VESTING 

5.1    Vesting of Deferral Accounts.  The Participant shall be vested at all times in amounts credited to the Participant’s Deferral Accounts.

5.2    Vesting of Company Contribution Account.
  
(a)Discretionary Company Contributions credited to the Participant’s Company Contribution Account shall be vested based upon the schedule or schedules determined by the Company in its sole discretion and communicated to the Participant.

(b)Company Qualified Plan Make Up Contributions credited to the Participant’s Company Contribution Account shall be vested based upon the vesting schedule applicable to the Qualified Plan. 

(c)In the event of a Participant’s death prior to Separation from Service or a 
Change in Control Event occurring prior to a Participant’s Separation from Service, regardless of the Participant’s vesting schedule provided above, the Participant’s Company Contribution Account shall be fully vested. 
 

ARTICLE VI
DISTRIBUTIONS

6.1    Separation from Service Distributions.  

(a)Timing and Form of Separation from Service Distributions.  Except as otherwise provided herein, in the event of a Participant’s Separation from Service, the Distributable Amount credited to the Participant’s Separation Account (including all vested Company Contributions) shall be paid to the Participant in a lump sum on the Payment Date following the Participant’s Separation from Service, unless the Participant has made an alternative benefit election on a timely basis to receive substantially equal annual installments over up to fifteen (15) years.    

(b)Small Benefit Exception.  Notwithstanding any Separation Account distribution election to the contrary, if as of the date of the Separation from Service the total Distributable Amount payable by reason of the Participant’s Separation from Service (including vested Company Contributions) is less than or equal to twenty-five thousand dollars ($25,000), such Distributable Amount payable by reason of the Participant’s Separation from Service shall be paid in a lump sum on the applicable Payment Date.

6.2    Death Benefits.

(a)Timing and Form of Death Benefit Distribution.  Notwithstanding any provision in this Plan to the contrary, in the event that the Participant dies prior to complete distribution of his or her Accounts under the Plan, the Participant’s Beneficiary or estate shall receive a death benefit equal to the Distributable Amount (or remaining Distributable Amount in the event installment payments have commenced) credited to the Participant’s Deferral Accounts and Company Contribution Account in a lump sum on the Payment Date following the Participant’s death.

(b)    Additional Taxable Death Benefit in the Event of Death Prior to Separation from Service.   In the event that (i) a Participant dies prior to Separation from Service and (ii) the Participant is an insured under a corporate-owned life insurance policy owned by an Employer (or a trust for which an Employer is the grantor) at the time of his or her death, then, in addition to the distribution described in Section 6.2(a) above, such Participant’s Beneficiary will also be entitled to a taxable death benefit under this Plan of fifty thousand dollars ($50,000) to be distributed on the Payment Date following the Participant’s death.  The Participant and his/her Beneficiary shall have no interest or right in any corporate-owned life insurance policy, and the payment under this Section 6.2(b) shall not be derived from any policy proceeds.  Directors are not eligible for this additional death benefit.

6.3    Scheduled Distributions. 
 
(a)Scheduled Distribution Election.  Participants shall be entitled to designate one or more Deferral Accounts as Scheduled Distribution Accounts in accordance with Section 3.5.  In the case of a Participant who has elected to receive a Scheduled Distribution, on the applicable Payment Date such Participant shall receive the Distributable Amount, with respect to the specified deferrals, including earnings thereon, which have been elected by the Participant to be subject to such Scheduled Distribution election in accordance with Section 3.5.  The Administrative Committee shall determine the earliest commencement date that may be elected by the Participant for each Scheduled Distribution Account and such date shall be indicated on the Participant Election.  The Participant may elect to receive the Scheduled Distribution Account in a single lump sum or substantially equal annual installments over a period of up to fifteen (15) years.  A Participant may delay payment and/or change the form of payment for a Scheduled Distribution Account, provided such revised election complies with the requirements of Section 3.5.  The Company Contribution Account shall not be distributable as a Scheduled Distribution, except where the Administrative Committee has authorized the filing of a Scheduled Distribution election for one or more Company Contributions in accordance with Section 3.5.  In the event the Administrative Committee authorizes the submission of Scheduled Distribution elections for one or more Company Contributions, the earliest commencement date for distribution of such Company Contributions shall not precede the date upon which the applicable Company Contribution shall be fully vested.  

(b)Small Benefit Exception.  Notwithstanding any distribution election to the contrary, if on commencement of a Scheduled Distribution Account the balance of such Scheduled Distribution Account is less than or equal to twenty-five thousand dollars ($25,000), the Scheduled Distribution Account shall be paid in the form of a single lump sum distribution on the applicable Payment Date. 
  

(c)Relationship to Other Benefits.
 
(1)In the event of a Participant’s death prior to complete distribution of one or more Scheduled Distribution Accounts, such Scheduled Distribution Account(s) (or the remaining portion thereof if installments have commenced) shall be distributed in accordance with Section 6.2.

(2)In the event a Participant has elected to receive a distribution upon a Change in Control Event in accordance with Section 6.5 below and a Change in Control Event occurs prior to complete distribution of one or more of such Participant’s Scheduled Distribution Accounts, such Scheduled Distribution Account(s) (or the remaining portion thereof if installments have commenced) shall be distributed in accordance with Section 6.5.

(3)The occurrence of a Participant’s Separation from Service prior to the selected date for a Scheduled Distribution shall have no impact on the timing or form of distribution of such Scheduled Distribution.

6.4    Hardship Distributions.
  
(a)Upon a finding that the Participant has suffered a Financial Hardship, in accordance with Code Section 409A, the Administrative Committee may, at the request of the Participant, accelerate distribution of benefits and/or approve cancellation of deferral elections under the Plan, subject to the following conditions:

(1)The request to take a Hardship Distribution shall be made by filing a form provided by and filed with the Administrative Committee.

(2)Upon a finding that the Participant has suffered a Financial Hardship in accordance with Treasury Regulations promulgated under Code Section 409A, the Administrative Committee may, at the request of the Participant, accelerate distribution of benefits and/or approve cancellation of current deferral elections under the Plan in the amount reasonably necessary to alleviate such Financial Hardship.  The amount distributed pursuant to this Section with respect to the Financial Hardship shall not exceed the amount necessary to satisfy such Financial Hardship, plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).

(3)The amount (if any) determined by the Administrative Committee as a Hardship Distribution shall be paid in a lump sum as soon as practicable after the end of the calendar month in which the Hardship Distribution determination is made by the Administrative Committee.

(b)In the event a Participant receives a hardship distribution under an Employer’s qualified 401(k) plan pursuant to Treas. Reg. §1.401(k)-1(d)(3), the Administrative Committee may (i) cancel the Participant’s current deferral elections under this Plan and/or (ii) preclude the Participant from submitting additional deferral elections pursuant to Article III, to the extent deemed necessary to comply with Treas. Reg. §1.401(k)-1(d)(3).

6.5    Change in Control Event Distribution.  A Participant may submit an election upon his or her commencement of participation in the Plan to receive a distribution upon the occurrence of a Change in Control Event.   If so elected, then upon the occurrence of a Change in Control Event the entire Distributable Amount credited to the Participant’s Deferral Accounts and Company Contribution Account (or remaining Distributable Amount if the Change in Control occurs following commencement of installment payments) shall be payable to the Participant in a lump sum within sixty (60) days following the Payment Date for the Change in Control Event distribution, without regard to the Participant’s elections pertaining to the Separation Account and Scheduled Distribution Accounts.  If no election is submitted, the Participant will be deemed to have elected to have his or her Accounts remain in the Plan and not be distributable upon a Change in Control Event.  If the Participant elects to receive a distribution upon the occurrence of a Change in Control Event, the Participant may also further elect upon commencement of participation in the Plan whether the Payment Date for such Change in Control Event distribution shall be (a) the first business day of the month following the month in which the Change in Control Event occurs, or (b) the first business day of the month that is fifteen (15) months following the month in which the Change in Control Event occurs; if no such election as to the Payment Date is submitted, the Payment Date shall be the first business day of the month following the month in which the Change in Control Event occurs. In accordance with the requirements under Section 3.5(b), a Participant may submit an election to delay the commencement of the benefit payable upon a Change in Control Event, or change the form of payment for the benefit payable upon a Change in Control to annual installments over a period of up to fifteen (15) years.
  
6.6.    Limited Cashouts.  Notwithstanding any provision in this Plan to the contrary, the Administrative Committee may, in its sole discretion, distribute in a mandatory lump sum any Participant’s entire Deferral Accounts and/or Company Contribution Account under the Plan, provided that any such distribution is made in accordance with the requirements of Treas. Reg. §1.409A-3(j)(4)(v) or its successor (each such payment, a “Limited Cashout”).  Specifically, any such Limited Cashout pursuant to this Section 6.6 shall be subject to the following requirements:

(a)The Administrative Committee’s exercise of discretion to make the Limited Cashout shall be evidenced in writing no later than the date of the lump sum payment;

(b)The lump sum payment shall result in the termination and liquidation of the entirety of the Participant's Deferral Accounts and/or Company Contribution Account under the Plan, as applicable, as well as the Participant’s interest in all other plans, agreements, methods, programs, or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under Treas. Reg. §1.409A-1(c)(2) with the Account(s) that is being distributed from this Plan; and

(c)    The lump sum payment (and the Participant’s entire interest in any and all other “plans” that would be aggregated with the Account(s) being distributed from this Plan in accordance with Treas. Reg. §1.409A-1(c)(2)) is not greater than the applicable dollar amount under Code Section 402(g)(1)(B) at the time of the Limited Cashout.

Any such Limited Cashout shall be calculated as of the last business day of the month in which the Administrative Committee’s determination to make the Limited Cashout occurs, and such lump sum payment shall be made within sixty (60) days following such determination.

ARTICLE VII
PAYEE DESIGNATIONS AND LIMITATIONS

7.1    Beneficiaries.
  
(a)Beneficiary Designation.  The Participant shall have the right, at any time, to designate any person or persons as Beneficiary (both primary and contingent) to whom payment under the Plan shall be made in the event of the Participant’s death.  If the Participant names someone other than his or her spouse as a Beneficiary, the Administrative Committee may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by the Administrative Committee, executed by such Participant's spouse and returned to such committee.  The Beneficiary designation shall be effective when it is submitted to and acknowledged by the Administrative Committee during the Participant’s lifetime in the format prescribed by such committee.  
 
(b)Absence of Valid Designation.  If a Participant fails to designate a Beneficiary as provided above, or if every person designated as Beneficiary predeceases the Participant or dies prior to complete distribution of the Participant’s benefits, then the Administrative Committee shall deem the Participant’s estate to be the Beneficiary and shall direct the distribution of such benefits to the Participant’s estate.

7.2    Payments to Minors.  In the event any amount is payable under the Plan to a minor, payment shall not be made to the minor, but instead such payment shall be made (a) to that person’s living parent(s) to act as custodian, or (b) if that person’s parents are then divorced, and one parent is the sole custodial parent, to such custodial parent, to act as custodian, or (c) if no parent of that person is then living, to a custodian selected by the Administrative  Committee to hold the funds for the minor under the Uniform Transfers or Gifts to Minors Act in effect in the jurisdiction in which the minor resides.  If no parent is living and the Administrative Committee decides not to select another custodian to hold the funds for the minor, then payment shall be made to the duly appointed and currently acting guardian of the estate for the minor or, if no guardian of the estate for the minor is duly appointed and currently acting within sixty (60) days after the date the amount becomes payable, payment shall be deposited with the court having jurisdiction over the estate of the minor.

7.3    Payments on Behalf of Persons Under Incapacity.  In the event that any amount becomes payable under the Plan to a person who, in the sole judgment of the Administrative Committee, is considered by reason of physical or mental condition to be unable to give a valid receipt therefore, the Administrative Committee may direct that such payment be made to any person found by such committee, in its sole judgment, to have assumed the care of such person.  Any payment made pursuant to such determination shall constitute a full release and discharge of any and all liability of the Administrative Committee and the Company under the Plan.

ARTICLE VIII
LEAVE OF ABSENCE

8.1    Paid Leave of Absence.  If a Participant is authorized by the Participant's Employer to take a paid leave of absence from the employment of the Employer, and such leave of absence does not constitute a Separation from Service, (a) the Participant shall continue to be considered eligible for the benefits provided under the Plan, and (b) deferrals shall continue to be withheld during such paid leave of absence in accordance with Article III.

8.2    Unpaid Leave of Absence.  If a Participant is authorized by the Participant's Employer to take an unpaid leave of absence from the employment of the Employer for any reason, and such leave of absence does not constitute a Separation from Service, such Participant shall continue to be eligible for the benefits provided under the Plan.  During the unpaid leave of absence, the Participant shall not be allowed to make any additional deferral elections.  However, if the Participant returns to employment, the Participant may elect to defer for the Plan Year following his or her return to employment and for every Plan Year thereafter while a Participant in the Plan, provided such deferral elections are otherwise allowed and a Participant Election is delivered to and accepted by the Administrative Committee for each such election in accordance with Article III above.

ARTICLE IX
ADMINISTRATION

9.1    Committees. The Plan shall be administered by the Administrative Committee and the Investment Committee, according to their respective duties as assigned throughout.  Both such committees are appointed by the Chief Executive Officer, and both  shall have the exclusive right and full discretion (a) to appoint agents to act on their  behalf, (b) in the case of the Investment Committee, to select and establish Funds, (c) to interpret the Plan, (d) to decide any and all matters arising hereunder (including the right to remedy possible ambiguities, inconsistencies, or admissions), (e) to make, amend and rescind such rules as it deems necessary for the proper administration of the Plan and (f) in the case of the Administrative Committee, to make all other determinations and resolve all questions of fact necessary or advisable for the administration of the Plan, including determinations regarding eligibility for benefits payable under the Plan.  All interpretations of either the Administrative Committee or the Investment Committee with respect to any matter hereunder shall be final, conclusive and binding on all persons affected thereby.  No member of either the Administrative Committee or the Investment Committee or any agent thereof shall be liable for any determination, decision, or action made in good faith with respect to the Plan.  The Company will indemnify and hold harmless the members of both the Administrative Committee and the Investment Committee and their agents from and against any and all liabilities, costs, and expenses incurred by such persons as a result of any act, or omission, in connection with the performance of such persons’ duties, responsibilities, and obligations under the Plan, other than such liabilities, costs, and expenses as may result from the bad faith, willful misconduct, or criminal acts of such persons.
 
9.2    Claims Procedure.  Any Participant, former Participant or Beneficiary may file a written claim with the Administrative Committee setting forth the nature of the benefit claimed, the amount thereof, and the basis for claiming entitlement to such benefit.  The Administrative Committee shall determine the validity of the claim and communicate a decision to the claimant promptly and, in any event, not later than ninety (90) days after the date of the claim.  The claim may be deemed by the claimant to have been denied for purposes of further review, as described below in Section 9.3, in the event a decision is not furnished to the claimant within such ninety (90) day period.  If additional information is necessary to make a determination on a claim, the claimant shall be advised of the need for such additional information within forty-five (45) days after the date of the claim.  The claimant shall have up to one hundred eighty (180) days to supplement the claim information, and the claimant shall be advised of the decision on the claim within forty-five (45) days after the earlier of the date the supplemental information is supplied or the end of the one hundred eighty (180) day period.  Every claim for benefits which is denied shall be denied by written notice setting forth in a manner calculated to be understood by the claimant (a) the specific reason or reasons for the denial, (b) specific reference 

to any provisions of the Plan (including any internal rules, guidelines, protocols, criteria, etc.) on which the denial is based, (c) description of any additional material or information that is necessary to process the claim, and (d) an explanation of the procedure for further reviewing the denial of the claim and shall include an explanation of the claimant’s right to submit the claim for binding arbitration in the event of an adverse determination on review.

9.3    Review Procedures.  Within sixty (60) days after the receipt of a denial on a claim, a claimant or his/her authorized representative may file a written request for review of such denial.  Such review shall be undertaken by the Administrative Committee and shall be a full and fair review. The claimant shall have the right to review all pertinent documents.  The Administrative Committee shall issue a decision not later than sixty (60) days after receipt of a request for review from a claimant unless special circumstances, such as the need to hold a hearing, require a longer period of time, in which case a decision shall be rendered as soon as possible but not later than one hundred twenty (120) days after receipt of the claimant’s request for review.  The decision on review shall be in writing and shall include specific reasons for the decision written in a manner calculated to be understood by the claimant with specific reference to any provisions of the Plan on which the decision is based and shall include an explanation of the claimant’s right to submit the claim for binding arbitration in the event of an adverse determination on review.

ARTICLE X
MISCELLANEOUS

10.1    Termination of Plan.  Although the Company anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that the Company will continue the Plan or will not terminate the Plan at any time in the future.  Accordingly, the Board reserves the right to terminate or suspend the Plan with respect to all or any of its Participants in its discretion at any time.  In the event of a Plan termination, no new deferral elections shall be permitted for the affected Participants and such Participants shall no longer be eligible to receive new Company Contributions.  However, after the Plan termination, the Account balances of such Participants shall continue to be credited with deferrals attributable to any deferral election that was in effect prior to the Plan termination to the extent deemed necessary to comply with Code Section 409A and related Treasury Regulations, and additional amounts shall continue to be credited or debited to such Participants’ Account balances pursuant to Article IV.   In addition, following a Plan termination, Participant Account balances shall remain in the Plan and shall not be distributed until such amounts become eligible for distribution in accordance with the other applicable provisions of the Plan.  Notwithstanding the preceding sentence, to the extent permitted by Treas. Reg. §1.409A-3(j)(4)(ix) or as otherwise permitted under Code Section 409A, the Employer may provide that upon termination of the Plan, all Account balances of the Participants shall be distributed, subject to and in accordance with any rules established by such Employer deemed necessary to comply with the applicable requirements and limitations of Code Section 409A.

10.2    Amendment. The Board may, at any time, amend or modify the Plan in whole or in part.  Notwithstanding the foregoing, the Administrative Committee may, at any time, adopt amendments or modifications to the Plan that are technical, ministerial or administrative in nature. Notwithstanding the foregoing, no amendment or modification shall be effective to decrease the value of a Participant’s vested Account balance in existence at the time the amendment or modification is made.

10.3    Unsecured General Creditor. The benefits paid under the Plan shall be paid from the general assets of the Company, and the Participant and any Beneficiary or their heirs or successors shall be no more than unsecured general creditors of the Company with no special or prior right to any assets of the Company for payment of any obligations hereunder. It is the intention of the Company that this Plan be unfunded for purposes of ERISA and the Code.

10.4    Restriction Against Assignment. The Company shall pay all amounts payable hereunder only to the person or persons designated by the Plan and not to any other person or entity.  No part of a Participant’s Accounts shall be liable for the debts, contracts, or engagements of any Participant, Beneficiary, or their successors in interest, nor shall a Participant’s Accounts be subject to execution by levy, attachment, or garnishment or by any other legal or equitable proceeding, nor shall any such person have any right to alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any benefits or payments hereunder in any manner whatsoever.  No part of a Participant’s Accounts shall be subject to any right of offset against or reduction for any amount payable by the Participant or Beneficiary, whether to the Company or any other party, under any arrangement other than under the terms of this Plan.
 
10.5    Withholding. The Participant shall make appropriate arrangements with the Company for satisfaction of any federal, state or local income tax withholding requirements, Social Security and other employee tax or other requirements applicable to the granting, crediting, vesting or payment of benefits under the Plan. There shall be deducted from each payment made under the Plan or any other Compensation payable to the Participant (or Beneficiary) all taxes that are required to be withheld by the Company in respect to such payment or this Plan.  To the extent permissible under Code Section 409A, the Company shall have the right to reduce any payment (or other Compensation) by the amount of cash sufficient to provide the amount of said taxes. 
 
10.6    Code Section 409A. The Company intends that the Plan comply with the requirements of Code Section 409A (and all applicable Treasury Regulations and other guidance issued thereunder) and shall be operated and interpreted consistent with that intent. Notwithstanding the foregoing, the Company makes no representation that the Plan complies with Code Section 409A.  

10.7    Effect of Payment.  Any payment made in good faith to a Participant or the Participant’s Beneficiary shall, to the extent thereof, be in full satisfaction of all claims against the Investment Committee and the Administrative Committee, their members, the Employer and the Company.  
 
10.8    Errors in Account Statements, Deferrals or Distributions.  In the event an error is made in an Account statement, such error shall be corrected on the next statement following the date such error is discovered.  In the event of an operational error, including, but not limited to, errors involving deferral amounts, overpayments or underpayments, such operational error shall be corrected in a manner consistent with and as permitted by any correction procedures established under Code Section 409A.  If any portion of a Participant’s Account(s) under this Plan is required to be included in income by the Participant prior to receipt due to a failure of this Plan to comply with the requirements of Code Section 409A, the Administrative Committee may determine that such Participant shall receive a distribution from the Plan in an amount equal to the lesser of (i) the portion of his or her Account required to be included in income as a result of the failure of the Plan to comply with the requirements of Code Section 409A, or (ii) the unpaid vested Account balance.

10.9    No Creditor Claims or Assignments.  Except as may be expressly required by law, no interest of a Participant or of any person hereunder shall be subject to any claim of any creditor, and in 

particular shall not be subject to attachment or garnishment or legal process by any creditor (including, but not limited to, domestic relations orders), nor shall such person have any right to alienate, anticipate, sell, transfer, pledge, encumber or assign any of the amounts which he or she may expect to receive under the Plan.  

10.10    Plan Administrative Expenses.  In order to defray the administrative costs of maintaining the Plan, the Company reserves the right and discretion to charge each Participant a reasonable annual administrative fee.  The amount of the administrative fee shall be determined by the Administrative Committee, and may be increased or decreased from time to time as determined by the Administrative Committee, in its sole discretion.  Any such administrative fee may be assessed annually, or pro-rated and charged more frequently at such other reasonable times as determined by the Administrative Committee.  Such administrative fee may be assessed by reduction of Participant Accounts.  The administrative fee shall be allocated among the Participants on a pro-rata basis, per capita basis, or in such other reasonable manner as may be determined by the Administrative Committee, in its sole discretion. 

10.11    Employment Not Guaranteed.  Nothing contained in the Plan nor any action taken hereunder shall be construed as a contract of employment or as giving any Participant any right to continue the provision of services in any capacity whatsoever to the Employer.

10.12    No Guarantee of Tax Consequences.  The Employer, Company, Board and the Investment Committee and the Administrative Committee make no commitment or guarantee to any Participant that any federal, state or local tax treatment will apply or be available to any person eligible for benefits under the Plan and assume no liability whatsoever for the tax consequences to any Participant.

10.13    Successors of the Company.  The rights and obligations of the Company under the Plan shall inure to the benefit of, and shall be binding upon, the successors and assigns of the Company.

10.14    Notice.  Any notice or filing required or permitted to be given to the Company or the Participant under this Agreement shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, in the case of the Company, to the principal office of the Company, directed to the attention of the “AdvanSix Inc. Retirement Plans Administrative Committee”, and in the case of the Participant, to the last known address of the Participant indicated on the employment records of the Company.  Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.  Notices to the Company may be permitted by electronic communication according to specifications established by the Administrative Committee.

10.15    Headings.  Headings and subheadings in this Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof.

10.16    Gender, Singular and Plural.  All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require.  As the context may require, the singular may be read as the plural and the plural as the singular. 

10.17    Governing Law.  The Plan is intended to be an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of “management or highly compensated employees” within the meaning of Sections 201, 301 and 401 of ERISA and therefore to be exempt from Parts 2, 3 and 4 of Title I of ERISA.  To the extent any provision of, or legal issue relating to, 

this Plan is not fully preempted by federal law, such issue or provision shall be governed by the laws of the State of Delaware.  

10.18    Entire Agreement.  Unless specifically indicated otherwise, this Plan supersedes any and all prior communications, understandings, arrangements or agreements between the parties, including the Employer, the Company, the Board, the Administrative Committee and the Investment Committee and any and all Participants, whether written, oral, express or implied relating thereto.

10.19    Binding Arbitration.  Any claim, dispute or other matter in question of any kind relating to this Plan which is not resolved by the claims procedures under this Plan shall be settled by arbitration in accordance with the applicable employment dispute resolution rules of the American Arbitration Association.  Notice of demand for arbitration shall be made in writing to the opposing party and to the American Arbitration Association within a reasonable time after the claim, dispute or other matter in question has arisen.  In no event shall a demand for arbitration be made after the date when the applicable statute of limitations would bar the institution of a legal or equitable proceeding based on such claim, dispute or other matter in question.  The decision of the arbitrators shall be final and may be enforced in any court of competent jurisdiction.  The arbitrators may award reasonable fees and expenses to the prevailing party in any dispute hereunder and shall award reasonable fees and expenses in the event that the arbitrators find that the losing party acted in bad faith or with intent to harass, hinder or delay the prevailing party in the exercise of its rights in connection with the matter under dispute.
    
IN WITNESS WHEREOF, the Board of Directors of the Company has approved the adoption of this Plan as of the Effective Date and has caused the Plan to be executed by its duly authorized representative this 21st day of September, 2017.

ADVANSIX INC.

By: /s/ John M. Quitmeyer
Name: John M. Quitmeyer
Title: Senior Vice President, General Counsel
and Corporate SecretaryExhibit 10.1

 

AMENDED AND RESTATED

CYTOSORBENTS CORPORATION

2014 LONG-TERM INCENTIVE PLAN

 

 

  TABLE
OF CONTENTS

 

	 	 	 	Page	 
	1.History; Effective Date.	 	 	1	 
	2.Purposes of the Plan.	 	 	1	 
	3.Terminology.	 	 	1	 
	4.Administration.	 	 	1	 
	(a)Administration of the Plan	 	 	1	 
	(b)Powers of the Administrator	 	 	1	 
	(c)Delegation of Administrative Authority	 	 	2	 
	(d)Non-Uniform Determinations	 	 	2	 
	(e)Limited Liability; Advisors	 	 	3	 
	(f)Indemnification	 	 	3	 
	(g)Effect of Administrator’s Decision	 	 	3	 
	5.Shares Issuable Pursuant to Awards.	 	 	3	 
	(a)Initial Share Pool	 	 	3	 
	(b)Adjustments to Share Pool	 	 	3	 
	(c)Code Section 162(m) Individual Limits	 	 	4	 
	(d)ISO Limit	 	 	4	 
	(e)Source of Shares	 	 	4	 
	6.Participation.	 	 	4	 
	7.Awards.	 	 	4	 
	(a)Awards, In General	 	 	4	 
	(b)Stock Options	 	 	5	 
	(c)Limitation on Reload Options	 	 	5	 
	(d)Stock Appreciation Rights	 	 	5	 
	(e)Repricing	 	 	6	 
	(f)Stock Awards	 	 	6	 
	(g)Stock Units	 	 	7	 
	(h)Performance Shares and Performance Units	 	 	8	 
	(i)Other Stock-Based Awards	 	 	8	 
	(j)Qualified Performance-Based Awards	 	 	9	 
	(k)Awards to Participants Outside the United States	 	 	10	 
	(l)Limitation on Dividend Reinvestment and Dividend Equivalents	 	 	10	 
	8.Withholding of Taxes.	 	 	10	 
	9.Transferability of Awards.	 	 	11	 
	10.Adjustments for Corporate Transactions and Other Events.	 	 	11	 
	(a)Mandatory Adjustments	 	 	11	 
	(b)Discretionary Adjustments	 	 	11	 
	(c)Adjustments to Performance Goals	 	 	11 	 

 

    	 	i	 

     

    

 

	(d)Statutory Requirements Affecting Adjustments	 	 	12	 
	(e)Dissolution or Liquidation	 	 	12	 
	11.Change in Control Provisions.	 	 	12	 
	(a)Termination of Awards	 	 	12	 
	(b)Other Permitted Actions	 	 	13	 
	(c)Section 409A Savings Clause	 	 	13	 
	12.Substitution of Awards in Mergers and Acquisitions.	 	 	13	 
	13.Compliance with Securities Laws; Listing and Registration.	 	 	13	 
	14.Section 409A Compliance.	 	 	14	 
	15.Plan Duration; Amendment and Discontinuance.	 	 	15	 
	(a)Plan Duration	 	 	15	 
	(b)Amendment and Discontinuance of the Plan	 	 	15	 
	(c)Amendment of Awards	 	 	15	 
	16.General Provisions.	 	 	15	 
	(a)Non-Guarantee of Employment or Service	 	 	15	 
	(b)No Trust or Fund Created	 	 	16	 
	(c)Status of Awards	 	 	16	 
	(d)Subsidiary Employees	 	 	16	 
	(e)Governing Law and Interpretation	 	 	16	 
	(f)Use of English Language	 	 	16	 
	(g)Recovery of Amounts Paid	 	 	16	 
	17.Glossary.	 	 	16	 

 

 

    	 	ii	 

     

    

 

1. History; Effective Date.

 

CYTOSORBENTS CORPORATION, a Delaware corporation,
or successor in interest (“CytoSorbents”), has established the AMENDED AND RESTATED CYTOSORBENTS CORPORATION
2014 LONG-TERM INCENTIVE PLAN, as set forth herein, and as the same may be amended from time to time (the “Plan”).
The Plan was adopted by the Board of Directors of CytoSorbents (the “Board”) on April 12, 2017. The Plan shall
become and is effective as of the date that it is approved by the stockholders of Client (the “Effective Date”). The
Plan is a continution and amendment and restatement of the CytoSorbents Corporation 2014 Long-Term Incentive Plan (the “2014
Plan”).

 

2. Purposes of the Plan.

 

The Plan is designed to:

 

(a) promote the long-term financial interests
and growth of CytoSorbents and its Subsidiaries (together, the “Company”) by attracting and retaining management
and other personnel and key service providers with the training, experience and ability to enable them to make a substantial contribution
to the success of the Company’s business;

 

(b) motivate management personnel by means
of growth-related incentives to achieve long-range goals; and

 

(c) further the alignment of interests of
Participants with those of the stockholders of CytoSorbents through opportunities for increased stock or stock-based ownership
in CytoSorbents.

 

Toward these objectives, the Administrator
may grant stock options, stock appreciation rights, stock awards, stock units, performance shares, performance units, and other
stock-based awards to eligible individuals on the terms and subject to the conditions set forth in the Plan.

 

3. Terminology.

 

Except as otherwise specifically provided
in an Award Agreement, capitalized words and phrases used in the Plan or an Award Agreement shall have the meaning set forth in
the glossary at Section 17 of the Plan or as defined the first place such word or phrase appears in the Plan.

 

4. Administration.

 

(a) Administration of the Plan.  The
Plan shall be administered by the Administrator.

 

(b) Powers of the Administrator.  The
Administrator shall, except as otherwise provided under the Plan, have plenary authority, in its sole and absolute discretion,
to grant Awards pursuant to the terms of the Plan to Eligible Individuals and to take all other actions necessary or desirable
to carry out the purpose and intent of the Plan. Among other things, the Administrator shall have the authority, in its sole and
absolute discretion, subject to the terms and conditions of the Plan to:

 

(i) determine the Eligible Individuals to
whom, and the time or times at which, Awards shall be granted;

 

(ii) determine the types of Awards to be
granted any Eligible Individual;

 

(iii) determine the number of shares of Common
Stock to be covered by or used for reference purposes for each Award or the value to be transferred pursuant to any Award;

 

(iv) determine the terms, conditions and
restrictions applicable to each Award (which need not be identical) and any shares acquired pursuant thereto, including, without
limitation, (A) the purchase price of any shares of Common Stock, (B) the method of payment for shares purchased pursuant to any
Award, (C) the method for satisfying any tax withholding obligation arising in connection with any Award, including by the withholding
or delivery of shares of Common Stock, (D) the timing, terms and conditions of the exercisability, vesting or payout of any Award
or any shares acquired pursuant thereto, (E) the Performance Goals applicable to any Award and the extent to which such Performance
Goals have been attained, (F) the time of the expiration of any Award, (G) the effect of the Participant’s Termination of
Service on any of the foregoing, and (H) all other terms, conditions and restrictions applicable to any Award or shares acquired
pursuant thereto as the Administrator shall consider to be appropriate and not inconsistent with the terms of the Plan;

 

    	 	1	 

     

    

 

(v) subject to Sections 7(e), 7(j), 10(c)
and 15, modify, amend or adjust the terms and conditions of any Award;

 

(vi) accelerate or otherwise change the time
at or during which an Award may be exercised or becomes payable and waive or accelerate the lapse, in whole or in part, of any
restriction, condition or risk of forfeiture with respect to such Award; provided, however, that, except in connection
with death, disability or a Change in Control, no such change, waiver or acceleration shall be made with respect to a Qualified
Performance-Based Award if the effect of such action would cause the Award to fail to qualify for the Section 162(m) Exemption
or shall be made to any Award that is considered “deferred compensation” within the meaning of Section 409A of the
Code if the effect of such action is inconsistent with Section 409A of the Code;

 

(vii) determine whether an Award will be
paid or settled in cash, shares of Common Stock, or in any combination thereof and whether, to what extent and under what circumstances
cash or shares of Common Stock payable with respect to an Award shall be deferred either automatically or at the election of the
Participant;

 

(viii) for any purpose, including but not
limited to, qualifying for preferred or beneficial tax treatment, accommodating the customs or administrative challenges or otherwise
complying with the tax, accounting or regulatory requirements of one or more jurisdictions, adopt, amend, modify, administer or
terminate sub-plans, appendices, special provisions or supplements applicable to Awards regulated by the laws of a particular jurisdiction,
which sub-plans, appendices, supplements and special provisions may take precedence over other provisions of the Plan, and prescribe,
amend and rescind rules and regulations relating to such sub-plans, supplements and special provisions;

 

(ix) establish any “blackout”
period, during which transactions affecting Awards may not be effectuated, that the Administrator in its sole discretion deems
necessary or advisable;

 

(x) determine the Fair Market Value of shares
of Common Stock or other property for any purpose under the Plan or any Award;

 

(xi) administer, construe and interpret the
Plan, Award Agreements and all other documents relevant to the Plan and Awards issued thereunder, and decide all other matters
to be determined in connection with an Award;

 

(xii) establish, amend, rescind and interpret
such administrative rules, regulations, agreements, guidelines, instruments and practices for the administration of the Plan and
for the conduct of its business as the Administrator deems necessary or advisable;

 

(xiii) correct any defect, supply any omission
or reconcile any inconsistency in the Plan or in any Award or Award Agreement in the manner and to the extent the Administrator
shall consider it desirable to carry it into effect; and

 

(xiv) otherwise administer the Plan and all
Awards granted under the Plan.

 

(c) Delegation of Administrative Authority.  The
Administrator may designate officers or employees of the Company to assist the Administrator in the administration of the Plan
and, to the extent permitted by applicable law and stock exchange rules, the Administrator may delegate to officers or other employees
of the Company the Administrator’s duties and powers under the Plan, subject to such conditions and limitations as the Administrator
shall prescribe, including without limitation the authority to execute agreements or other documents on behalf of the Administrator;
provided, however, that such delegation of authority shall not extend to the granting of, or exercise of discretion with respect
to, Awards to Eligible Individuals who are “covered employees” within the meaning of Section 162(m) of the Code or
officers under Section 16 of the Exchange Act.

 

(d) Non-Uniform Determinations.  The
Administrator’s determinations under the Plan (including without limitation, determinations of the persons to receive Awards,
the form, amount and timing of such Awards, the terms and provisions of such Awards and the Award Agreements evidencing such Awards,
and the ramifications of a Change in Control upon outstanding Awards) need not be uniform and may be made by the Administrator
selectively among Awards or persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons
are similarly situated.

 

    	 	2	 

     

    

 

(e) Limited Liability; Advisors.  To
the maximum extent permitted by law, no member of the Administrator shall be liable for any action taken or decision made in good
faith relating to the Plan or any Award thereunder. The Administrator may employ counsel, consultants, accountants, appraisers,
brokers or other persons. The Administrator, CytoSorbents, and the officers and directors of CytoSorbents shall be entitled to
rely upon the advice, opinions or valuations of any such persons.

 

(f) Indemnification.  To
the maximum extent permitted by law, by CytoSorbents’s charter and by-laws, and by any directors’ and officers’
liability insurance coverage which may be in effect from time to time, the members of the Administrator and any agent or delegate
of the Administrator who is a director, officer or employee of CytoSorbents or an Affiliate shall be indemnified by CytoSorbents
against any and all liabilities and expenses to which they may be subjected by reason of any act or failure to act with respect
to their duties on behalf of the Plan.

 

(g) Effect of Administrator’s Decision.  All
actions taken and determinations made by the Administrator on all matters relating to the Plan or any Award pursuant to the powers
vested in it hereunder shall be in the Administrator’s sole and absolute discretion, unless in contravention of any express
term of the Plan, including, without limitation, any determination involving the appropriateness or equitableness of any action.
All determinations made by the Administrator shall be conclusive, final and binding on all parties concerned, including CytoSorbents,
its stockholders, any Participants and any other employee, consultant, or director of CytoSorbents and its Affiliates, and their
respective successors in interest. No member of the Administrator, nor any director, officer, employee or representative of CytoSorbents
shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or Awards.

 

5. Shares Issuable Pursuant to Awards.

 

(a) Share Pool.  The number
of shares of Common Stock issuable pursuant to Awards that may be granted under the Plan (the “Share Pool”)
shall be equal to an aggregate 7,400,000 shares which represents (i) 2,400,000 shares approved by stockholders under the 2014 Plan
plus (ii) an additional 5,000,000 shares approved by the stockholders as of the Effective Date.

 

(b) Adjustments to Share Pool.  The
Share Pool shall be adjusted, in addition to any adjustments to be made pursuant to Section 10 of the Plan, as follows:

 

(i) The Share Pool shall be reduced, on the
date of grant, by one share for each share of Common Stock made subject to an Award granted under the Plan;

 

(ii) The Share Pool shall be increased, on
the relevant date, by the number of unissued shares of Common Stock underlying or used as a reference measure for any Award or
portion of an Award that is cancelled, forfeited, expired, terminated unearned or settled in cash, in any such case without the
issuance of shares, and by the number of shares of Common Stock used as a reference measure for any Award that are not issued upon
settlement of such Award either due to a net settlement or otherwise;

 

(iii) The Share Pool shall be increased,
on the forfeiture date, by the number of shares of Common Stock that are forfeited back to CytoSorbents after issuance due to a
failure to meet an Award contingency or condition with respect to any Award or portion of an Award;

 

(iv) The Share Pool shall be increased, on
the exercise date, by the number of shares of Common Stock withheld by or surrendered (either actually or through attestation)
to CytoSorbents in payment of the exercise price of any Award; and

 

(v) The Share Pool shall be increased, on
the relevant date, by the number of shares of Common Stock withheld by or surrendered (either actually or through attestation)
to CytoSorbents in payment of the statutory minimum Tax Withholding Obligation that arises in connection with any Award.

 

    	 	3	 

     

    

 

(c) Code Section 162(m) Individual Limits.  Subject
to adjustment as provided in Section 10 of the Plan:

 

(i) the maximum number of shares of Common
Stock that may be made subject to Awards granted under the Plan during a calendar year to any one person in the form of stock options
or stock appreciation rights is, in the aggregate, 500,000 shares;

 

(ii) the maximum number of shares of Common
Stock that may be made subject to Awards granted under the Plan during a calendar year to any one person in the form of Performance
Awards is, in the aggregate, 250,000 shares,

 

(iii) in connection with Awards granted under
the Plan during a calendar year to any one person in the form of Performance Shares, the maximum cash amount payable thereunder
is the amount equal to the number of shares made subject to the Award, as limited by Section 5(c)(ii), multiplied by the Fair Market
Value as determined as of the payment date; and

 

(iv) in connection with Awards granted under
the Plan during a calendar year to any one person in the form of Performance Units, the maximum cash amount payable under such
Performance Units is $500,000;

 

provided, however, that each of the limitations set forth
above in clauses (i), (ii) and (iii) of this Section 5(c) shall be multiplied by two when applied to Awards granted to any individual
during the calendar year in which such individual first commences service with CytoSorbents or a Subsidiary; and provided, further,
that the limitations set forth above in clauses (ii) and (iii) of this Section 5(c) shall be multiplied by the number of calendar
years over which the applicable Performance Period spans (in whole or in part), if the Performance Period is longer than 12 months’
duration, when applied to Performance Awards. If an Award is terminated, surrendered or canceled in the same year in which it was
granted, such Award nevertheless will continue to be counted against the limitations set forth above in this Section 5(c) for the
calendar year in which it was granted.

 

(d) ISO Limit.  Subject
to adjustment pursuant to Section 10 of the Plan, the maximum number of shares of Common Stock that may be issued pursuant to stock
options granted under the Plan that are intended to qualify as Incentive Stock Options within the meaning of Section 422 of the
Code shall be equal to the number of shares in the Share Pool.

 

(e) Source of Shares.  The
shares of Common Stock with respect to which Awards may be made under the Plan shall be shares authorized for issuance under CytoSorbents’s
charter but unissued, or issued and reacquired, including without limitation shares purchased in the open market or in private
transactions.

 

6. Participation.

 

Participation in the Plan shall be open to
all Eligible Individuals, as may be selected by the Administrator from time to time. The Administrator may also grant Awards to
Eligible Individuals in connection with hiring, recruiting or otherwise, prior to the date the individual first performs services
for CytoSorbents or a Subsidiary; provided, however, that such Awards shall not become vested or exercisable, and
no shares shall be issued to such individual, prior to the date the individual first commences performance of such services.

 

7. Awards.

 

(a) Awards, In General.  The
Administrator, in its sole discretion, shall establish the terms of all Awards granted under the Plan consistent with the terms
of the Plan. Awards may be granted individually or in tandem with other types of Awards, concurrently with or with respect to outstanding
Awards. All Awards are subject to the terms and conditions provided in the Award Agreement, which shall be delivered to the Participant
receiving such Award upon, or as promptly as is reasonably practicable following, the grant of such Award. Unless otherwise specified
by the Administrator, in its sole discretion, or otherwise provided in the Award Agreement, an Award shall not be effective unless
the Award Agreement is signed or otherwise accepted by CytoSorbents and the Participant receiving the Award (including by electronic
delivery and/or electronic signature).

 

    	 	4	 

     

    

 

(b) Stock Options.

 

(i) Grants.  A stock option
means a right to purchase a specified number of shares of Common Stock from CytoSorbents at a specified price during a specified
period of time. The Administrator may from time to time grant to Eligible Individuals Awards of Incentive Stock Options or Nonqualified
Options; provided, however, that Awards of Incentive Stock Options shall be limited to employees of CytoSorbents
or of any current or hereafter existing “parent corporation” or “subsidiary corporation,” as defined in
Sections 424(e) and 424(f) of the Code, respectively, of CytoSorbents, and any other Eligible Individuals who are eligible to receive
Incentive Stock Options under the provisions of Section 422 of the Code. No stock option shall be an Incentive Stock Option unless
so designated by the Administrator at the time of grant or in the applicable Award Agreement.

 

(ii) Exercise.  Stock options
shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator;
provided, however, that Awards of stock options may not have a term in excess of ten years’ duration unless required
otherwise by applicable law. The exercise price per share subject to a stock option granted under the Plan shall not be less than
the Fair Market Value of one share of Common Stock on the date of grant of the stock option, except as provided under applicable
law or with respect to stock options that are granted in substitution of similar types of awards of a company acquired by CytoSorbents
or a Subsidiary or with which CytoSorbents or a Subsidiary combines (whether in connection with a corporate transaction, such as
a merger, combination, consolidation or acquisition of property or stock, or otherwise) to preserve the intrinsic value of such
awards.

 

(iii) Termination of Service.  Except
as provided in the applicable Award Agreement or otherwise determined by the Administrator, to the extent stock options are not
vested and exercisable, a Participant’s stock options shall be forfeited upon his or her Termination of Service.

 

(iv) Additional Terms and Conditions.  The
Administrator may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions, and/or limitations,
if any, of any Award of stock options, provided they are not inconsistent with the Plan.

 

(c) Limitation on Reload Options.  The
Administrator shall not grant stock options under this Plan that contain a reload or replenishment feature pursuant to which a
new stock option would be granted automatically upon receipt of delivery of Common Stock to CytoSorbents in payment of the exercise
price or any tax withholding obligation under any other stock option.

 

(d) Stock Appreciation Rights.

 

(i) Grants.  The Administrator
may from time to time grant to Eligible Individuals Awards of stock appreciation rights. A stock appreciation right entitles the
Participant to receive, subject to the provisions of the Plan and the Award Agreement, a payment having an aggregate value equal
to the product of (i) the excess of (A) the Fair Market Value on the exercise date of one share of Common Stock over (B) the base
price per share specified in the Award Agreement, times (ii) the number of shares specified by the stock appreciation right, or
portion thereof, which is exercised. The base price per share specified in the Award Agreement shall not be less than the lower
of the Fair Market Value on the date of grant or the exercise price of any tandem stock option to which the stock appreciation
right is related, or with respect to stock appreciation rights that are granted in substitution of similar types of awards of a
company acquired by CytoSorbents or a Subsidiary or with which CytoSorbents or a Subsidiary combines (whether in connection with
a corporate transaction, such as a merger, combination, consolidation or acquisition of property or stock, or otherwise) such base
price as is necessary to preserve the intrinsic value of such awards.

 

(ii) Exercise.  Stock appreciation
rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator;
provided, however, that stock appreciation rights granted under the Plan may not have a term in excess of ten years’
duration unless required otherwise by applicable law. The applicable Award Agreement shall specify whether payment by CytoSorbents
of the amount receivable upon any exercise of a stock appreciation right is to be made in cash or shares of Common Stock or a
combination of both, or shall reserve to the Administrator or the Participant the right to make that determination prior to or
upon the exercise of the stock appreciation right. If upon the exercise of a stock appreciation right a Participant is to receive
a portion of such payment in shares of Common Stock, the number of shares shall be determined by dividing such portion by the
Fair Market Value of a share of Common Stock on the exercise date. No fractional shares shall be used for such payment and the
Administrator shall determine whether cash shall be given in lieu of such fractional shares or whether such fractional shares
shall be eliminated.

 

    	 	5	 

     

    

 

(iii) Termination of Service.  Except
as provided in the applicable Award Agreement or otherwise determined by the Administrator, to the extent stock appreciation rights
are not vested and exercisable, a Participant’s stock appreciation rights shall be forfeited upon his or her Termination
of Service.

 

(iv) Additional Terms and Conditions.  The
Administrator may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions, and/or limitations,
if any, of any Award of stock appreciation rights, provided they are not inconsistent with the Plan.

 

(e) Repricing.  Notwithstanding
anything herein to the contrary, except in connection with a corporate transaction involving CytoSorbents (including, without limitation,
any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up,
spin-off, combination, or exchange of shares), the terms of options and stock appreciation rights granted under the Plan may not
be amended, after the date of grant, to reduce the exercise price of such options or stock appreciation rights, nor may outstanding
options or stock appreciation rights be canceled in exchange for (i) cash, (ii) options or stock appreciation rights with an exercise
price or base price that is less than the exercise price or base price of the original outstanding options or stock appreciation
rights, or (iii) other Awards, unless such action is approved by CytoSorbents’s stockholders.

 

(f) Stock Awards.

 

(i) Grants.  The Administrator
may from time to time grant to Eligible Individuals Awards of unrestricted Common Stock or Restricted Stock (collectively, “Stock
Awards”) on such terms and conditions, and for such consideration, including no consideration or such minimum consideration
as may be required by law, as the Administrator shall determine. Stock Awards shall be evidenced in such manner as the Administrator
may deem appropriate, including via book-entry registration.

 

(ii) Vesting.  Restricted
Stock shall be subject to such vesting, restrictions on transferability and other restrictions, if any, and/or risk of forfeiture
as the Administrator may impose at the date of grant or thereafter. The Restriction Period to which such vesting, restrictions
and/or risk of forfeiture apply may lapse under such circumstances, including without limitation upon the attainment of Performance
Goals, in such installments, or otherwise, as the Administrator may determine. In the event that the Administrator conditions the
grant or vesting of a Stock Award upon the attainment of Performance Goals, or the attainment of Performance Goals together with
the continued service of the Participant, the Administrator may, prior to or at the time of grant, designate the Stock Award as
a Qualified Performance-Based Award. Subject to the provisions of the Plan and the applicable Award Agreement, during the Restriction
Period, the Participant shall not be permitted to sell, assign, transfer, pledge or otherwise encumber shares of Restricted Stock.

 

(iii) Rights of a Stockholder; Dividends.  Except
to the extent restricted under the Award Agreement relating to the Restricted Stock, a Participant granted Restricted Stock shall
have all of the rights of a stockholder of Common Stock including, without limitation, the right to vote Restricted Stock. Cash
dividends declared payable on Common Stock shall be paid, with respect to outstanding Restricted Stock, either as soon as practicable
following the dividend payment date or deferred for payment to such later date as determined by the Administrator, and shall be
paid in cash or as unrestricted shares of Common Stock having a Fair Market Value equal to the amount of such dividends or may
be reinvested in additional shares of Restricted Stock as determined by the Administrator; provided, however, that
dividends declared payable on Restricted Stock that is granted as a Performance Award shall be held by CytoSorbents and made subject
to forfeiture at least until achievement of the applicable Performance Goal related to such shares of Restricted Stock. Stock
distributed in connection with a stock split or stock dividend, and other property distributed as a dividend, shall be subject
to restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such Common Stock or
other property has been distributed. As soon as is practicable following the date on which restrictions on any shares of Restricted
Stock lapse, CytoSorbents shall deliver to the Participant the certificates for such shares or shall cause the shares to be registered
in the Participant’s name in book-entry form, in either case with the restrictions removed, provided that the Participant
shall have complied with all conditions for delivery of such shares contained in the Award Agreement or otherwise reasonably required
by CytoSorbents.

 

    	 	6	 

     

    

 

(iv) Termination of Service.  Except
as provided in the applicable Award Agreement, upon Termination of Service during the applicable Restriction Period, Restricted
Stock and any accrued but unpaid dividends that are at that time subject to restrictions shall be forfeited; provided that
the Administrator may provide, by rule or regulation or in any Award Agreement, or may determine in any individual case, that restrictions
or forfeiture conditions relating to Restricted Stock will be waived in whole or in part in the event of terminations resulting
from specified causes, and the Administrator may in other cases waive in whole or in part the forfeiture of Restricted Stock.

 

(v) Additional Terms and Conditions.  The
Administrator may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions, and/or limitations,
if any, of any Award of Restricted Stock, provided they are not inconsistent with the Plan.

 

(g) Stock Units.

 

(i) Grants.  The Administrator
may from time to time grant to Eligible Individuals Awards of unrestricted stock Units or Restricted Stock Units on such terms
and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law,
as the Administrator shall determine. Restricted Stock Units represent a contractual obligation by CytoSorbents to deliver a number
of shares of Common Stock, an amount in cash equal to the Fair Market Value of the specified number of shares subject to the Award,
or a combination of shares of Common Stock and cash, in accordance with the terms and conditions set forth in the Plan and any
applicable Award Agreement.

 

(ii) Vesting and Payment.  Restricted
Stock Units shall be subject to such vesting, risk of forfeiture and/or payment provisions as the Administrator may impose at the
date of grant. The Restriction Period to which such vesting and/or risk of forfeiture apply may lapse under such circumstances,
including without limitation upon the attainment of Performance Goals, in such installments, or otherwise, as the Administrator
may determine. In the event that the Administrator conditions the vesting and/or lapse of risk of forfeiture of Restricted Stock
Units upon the attainment of Performance Goals, or the attainment of Performance Goals together with the continued service of the
Participant, the Administrator may, prior to or at the time of grant, designate the Award of Restricted Stock Units as a Qualified
Performance-Based Award. Shares of Common Stock, cash or a combination of shares of Common Stock and cash, as applicable, payable
in settlement of Restricted Stock Units shall be delivered to the Participant as soon as administratively practicable, but no later
than 30 days, after the date on which payment is due under the terms of the Award Agreement provided that the Participant
shall have complied with all conditions for delivery of such shares or payment contained in the Award Agreement or otherwise reasonably
required by CytoSorbents, or in accordance with an election of the Participant, if the Administrator so permits, that meets the
requirements of Section 409A of the Code.

 

(iii) No Rights of a Stockholder; Dividend
Equivalents.  Until shares of Common Stock are issued to the Participant in settlement of stock Units, the Participant
shall not have any rights of a stockholder of CytoSorbents with respect to the stock Units or the shares issuable thereunder. The
Administrator may grant to the Participant the right to receive Dividend Equivalents on stock Units, on a current, reinvested and/or
restricted basis, subject to such terms as the Administrator may determine provided, however, that Dividend Equivalents
payable on stock Units that are granted as a Performance Award shall, rather than be paid on a current basis, be accrued and made
subject to forfeiture at least until achievement of the applicable Performance Goal related to such stock Units.

 

    	 	7	 

     

    

 

(iv) Termination of Service.  Upon
Termination of Service during the applicable deferral period or portion thereof to which forfeiture conditions apply, or upon failure
to satisfy any other conditions precedent to the delivery of shares of Common Stock or cash to which such Restricted Stock Units
relate, all Restricted Stock Units and any accrued but unpaid Dividend Equivalents with respect to such Restricted Stock Units
that are then subject to deferral or restriction shall be forfeited; provided that the Administrator may provide, by rule
or regulation or in any Award Agreement, or may determine in any individual case, that restrictions or forfeiture conditions relating
to Restricted Stock Units will be waived in whole or in part in the event of termination resulting from specified causes, and the
Administrator may in other cases waive in whole or in part the forfeiture of Restricted Stock Units.

 

(v) Additional Terms and Conditions.  The
Administrator may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions, and/or limitations,
if any, of any Award of stock Units, provided they are not inconsistent with the Plan.

 

(h) Performance Shares and Performance
Units.

 

(i) Grants.  The Administrator
may from time to time grant to Eligible Individuals Awards in the form of Performance Shares and Performance Units. Performance
Shares, as that term is used in this Plan, shall refer to shares of Common Stock or Units that are expressed in terms of Common
Stock, the issuance, vesting, lapse of restrictions on or payment of which is contingent on performance as measured against predetermined
objectives over a specified Performance Period. Performance Units, as that term is used in this Plan, shall refer to dollar-denominated
Units valued by reference to designated criteria established by the Administrator, other than Common Stock, the issuance, vesting,
lapse of restrictions on or payment of which is contingent on performance as measured against predetermined objectives over a specified
Performance Period. The applicable Award Agreement shall specify whether Performance Shares and Performance Units will be settled
or paid in cash or shares of Common Stock or a combination of both, or shall reserve to the Administrator or the Participant the
right to make that determination prior to or at the payment or settlement date.

 

(ii) Performance Criteria.  The
Administrator shall, prior to or at the time of grant, condition the grant, vesting or payment of, or lapse of restrictions on,
an Award of Performance Shares or Performance Units upon (A) the attainment of Performance Goals during a Performance Period or
(B) the attainment of Performance Goals and the continued service of the Participant. The Administrator may, prior to or at the
time of grant, designate an Award of Performance Shares or Performance Units as a Qualified Performance-Based Award. The length
of the Performance Period, the Performance Goals to be achieved during the Performance Period, and the measure of whether and to
what degree such Performance Goals have been attained shall be conclusively determined by the Administrator in the exercise of
its absolute discretion. Performance Goals may include minimum, maximum and target levels of performance, with the size of the
Award or payout of Performance Shares or Performance Units or the vesting or lapse of restrictions with respect thereto based on
the level attained. An Award of Performance Shares or Performance Units shall be settled as and when the Award vests or at a later
time specified in the Award Agreement or in accordance with an election of the Participant, if the Administrator so permits, that
meets the requirements of Section 409A of the Code.

 

(iii) Additional Terms and Conditions.  The
Administrator may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions, and/or limitations,
if any, of any Award of Performance Shares or Performance Units, provided they are not inconsistent with the Plan.

 

(i) Other Stock-Based Awards.  The
Administrator may from time to time grant to Eligible Individuals Awards in the form of Other Stock-Based Awards. Other Stock-Based
Awards in the form of Dividend Equivalents may be (A) awarded on a free-standing basis or in connection with another Award other
than a stock option or stock appreciation right, (B) paid currently or credited to an account for the Participant, including the
reinvestment of such credited amounts in Common Stock equivalents, to be paid on a deferred basis, and (C) settled in cash or
Common Stock as determined by the Administrator; provided, however, that Dividend Equivalents payable on Other Stock-Based
Awards that are granted as a Performance Award shall, rather than be paid on a current basis, be accrued and made subject to forfeiture
at least until achievement of the applicable Performance Goal related to such Other Stock-Based Awards. Any such settlements,
and any such crediting of Dividend Equivalents, may be subject to such conditions, restrictions and contingencies as the Administrator
shall establish.

 

    	 	8	 

     

    

 

(j) Qualified Performance-Based Awards.

 

(i) Stock Options and Stock Appreciation
Rights.  The provisions of the Plan are intended to ensure that all stock options and stock appreciation rights granted
hereunder to any Participant who is or may be a “covered employee” (within the meaning of Section 162(m)(3) of the
Code) in the tax year in which such stock option or stock appreciation right is expected to be deductible to CytoSorbents or a
Subsidiary qualify for the Section 162(m) Exemption, and all such Awards shall therefore be considered Qualified Performance-Based
Awards, and the Plan shall be interpreted and operated consistent with that intention.

 

(ii) Grant Process for Performance Awards.  When
granting any Award other than a stock option or stock appreciation right, the Administrator may designate such Award as a Qualified
Performance-Based Award, based upon a determination that (A) the recipient is or may be a “covered employee” (within
the meaning of Section 162(m)(3) of the Code) with respect to such Award and (B) the Administrator wishes such Award to qualify
for the Section 162(m) Exemption. For any Award so designated as a Qualified Performance-Based Award, the Administrator shall take
steps to ensure that the terms of any such Award (and of the grant thereof) shall be consistent with such designation (including,
without limitation, that all such Awards be granted by a committee composed solely of “outside directors” (within the
meaning of Section 162(m) of the Code) and that the Performance Goals be established, in writing, by the Administrator within the
time period prescribed by Section 162(m) of the Code). The Performance Goals established by the Administrator for each Qualified
Performance-Based Award shall be objective such that a third party having knowledge of the relevant facts could determine whether
or not any Performance Goal has been achieved, or the extent of such achievement, and the amount, if any, which has been earned
by the Participant based on such performance. The Administrator may retain in an Award Agreement the discretion to reduce (but
not to increase) the amount or number of Qualified Performance-Based Awards which will be earned based on the achievement of Performance
Goals. When the Performance Goals are established, the Administrator shall also specify the manner in which the level of achievement
of such Performance Goals shall be calculated and the weighting assigned to such Performance Goals.

 

(iii) Certification and Payment.  Following
completion of the applicable Performance Period, and prior to any, as applicable, grant, vesting, lapse of restrictions on or payment
of a Qualified Performance-Based Award, the Administrator shall determine in accordance with the terms of the Award and shall certify
in writing whether the applicable Performance Goal(s) were achieved, or the level of such achievement, and the amount, if any,
earned by the Participant based upon such performance. For this purpose, approved minutes of the meeting of the Administrator at
which certification is made shall be sufficient to satisfy the requirement of a written certification. No Qualified Performance-Based
Awards will be granted, become vested, have restrictions lapse or be paid, as applicable, for a Performance Period until such certification
is made by the Administrator. The amount of a Qualified Performance-Based Award actually granted, vested, or paid to a Participant,
or on which restrictions shall lapse, may be less than the amount determined by the applicable Performance Goal formula, at the
discretion of the Administrator to take into account additional factors that the Administrator may deem relevant to the assessment
of individual or corporate performance for the Performance Period or otherwise, subject to the terms and conditions of the applicable
Award Agreement.

 

(iv) Performance Goals.  Performance
Goals may be applied on a per share or absolute basis and relative to one or more Performance Metrics, or any combination thereof,
and may be measured pursuant to U.S. generally accepted accounting principles (“GAAP”), non-GAAP or other objective
standards in a manner consistent with CytoSorbents’ or its Subsidiary’s established accounting policies, all as the
Administrator shall determine at the time the Performance Goals for a Performance Period are established. The Administrator may,
in its sole discretion, provide that one or more objectively determinable adjustments shall be made to the manner in which one
or more of the Performance Goals is to be calculated or measured to take into account, or ignore, one or more of the following:
(1) items related to a change in accounting principle; (2) items relating to financing activities; (3) expenses for restructuring
or productivity initiatives; (4) other non-operating items; (5) items related to acquisitions; (6) items attributable to the business
operations of any entity acquired by the Company during the Performance Period; (7) items related to the sale or disposition of
a business or segment of a business; (8) items related to discontinued operations that do not qualify as a segment of a business
under U.S. generally accepted accounting principles; (9) items attributable to any stock dividend, stock split, combination or
exchange of stock occurring during the Performance Period; (10) any other items of significant income or expense which are determined
to be appropriate adjustments; (11) items relating to unusual or extraordinary corporate transactions, events or developments,
(12) items related to amortization of acquired intangible assets; (13) items that are outside the scope of the Company’s
core, on-going business activities; (14) changes in foreign currency exchange rates; (15) items relating to changes in tax laws;
(16) certain identified expenses (including, but not limited to, cash bonus expenses, incentive expenses and acquisition-related
transaction and integration expenses); (17) items relating to asset impairment charges; or (18) items relating to gains or unusual
or nonrecurring events or changes in applicable law, accounting principles or business conditions. For all Awards intended to
qualify as Qualified Performance-Based Awards, such determinations shall be made within the time prescribed by, and otherwise
in compliance with, Section 162(m) of the Code.

 

    	 	9	 

     

    

 

(v) Non-delegation.  No
delegate of the Administrator is permitted to exercise authority granted to the Administrator under Section 4 to the extent that
the exercise of such authority by the delegate would cause an Award designated as a Qualified Performance-Based Award not to qualify
for, or to cease to qualify for, the Section 162(m) Exemption.

 

(k) Awards to Participants Outside the
United States.  The Administrator may grant Awards to Eligible Individuals who are foreign nationals, who are located
outside the United States or who are not compensated from a payroll maintained in the United States, or who are otherwise subject
to (or could cause CytoSorbents or a Subsidiary to be subject to) tax, legal or regulatory provisions of countries or jurisdictions
outside the United States, on such terms and conditions different from those specified in the Plan as may, in the judgment of the
Administrator, be necessary or desirable in order that any such Award shall conform to laws, regulations, and customs of the country
or jurisdiction in which the Participant is then resident or primarily employed or to foster and promote achievement of the purposes
of the Plan.

 

(l) Limitation on Dividend Reinvestment
and Dividend Equivalents.  Reinvestment of dividends in additional Restricted Stock at the time of any dividend payment,
and the payment of shares of Common Stock with respect to dividends to Participants holding Awards of stock Units, shall only be
permissible if sufficient shares are available under the Share Pool for such reinvestment or payment (taking into account then
outstanding Awards). In the event that sufficient shares are not available under the Share Pool for such reinvestment or payment,
such reinvestment or payment shall be made in the form of a grant of stock Units equal in number to the shares of Common Stock
that would have been obtained by such payment or reinvestment, the terms of which stock Units shall provide for settlement in cash
and for Dividend Equivalent reinvestment in further stock Units on the terms contemplated by this Section 7(l).

 

8. Withholding of Taxes.

 

Participants and holders of Awards shall
pay to CytoSorbents or its Affiliate, or make arrangements satisfactory to the Administrator for payment of, any Tax Withholding
Obligation in respect of Awards granted under the Plan no later than the date of the event creating the tax or social insurance
contribution liability. The obligations of CytoSorbents under the Plan shall be conditional on such payment or arrangements. Unless
otherwise determined by the Administrator, Tax Withholding Obligations may be settled in whole or in part with shares of Common
Stock, including unrestricted outstanding shares surrendered to CytoSorbents and unrestricted shares that are part of the Award
that gives rise to the Tax Withholding Obligation, having a Fair Market Value on the date of surrender or withholding equal to
the statutory minimum amount (and not any greater amount) required to be withheld for tax or social insurance contribution purposes,
all in accordance with such procedures as the Administrator establishes. CytoSorbents or its Affiliate may deduct, to the extent
permitted by law, any such Tax Withholding Obligations from any payment of any kind otherwise due to the Participant or holder
of an Award.

 

    	 	10	 

     

    

 

9. Transferability of Awards.

 

General Nontransferability Absent Administrator
Permission.  Except as otherwise determined by the Administrator or as required by applicable law, and in any event
in the case of an Incentive Stock Option or a tandem stock appreciation right granted with respect to an Incentive Stock Option,
no Award granted under the Plan shall be transferable by a Participant otherwise than by will or the laws of descent and distribution.
The Administrator shall not permit any transfer of an Award for value. An Award may be exercised during the lifetime of the Participant,
only by the Participant or, during the period the Participant is under a legal disability, by the Participant’s guardian
or legal representative, unless otherwise determined by the Administrator. Awards granted under the Plan shall not be subject in
any manner to alienation, anticipation, sale, transfer, assignment, pledge, or encumbrance, except as otherwise determined by the
Administrator; provided, however, that the restrictions in this sentence shall not apply to the shares of Common Stock received
in connection with an Award after the date that the restrictions on transferability of such shares set forth in the applicable
Award Agreement have lapsed. Nothing in this paragraph shall be interpreted or construed as overriding the terms of any CytoSorbents
stock ownership or retention policy, now or hereafter existing, that may apply to the Participant or shares of Common Stock received
under an Award.

 

10. Adjustments for Corporate Transactions and Other Events.

 

(a) Mandatory Adjustments.  In
the event of a merger, consolidation, stock rights offering, statutory share exchange or similar event affecting CytoSorbents (each,
a “Corporate Event”) or a stock dividend, stock split, reverse stock split, separation, spinoff, reorganization,
extraordinary dividend of cash or other property, share combination or subdivision, or recapitalization or similar event affecting
the capital structure of CytoSorbents (each, a “Share Change”) that occurs at any time after adoption of this
Plan by the Board (including any such Corporate Event or Share Change that occurs after such adoption and coincident with or prior
to the Effective Date), the Administrator shall make equitable and appropriate substitutions or proportionate adjustments to (i)
the aggregate number and kind of shares of Common Stock or other securities on which Awards under the Plan may be granted to Eligible
Individuals, (ii) the maximum number of shares of Common Stock or other securities with respect to which Awards may be granted
during any one calendar year to any individual, (iii) the maximum number of shares of Common Stock or other securities that may
be issued with respect to Incentive Stock Options granted under the Plan, (iv) the number of shares of Common Stock or other securities
covered by each outstanding Award and the exercise price, base price or other price per share, if any, and other relevant terms
of each outstanding Award, and (v) all other numerical limitations relating to Awards, whether contained in this Plan or in Award
Agreements; provided, however, that any fractional shares resulting from any such adjustment shall be eliminated.

 

(b) Discretionary Adjustments.  In
the case of Corporate Events, the Administrator may make such other adjustments to outstanding Awards as it determines to be appropriate
and desirable, which adjustments may include, without limitation, (i) the cancellation of outstanding Awards in exchange for payments
of cash, securities or other property or a combination thereof having an aggregate value equal to the value of such Awards, as
determined by the Administrator in its sole discretion (it being understood that in the case of a Corporate Event with respect
to which stockholders of CytoSorbents receive consideration other than publicly traded equity securities of the ultimate surviving
entity, any such determination by the Administrator that the value of a stock option or stock appreciation right shall for this
purpose be deemed to equal the excess, if any, of the value of the consideration being paid for each share of Common Stock pursuant
to such Corporate Event over the exercise price or base price of such stock option or stock appreciation right shall conclusively
be deemed valid and that any stock option or stock appreciation right may be cancelled for no consideration upon a Corporate Event
if its exercise price or base price does not exceed the value of the consideration being paid for each share of Common Stock pursuant
to such Corporate Event), (ii) the substitution of securities or other property (including, without limitation, cash or other securities
of CytoSorbents and securities of entities other than CytoSorbents) for the shares of Common Stock subject to outstanding Awards,
and (iii) the substitution of equivalent awards, as determined in the sole discretion of the Administrator, of the surviving or
successor entity or a parent thereof (“Substitute Awards”).

 

(c) Adjustments to Performance Goals.  The
Administrator may, in its discretion, adjust the Performance Goals applicable to any Awards to reflect any unusual or non-recurring
events and other extraordinary items, impact of charges for restructurings, discontinued operations and the cumulative effects
of accounting or tax changes, each as defined by generally accepted accounting principles or as identified in CytoSorbents’s
consolidated financial statements, notes to the consolidated financial statements, management’s discussion and analysis
or other CytoSorbents filings with the Securities and Exchange Commission; provided, however, that, except in connection
with death, disability or a Change in Control, no such adjustment shall be made if the effect would be to cause an Award that
is intended to be a Qualified Performance-Based Award to no longer constitute a Qualified Performance-Based Award. If the Administrator
determines that a change in the business, operations, corporate structure or capital structure of CytoSorbents or the applicable
subsidiary, business segment or other operational unit of CytoSorbents or any such entity or segment, or the manner in which any
of the foregoing conducts its business, or other events or circumstances, render the Performance Goals to be unsuitable, the Administrator
may modify such Performance Goals or the related minimum acceptable level of achievement, in whole or in part, as the Administrator
deems appropriate and equitable; provided, however, that, except in connection with death, disability or a Change in Control,
no such modification shall be made if the effect would be to cause an Award that is intended to be a Qualified Performance-Based
Award to no longer constitute a Qualified Performance-Based Award.

 

    	 	11	 

     

    

 

(d) Statutory Requirements Affecting Adjustments.  Notwithstanding
the foregoing: (A) any adjustments made pursuant to Section 10 to Awards that are considered “deferred compensation”
within the meaning of Section 409A of the Code shall be made in compliance with the requirements of Section 409A of the Code; (B)
any adjustments made pursuant to Section 10 to Awards that are not considered “deferred compensation” subject to Section
409A of the Code shall be made in such a manner as to ensure that after such adjustment, the Awards either (1) continue not to
be subject to Section 409A of the Code or (2) comply with the requirements of Section 409A of the Code; (C) in any event, the Administrator
shall not have the authority to make any adjustments pursuant to Section 10 to the extent the existence of such authority would
cause an Award that is not intended to be subject to Section 409A of the Code at the date of grant to be subject thereto; and (D)
any adjustments made pursuant to Section 10 to Awards that are Incentive Stock Options shall be made in compliance with the requirements
of Section 424(a) of the Code.

 

(e) Dissolution or Liquidation.  Unless
the Administrator determines otherwise, all Awards outstanding under the Plan shall terminate upon the dissolution or liquidation
of CytoSorbents.

 

11. Change in Control Provisions.

 

(a) Termination of Awards.  Notwithstanding
the provisions of Section 11(b), in the event that any transaction resulting in a Change in Control occurs, outstanding Awards
will terminate upon the effective time of such Change in Control unless provision is made in connection with the transaction for
the continuation or assumption of such Awards by, or for the issuance therefor of Substitute Awards of, the surviving or successor
entity or a parent thereof. Solely with respect to Awards that will terminate as a result of the immediately preceding sentence
and except as otherwise provided in the applicable Award Agreement:

 

(i) the outstanding Awards of stock options
and stock appreciation rights that will terminate upon the effective time of the Change in Control shall, immediately before the
effective time of the Change in Control, become fully exercisable and the holders of such Awards will be permitted, immediately
before the Change in Control, to exercise the Awards;

 

(ii) the outstanding shares of Restricted
Stock the vesting or restrictions on which are then solely time-based and not subject to achievement of Performance Goals shall,
immediately before the effective time of the Change in Control, become fully vested, free of all transfer and lapse restrictions
and free of all risks of forfeiture;

 

(iii) the outstanding shares of Restricted
Stock the vesting or restrictions on which are then subject to and pending achievement of Performance Goals shall, immediately
before the effective time of the Change in Control and unless the Award Agreement provides for vesting or lapsing of restrictions
in a greater amount upon the occurrence of a Change in Control, become vested, free of transfer and lapse restrictions and risks
of forfeiture in such amounts as if the applicable Performance Goals for the unexpired Performance Period had been achieved at
the target level set forth in the applicable Award Agreement;

 

    	 	12	 

     

    

 

(iv) the outstanding Restricted Stock Units,
Performance Shares and Performance Units the vesting, earning or settlement of which is then solely time-based and not subject
to or pending achievement of Performance Goals shall, immediately before the effective time of the Change in Control, become fully
earned and vested and shall be settled in cash or shares of Common Stock (consistent with the terms of the Award Agreement after
taking into account the effect of the Change in Control transaction on the shares) as promptly as is practicable, subject to any
applicable limitations imposed thereon by Section 409A of the Code; and

 

(v) the outstanding Restricted Stock Units,
Performance Shares and Performance Units the vesting, earning or settlement of which is then subject to and pending achievement
of Performance Goals shall, immediately before the effective time of the Change in Control and unless the Award Agreement provides
for vesting, earning or settlement in a greater amount upon the occurrence of a Change in Control, become vested and earned in
such amounts as if the applicable Performance Goals for the unexpired Performance Period had been achieved at the target level
set forth in the applicable Award Agreement and shall be settled in cash or shares of Common Stock (consistent with the terms of
the Award Agreement after taking into account the effect of the Change in Control transaction on the shares) as promptly as is
practicable, subject to any applicable limitations imposed thereon by Section 409A of the Code.

 

Implementation of the provisions of this
Section 11(a) shall be conditioned upon consummation of the Change in Control.

 

(b) Other Permitted Actions.  In
the event that any transaction resulting in a Change in Control occurs, the Administrator may take any of the actions set forth
in Section 10 with respect to any or all Awards granted under the Plan.

 

(c) Section 409A Savings Clause.  Notwithstanding
the foregoing, if any Award is considered to be a “nonqualified deferred compensation plan” within the meaning of Section
409A of the Code, this Section 11 shall apply to such Award only to the extent that its application would not result in the imposition
of any tax or interest or the inclusion of any amount in income under Section 409A of the Code.

 

12. Substitution of Awards in Mergers and Acquisitions.

 

Awards may be granted under the Plan from
time to time in substitution for assumed awards held by employees, officers, consultants or directors of entities who become employees,
officers, consultants or directors of CytoSorbents or a Subsidiary as the result of a merger or consolidation of the entity for
which they perform services with CytoSorbents or a Subsidiary, or the acquisition by CytoSorbents of the assets or stock of the
such entity. The terms and conditions of any Awards so granted may vary from the terms and conditions set forth herein to the extent
that the Administrator deems appropriate at the time of grant to conform the Awards to the provisions of the assumed awards for
which they are substituted and to preserve their intrinsic value as of the date of the merger, consolidation or acquisition transaction.
To the extent permitted by applicable law and marketplace or listing rules of the primary securities market or exchange on which
the Common Stock is listed or admitted for trading, any available shares under a stockholder-approved plan of an acquired company
(as appropriately adjusted to reflect the transaction) may be used for Awards granted pursuant to this Section 12 and, upon such
grant, shall not reduce the Share Pool.

 

13. Compliance with Securities Laws; Listing and Registration.

 

(a) The obligation of CytoSorbents to sell
or deliver Common Stock with respect to any Award granted under the Plan shall be subject to all applicable laws, rules and regulations,
including all applicable federal, state securities laws, and the obtaining of all such approvals by governmental agencies as may
be deemed necessary or appropriate by the Administrator. If at any time the Administrator determines that the delivery of Common
Stock under the Plan is or may be unlawful under the laws of any applicable jurisdiction, or Federal, state or foreign (non-United
States) securities laws, the right to exercise an Award or receive shares of Common Stock pursuant to an Award shall be suspended
until the Administrator determines that such delivery is lawful. If at any time the Administrator determines that the delivery
of Common Stock under the Plan would or may violate the rules of any exchange on which CytoSorbents’s securities are then
listed for trade, the right to exercise an Award or receive shares of Common Stock pursuant to an Award shall be suspended until
the Administrator determines that such delivery would not violate such rules. If the Administrator determines that the exercise
or nonforfeitability of, or delivery of benefits pursuant to, any Award would violate any applicable provision of securities laws
or the listing requirements of any stock exchange upon which any of CytoSorbents’s equity securities are listed, then the
Administrator may postpone any such exercise, nonforfeitability or delivery, as applicable, but CytoSorbents shall use all reasonable
efforts to cause such exercise, nonforfeitability or delivery to comply with all such provisions at the earliest practicable date.

 

    	 	13	 

     

    

 

(b) Each Award is subject to the requirement
that, if at any time the Administrator determines, in its absolute discretion, that the listing, registration or qualification
of Common Stock issuable pursuant to the Plan is required by any securities exchange or under any state, federal or foreign (non-United
States) law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in
connection with, the grant of an Award or the issuance of Common Stock, no such Award shall be granted or payment made or Common
Stock issued, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained
free of any conditions not acceptable to the Administrator.

 

(c) In the event that the disposition of
Common Stock acquired pursuant to the Plan is not covered by a then current registration statement under the Securities Act of
1933, as amended (the “Securities Act”), and is not otherwise exempt from such registration, such Common Stock
shall be restricted against transfer to the extent required by the Securities Act or regulations thereunder, and the Administrator
may require a person receiving Common Stock pursuant to the Plan, as a condition precedent to receipt of such Common Stock, to
represent to CytoSorbents in writing that the Common Stock acquired by such person is acquired for investment only and not with
a view to distribution and that such person will not dispose of the Common Stock so acquired in violation of Federal, state or
foreign securities laws and furnish such information as may, in the opinion of counsel for the Company, be appropriate to permit
the Company to issue the Common Stock in compliance with applicable Federal, state or foreign securities laws.

 

14. Section 409A Compliance.

 

It is the intention of CytoSorbents that
any Award that constitutes a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Code
shall comply in all respects with the requirements of Section 409A of the Code to avoid the imposition of any tax or interest
or the inclusion of any amount in income pursuant to Section 409A of the Code, and the terms of each such Award shall be construed,
administered and deemed amended, if applicable, in a manner consistent with this intention. Notwithstanding the foregoing, neither
CytoSorbents nor any of its Affiliates nor any of its or their directors, officers, employees, agents or other service providers
will be liable for any taxes, penalties or interest imposed on any Participant or other person with respect to any amounts paid
or payable (whether in cash, shares of Common Stock or other property) under any Award, including any taxes, penalties or interest
imposed under or as a result of Section 409A of the Code. Any payments described in an Award that are due within the “short
term deferral period” as defined in Section 409A of the Code shall not be treated as deferred compensation unless applicable
law requires otherwise. For purposes of any Award, each amount to be paid or benefit to be provided to a Participant that constitutes
deferred compensation subject to Section 409A of the Code shall be construed as a separate identified payment for purposes of
Section 409A of the Code. For purposes of Section 409A of the Code, the payment of Dividend Equivalents under any Award shall
be construed as earnings and the time and form of payment of such Dividend Equivalents shall be treated separately from the time
and form of payment of the underlying Award. Notwithstanding any other provision of the Plan to the contrary, with respect to
any Award that constitutes a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Code,
any payments (whether in cash, shares of Common Stock or other property) to be made with respect to the Award that become payable
on account of the Participant’s separation from service, within the meaning of Section 409A of the Code, while the Participant
is a “specified employee” (as determined in accordance with the uniform policy adopted by the Administrator with respect
to all of the arrangements subject to Section 409A of the Code maintained by CytoSorbents and its Affiliates) and which would
otherwise be paid within six months after the Participant’s separation from service shall be accumulated (without interest)
and paid on the first day of the seventh month following the Participant’s separation from service or, if earlier, within
15 days after the appointment of the personal representative or executor of the Participant’s estate following the Participant’s
death. Notwithstanding anything in the Plan or an Award Agreement to the contrary, in no event shall the Administrator exercise
its discretion to accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred compensation
within the meaning of Code section 409A unless, and solely to the extent that, such accelerated payment or settlement is permissible
under Treasury Regulation section 1.409A-3(j)(4).

 

    	 	14	 

     

    

 

15. Plan Duration; Amendment and Discontinuance.

 

(a) Plan Duration.  The
Plan shall remain in effect, subject to the right of the Board or the Compensation Committee to amend or terminate the Plan at
any time, until the earlier of (a) the earliest date as of which all Awards granted under the Plan have been satisfied in full
or terminated and no shares of Common Stock approved for issuance under the Plan remain available to be granted under new Awards
or (b) April 12, 2027. No Awards shall be granted under the Plan after such termination date. Subject to other applicable provisions
of the Plan, all Awards made under the Plan on or before April 12, 2027, or such earlier termination of the Plan, shall remain
in effect until such Awards have been satisfied or terminated in accordance with the Plan and the terms of such Awards.

 

(b) Amendment and Discontinuance of the
Plan.  The Board or the Compensation Committee may amend, alter or discontinue the Plan, but no amendment, alteration
or discontinuation shall be made which would materially impair the rights of a Participant with respect to a previously granted
Award without such Participant’s consent, except such an amendment made to comply with applicable law or rule of any securities
exchange or market on which the Common Stock is listed or admitted for trading or to prevent adverse tax or accounting consequences
to CytoSorbents or the Participant. Notwithstanding the foregoing, no such amendment shall be made without the approval of CytoSorbents’s
stockholders to the extent such amendment would (A) materially increase the benefits accruing to Participants under the Plan, (B)
materially increase the number of shares of Common Stock which may be issued under the Plan or to a Participant, (C) materially
expand the eligibility for participation in the Plan, (D) eliminate or modify the prohibition set forth in Section 7(f) on repricing
of stock options and stock appreciation rights, (E) lengthen the maximum term or lower the minimum exercise price or base price
permitted for stock options and stock appreciation rights, or (F) modify the prohibition on the issuance of reload or replenishment
options. Except as otherwise determined by the Board or Compensation Committee, termination of the Plan shall 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.

 

(c) Amendment of Awards.  Subject
to Section 7(e), the Administrator may unilaterally amend the terms of any Award theretofore granted, but no such amendment shall
materially impair the rights of any Participant with respect to an Award without the Participant’s consent, except such an
amendment made to cause the Plan or Award to comply with applicable law, applicable rule of any securities exchange on which the
Common Stock is listed or admitted for trading, or to prevent adverse tax or accounting consequences for the Participant or the
Company or any of its Affiliates. For purposes of the foregoing sentence, an amendment to an Award that results in a change in
the tax consequences of the Award to the Participant shall not be considered to be a material impairment of the rights of the Participant
and shall not require the Participant’s consent.

 

16. General Provisions.

 

(a) Non-Guarantee of Employment or Service.  Nothing
in the Plan or in any Award Agreement thereunder shall confer any right on an individual to continue in the service of CytoSorbents
or any Affiliate or shall interfere in any way with the right of CytoSorbents or any Affiliate to terminate such service at any
time with or without cause or notice and whether or not such termination results in (i) the failure of any Award to vest or become
payable; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any other adverse effect on the individual’s
interests under any Award or the Plan. No person, even though deemed an Eligible Individual, shall have a right to be selected
as a Participant, or, having been so selected, to be selected again as a Participant. To the extent that an Eligible Individual
who is an employee of a Subsidiary receives an Award under the Plan, that Award shall in no event be understood or interpreted
to mean that CytoSorbents is the Participant’s employer or that the Participant has an employment relationship with CytoSorbents.

 

    	 	15	 

     

    

 

(b) No Trust or Fund Created.  Neither
the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship
between CytoSorbents and a Participant or any other person. To the extent that any Participant or other person acquires a right
to receive payments from CytoSorbents pursuant to an Award, such right shall be no greater than the right of any unsecured general
creditor of CytoSorbents.

 

(c) Status of Awards.  Awards
shall be special incentive payments to the Participant and shall not be taken into account in computing the amount of salary or
compensation of the Participant for purposes of determining any pension, retirement, death, severance or other benefit under (a)
any pension, retirement, profit-sharing, bonus, insurance, severance or other employee benefit plan of CytoSorbents or any Affiliate
now or hereafter in effect under which the availability or amount of benefits is related to the level of compensation or (b) any
agreement between (i) CytoSorbents or any Affiliate and (ii) the Participant, except as such plan or agreement shall otherwise
expressly provide.

 

(d) Subsidiary Employees.  In
the case of a grant of an Award to an Eligible Individual who provides services to any Subsidiary, CytoSorbents may, if the Administrator
so directs, issue or transfer the shares of Common Stock, if any, covered by the Award to the Subsidiary, for such lawful consideration
as the Administrator may specify, upon the condition or understanding that the Subsidiary will transfer the shares of Common Stock
to the Eligible Individual in accordance with the terms of the Award specified by the Administrator pursuant to the provisions
of the Plan. All shares of Common Stock underlying Awards that are forfeited or canceled after such issue or transfer of shares
to the Subsidiary shall revert to CytoSorbents.

 

(e) Governing Law and Interpretation.  The
validity, construction and effect of the Plan, of Award Agreements entered into pursuant to the Plan, and of any rules, regulations,
determinations or decisions made by the Administrator relating to the Plan or such Award Agreements, and the rights of any and
all persons having or claiming to have any interest therein or thereunder, shall be determined exclusively in accordance with applicable
United States federal laws and the laws of the State of Delaware without regard to its conflict of laws principles. The captions
of the Plan are not part of the provisions hereof and shall have no force or effect. Except where the context otherwise requires:
(i) the singular includes the plural and vice versa; (ii) a reference to one gender includes other genders; (iii) a reference to
a person includes a natural person, partnership, corporation, association, governmental or local authority or agency or other entity;
and (iv) a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations,
amendments, re-enactments or replacements of any of them.

 

(f) Use of English Language.  The
Plan, each Award Agreement, and all other documents, notices and legal proceedings entered into, given or instituted pursuant to
an Award shall be written in English, unless otherwise determined by the Administrator. If a Participant receives an Award Agreement,
a copy of the Plan or any other documents related to an Award translated into a language other than English, and if the meaning
of the translated version is different from the English version, the English version shall control.

 

(g) Recovery of Amounts Paid.  Except
as otherwise provided by the Administrator, Awards granted under the Plan shall be subject to any and all policies, guidelines,
codes of conduct, or other agreement or arrangement adopted by the Board or Compensation Committee with respect to the recoupment,
recovery or clawback of compensation (collectively, the “Recoupment Policy”) and/or to any provisions set forth in
the applicable Award Agreement under which CytoSorbents may recover from current and former Participants any amounts paid or shares
of Common Stock issued under an Award and any proceeds therefrom under such circumstances as the Administrator determines appropriate.
The Administrator may apply the Recoupment Policy to Awards granted before the policy is adopted to the extent required by applicable
law or rule of any securities exchange or market on which shares of Common Stock are listed or admitted for trading, as determined
by the Administrator in its sole discretion.

 

17. Glossary.

 

Under this Plan, except where the context otherwise indicates,
the following definitions apply:

 

“Administrator” means
the Compensation Committee, or such other committee(s) or officer(s) duly appointed by the Board or the Compensation Committee
to administer the Plan or delegated limited authority to perform administrative actions under the Plan, and having such powers
as shall be specified by the Board or the Compensation Committee; provided, however, that at any time the Board may serve as the
Administrator in lieu of or in addition to the Compensation Committee or such other committee(s) or officer(s) to whom administrative
authority has been delegated. With respect to any Award to which Section 16 of the Exchange Act applies, the Administrator shall
consist of either the Board or a committee of the Board, which committee shall consist of two or more directors, each of whom
is intended to be, to the extent required by Rule 16b-3 of the Exchange Act, a “non-employee director” as defined
in Rule 16b-3 of the Exchange Act and an “independent director” to the extent required by the rules of the national
securities exchange that is the principal trading market for the Common Stock, and with respect to any Award that is intended
to be a Qualified Performance-Based Award, the Administrator shall consist of two or more directors, each of whom is intended
to be, to the extent required by Section 162(m) of the Code, an “outside director” as defined under Section 162(m)
of the Code; provided, that with respect to Awards made to a member of the Board who is not an employee of the Company,
“Administrator” means the Board. Any member of the Administrator who does not meet the foregoing requirements shall
abstain from any decision regarding an Award and shall not be considered a member of the Administrator to the extent required
to comply with Rule 16b-3 of the Exchange Act or Section 162(m) of the Code.

 

    	 	16	 

     

    

 

“Affiliate” means any
entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, CytoSorbents or any
successor to CytoSorbents. For this purpose, “control” (including the correlative meanings of the terms “controlled
by” and “under common control with”) shall mean ownership, directly or indirectly, of 50% or more of the total
combined voting power of all classes of voting securities issued by such entity, or the possession, directly or indirectly, of
the power to direct the management and policies of such entity, by contract or otherwise.

 

“Award” means any stock
option, stock appreciation right, stock award, stock unit, Performance Share, Performance Unit, and/or Other Stock-Based Award
granted under this Plan.

 

“Award Agreement” means
the written document(s), including an electronic writing acceptable to the Administrator, and any notice, addendum or supplement
thereto, memorializing the terms and conditions of an Award granted pursuant to the Plan and which shall incorporate the terms
of the Plan.

 

“Board” means the Board
of Directors of CytoSorbents.

 

“Change in Control” means
the first of the following to occur: (i) a Change in Ownership of CytoSorbents, (ii) a Change in Effective Control of CytoSorbents,
or (iii) a Change in the Ownership of Assets of CytoSorbents, as described herein and construed in accordance with Code section
409A.

 

(i) A “Change in Ownership of CytoSorbents”
shall occur on the date that any one Person acquires, or Persons Acting as a Group acquire, ownership of the capital stock of CytoSorbents
that, together with the stock held by such Person or Group, constitutes more than 50% of the total fair market value or total voting
power of the capital stock of CytoSorbents. However, if any one Person is, or Persons Acting as a Group are, considered to own
more than 50%, on a fully diluted basis, of the total fair market value or total voting power of the capital stock of CytoSorbents,
the acquisition of additional stock by the same Person or Persons Acting as a Group is not considered to cause a Change in Ownership
of CytoSorbents or to cause a Change in Effective Control of CytoSorbents (as described below). An increase in the percentage of
capital stock owned by any one Person, or Persons Acting as a Group, as a result of a transaction in which CytoSorbents acquires
its stock in exchange for property will be treated as an acquisition of stock.

 

(ii) A “Change in Effective Control
of CytoSorbents” shall occur on the date either (A) a majority of members of CytoSorbents’s Board is replaced during
any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of CytoSorbents’s
Board before the date of the appointment or election, or (B) any one Person, or Persons Acting as a Group, acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) ownership of stock of CytoSorbents
possessing 35% or more of the total voting power of the stock of CytoSorbents.

 

(iii) A “Change in the Ownership of
Assets of CytoSorbents” shall occur on the date that any one Person acquires, or Persons Acting as a Group acquire (or has
or have acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons), assets
from CytoSorbents that have a total gross fair market value equal to or more than 60% of the total gross fair market value of
all of the assets of CytoSorbents immediately before such acquisition or acquisitions. For this purpose, gross fair market value
means the value of the assets of CytoSorbents, or the value of the assets being disposed of, determined without regard to any
liabilities associated with such assets.

 

    	 	17	 

     

    

 

The following rules of construction apply
in interpreting the definition of Change in Control:

 

(A) A “Person” means any
individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended,
other than employee benefit plans sponsored or maintained by CytoSorbents and by entities controlled by CytoSorbents or an underwriter,
initial purchaser or placement agent temporarily holding the capital stock of CytoSorbents pursuant to a registered public offering.

 

(B) Persons will be considered to be Persons
Acting as a Group (or Group) if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition
of stock, or similar business transaction with the corporation. If a Person owns stock in both corporations that enter into a merger,
consolidation, purchase or acquisition of stock, or similar transaction, such stockholder is considered to be acting as a Group
with other stockholders only with respect to the ownership in that corporation before the transaction giving rise to the change
and not with respect to the ownership interest in the other corporation. Persons will not be considered to be acting as a Group
solely because they purchase assets of the same corporation at the same time or purchase or own stock of the same corporation at
the same time, or as a result of the same public offering.

 

(C) A Change in Control shall not include
a transfer to a related person as described in Code section 409A or a public offering of capital stock of CytoSorbents.

 

(D) For purposes of the definition of Change
in Control, Section 318(a) of the Code applies to determine stock ownership. Stock underlying a vested option is considered owned
by the individual who holds the vested option (and the stock underlying an unvested option is not considered owned by the individual
who holds the unvested option). For purposes of the preceding sentence, however, if a vested option is exercisable for stock that
is not substantially vested (as defined by Treasury Regulation §1.83-3(b) and (j)), the stock underlying the option is not
treated as owned by the individual who holds the option.

 

“CytoSorbents” means CytoSorbents
Corporation, a Delaware corporation.

 

“Code” means the Internal
Revenue Code of 1986, as amended from time to time, and any successor thereto, the Treasury Regulations thereunder and other relevant
interpretive guidance issued by the Internal Revenue Service or the Treasury Department. Reference to any specific section of the
Code shall be deemed to include such regulations and guidance, as well as any successor section, regulations and guidance.

 

“Common Stock” means shares
of common stock of CytoSorbents, par value $0.001 per share, and any capital securities into which they are converted.

 

“Company” means CytoSorbents
and its Subsidiaries, except where the context otherwise requires. For purposes of determining whether a Change in Control has
occurred, Company shall mean only CytoSorbents.

 

“Compensation Committee”
means the Compensation Committee of the Board.

 

“Dividend Equivalent”
means a right, granted to a Participant, to receive cash, Common Stock, stock Units or other property equal in value to dividends
paid with respect to a specified number of shares of Common Stock.

 

“Effective Date” means
the date on which adoption of the Plan is approved by the stockholders of CytoSorbents.

 

“Eligible
Individuals” means (i) officers and employees of, and other individuals, including non-employee directors, who are
natural persons providing bona fide services to or for, CytoSorbents or any of its Subsidiaries, provided that such
services are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or
indirectly promote or maintain a market for CytoSorbents’s securities, and (ii) prospective officers, employees and
service providers who have accepted offers of employment or other service relationship from CytoSorbents or a Subsidiary.

 

    	 	18	 

     

    

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time, and any successor thereto. Reference to any specific section of
the Exchange Act shall be deemed to include such regulations and guidance issued thereunder, as well as any successor section,
regulations and guidance.

 

“Fair Market Value” means,
on a per share basis as of any date, unless otherwise determined by the Administrator:

 

(i) if the principal market for the Common
Stock (as determined by the Administrator if the Common Stock is listed or admitted to trading on more than one exchange or market)
is a national securities exchange or an established securities market, the official closing price per share of Common Stock for
the regular market session on that date on the principal exchange or market on which the Common Stock is then listed or admitted
to trading or, if no sale is reported for that date, on the last preceding day on which a sale was reported, all as reported by
such source as the Administrator may select;

 

(ii) if the principal market for the Common
Stock is not a national securities exchange or an established securities market, but the Common Stock is quoted by a national quotation
system, the average of the highest bid and lowest asked prices for the Common Stock on that date as reported on a national quotation
system or, if no prices are reported for that date, on the last preceding day on which prices were reported, all as reported by
such source as the Administrator may select; or

 

(iii) if the Common Stock is neither listed
or admitted to trading on a national securities exchange or an established securities market, nor quoted by a national quotation
system, the value determined by the Administrator in good faith by the reasonable application of a reasonable valuation method,
which method may, but need not, include taking into account an appraisal of the fair market value of the Common Stock conducted
by a nationally recognized appraisal firm selected by the Administrator.

 

Notwithstanding the preceding, for foreign,
federal, state and local income tax reporting purposes and for such other purposes as the Administrator deems appropriate, the
Fair Market Value shall be determined by the Administrator in accordance with uniform and nondiscriminatory standards adopted by
it from time to time.

 

“Full Value Award” means
an Award that results in CytoSorbents transferring the full value of a share of Common Stock under the Award, whether or not an
actual share of stock is issued. Full Value Awards shall include, but are not limited to, stock awards, stock units, Performance
Shares, Performance Units that are payable in Common Stock, and Other Stock-Based Awards for which CytoSorbents transfers the full
value of a share of Common Stock under the Award, but shall not include Dividend Equivalents.

 

“Incentive Stock Option”
means any stock option that is designated, in the applicable Award Agreement or the resolutions of the Administrator under which
the stock option is granted, as an “incentive stock option” within the meaning of Section 422 of the Code and otherwise
meets the requirements to be an “incentive stock option” set forth in Section 422 of the Code.

 

“Nonqualified Option”
means any stock option that is not an Incentive Stock Option.

 

“Other Stock-Based Award”
means an Award of Common Stock or any other Award that is valued in whole or in part by reference to, or is otherwise based upon,
shares of Common Stock, including without limitation Dividend Equivalents and convertible debentures.

 

“Participant” means an
Eligible Individual to whom one or more Awards are or have been granted pursuant to the Plan and have not been fully settled or
cancelled and, following the death of any such person, his successors, heirs, executors and administrators, as the case may be.

 

“Performance Award” means
a Full Value Award, the grant, vesting, lapse of restrictions or settlement of which is conditioned upon the achievement of performance
objectives over a specified Performance Period and includes, without limitation, Performance Shares and Performance Units.

 

    	 	19	 

     

    

 

“Performance Goals” means
the performance goals established by the Administrator in connection with the grant of Awards based on Performance Metrics or other
performance criteria selected by the Administrator; provided, however, that in the case of Qualified Performance-Based
Awards, such performance goals shall be based on the attainment of specified levels of one or more Performance Metrics.

 

“Performance Period” means
that period established by the Administrator during which any Performance Goals specified by the Administrator with respect to
such Award are to be measured.

 

“Performance Metrics”
means criteria established by the Administrator relating to any of the following, as it may apply to an individual, one or more
business units, divisions, or Affiliates, or on a company-wide basis, and in absolute terms, relative to a base period, or relative
to the performance of one or more comparable companies, peer groups, or an index covering multiple companies:

 

(i) Earnings or Profitability Metrics:  any
derivative of revenue; earnings/loss (gross, operating, net, or adjusted); earnings/loss before interest and taxes (“EBIT”);
earnings/loss before interest, taxes, depreciation and amortization (“EBITDA”); profit margins; operating margins;
expense levels or ratios; provided that any of the foregoing metrics may be adjusted to eliminate the effect of any one
or more of the following: interest expense, asset impairments or investment losses, early extinguishment of debt or stock-based
compensation expense;

 

(ii) Return Metrics:  any
derivative of return on investment, assets, equity or capital (total or invested);

 

(iii) Investment Metrics:  relative
risk-adjusted investment performance; investment performance of assets under management;

 

(iv) Cash Flow Metrics:  any
derivative of operating cash flow; cash flow sufficient to achieve financial ratios or a specified cash balance; free cash flow;
cash flow return on capital; net cash provided by operating activities; cash flow per share; working capital;

 

(v) Liquidity Metrics:  any
derivative of debt leverage (including debt to capital, net debt-to-capital, debt-to-EBITDA or other liquidity ratios);

 

(vi) Stock Price and Equity Metrics:  any
derivative of return on stockholders’ equity; total stockholder return; stock price; stock price appreciation; market capitalization;
earnings/loss per share (basic or diluted) (before or after taxes); and/or

 

(vii) Strategic Metrics:  metrics
including, but not limited to, product research and development; completion of an identified special project; clinical trials;
regulatory filings or approvals; patent application or issuance; manufacturing or process development; sales or net sales; market
share; market penetration; economic value added; customer service; customer satisfaction; inventory control; balance of cash, cash
equivalents and marketable securities; growth in assets; key hires; employee satisfaction; employee retention; business expansion;
acquisitions, divestitures, joint ventures; capital or fund raising to support operations; government grants; license arrangements;
collaboration or customer agreements or arrangements; legal compliance or safety and risk reduction; or such other measures as
determined by the Administrator consistent with these performance measures.

 

“Performance Shares” means
a grant of stock or stock Units the issuance, vesting or payment of which is contingent on performance as measured against predetermined
objectives over a specified Performance Period.

 

“Performance Units” means
a grant of dollar-denominated Units the value, vesting or payment of which is contingent on performance against predetermined objectives
over a specified Performance Period.

 

“Plan” means this Amended
and Restated CytoSorbents Corporation 2014 Long-Term Incentive Plan, as set forth herein and as it may be amended from time to
time.

 

“Qualified Performance-Based Award”
means an Award intended to qualify for the Section 162(m) Exemption, as provided in Section 7(j).

 

    	 	20	 

     

    

 

 

“Restricted Stock” means
an Award of shares of Common Stock to a Participant that may be subject to certain transferability and other restrictions and to
a risk of forfeiture (including by reason of not satisfying certain Performance Goals).

 

“Restricted Stock Unit”
means a right granted to a Participant to receive shares of Common Stock or cash at the end of a specified deferral period, which
right may be conditioned on the satisfaction of certain requirements (including the satisfaction of certain Performance Goals).

 

“Restriction Period” means,
with respect to Full Value Awards, the period commencing on the date of grant of such Award to which vesting or transferability
and other restrictions and a risk of forfeiture apply and ending upon the expiration of the applicable vesting conditions, transferability
and other restrictions and lapse of risk of forfeiture and/or the achievement of the applicable Performance Goals (it being understood
that the Administrator may provide that vesting shall occur and/or restrictions shall lapse with respect to portions of the applicable
Award during the Restriction Period.

 

“Section 162(m) Exemption”
means the exemption from the limitation on deductibility imposed by Section 162(m) of the Code that is set forth in Section 162(m)(4)(C)
of the Code.

 

“Subsidiary” means any
corporation or other entity in an unbroken chain of corporations or other entities beginning with CytoSorbents if each of the corporations
or other entities, or group of commonly controlled corporations or other entities, other than the last corporation or other entity
in the unbroken chain then owns stock or other equity interests possessing 50% or more of the total combined voting power of all
classes of stock or other equity interests in one of the other corporations or other entities in such chain or otherwise has the
power to direct the management and policies of the entity by contract or by means of appointing a majority of the members of the
board or other body that controls the affairs of the entity; provided, however, that solely for purposes of determining
whether a Participant has a Termination of Service that is a “separation from service” within the meaning of Section
409A of the Code or whether an Eligible Individual is eligible to be granted an Award that in the hands of such Eligible Individual
would constitute a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Code, a “Subsidiary”
of a corporation or other entity means all other entities with which such corporation or other entity would be considered a single
employer under Sections 414(b) or 414(c) of the Code.

 

“Tax Withholding Obligation”
means any federal, state, local or foreign (non-United States) income, employment or other tax or social insurance contribution
required by applicable law to be withheld in respect of Awards.

 

“Termination of Service”
means the termination of the Participant’s employment or consultancy with, or performance of services for, CytoSorbents and
its Subsidiaries. Temporary absences from employment because of illness, vacation or leave of absence and transfers among CytoSorbents
and its Subsidiaries shall not be considered Terminations of Service. With respect to any Award that constitutes a “nonqualified
deferred compensation plan” within the meaning of Section 409A of the Code, “Termination of Service” shall mean
a “separation from service” as defined under Section 409A of the Code to the extent required by Section 409A of the
Code to avoid the imposition of any tax or interest or the inclusion of any amount in income pursuant to Section 409A of the Code.
A Participant has a separation from service within the meaning of Section 409A of the Code if the Participant terminates employment
with CytoSorbents and all Subsidiaries for any reason. A Participant will generally be treated as having terminated employment
with CytoSorbents and all Subsidiaries as of a certain date if the Participant and the entity that employs the Participant reasonably
anticipate that the Participant will perform no further services for CytoSorbents or any Subsidiary after such date or that the
level of bona fide services that the Participant will perform after such date (whether as an employee or an independent contractor)
will permanently decrease to no more than 20 percent (20%) of the average level of bona fide services performed (whether as an
employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services if the Participant
has been providing services for fewer than 36 months); provided, however, that the employment relationship is treated as
continuing while the Participant is on military leave, sick leave or other bona fide leave of absence if the period of leave does
not exceed six months or, if longer, so long as the Participant retains the right to reemployment with CytoSorbents or any Subsidiary.

 

    	 	21	 

     

    

 

 

“Total and Permanent Disability”
means, with respect to a Participant, except as otherwise provided in the relevant Award Agreement, that a Participant is (i) unable
to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be
expected to last until the Participant’s death or result in death, or (ii) determined to be totally disabled by the Social
Security Administration or other governmental or quasi-governmental body that administers a comparable social insurance program
outside of the United States in which the Participant participates and which conditions the right to receive benefits under such
program on the Participant being unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment that can be expected to last until the Participant’s death or result in death. The Administrator shall
have sole authority to determine whether a Participant has suffered a Total and Permanent Disability and may require such medical
or other evidence as it deems necessary to judge the nature and permanency of the Participant’s condition.

 

“Unit” means a bookkeeping
entry used by CytoSorbents to record and account for the grant of the following types of Awards until such time as the Award is
paid, cancelled, forfeited or terminated, as the case may be: stock units, Restricted Stock Units, Performance Units, and Performance
Shares that are expressed in terms of units of Common Stock.

 

{end of document}

 

 

    	 	22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]