Document:

Exhibit 10.18

		

			Exhibit 10.18

		

			
					
						SWS GROUP, INC. 2012 RESTRICTED STOCK PLAN

				
	
					
						–AWARD AGREEMENT FOR EMPLOYEES (AUGUST 2014)

				
	
					
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			 SWS GROUP, INC. 2012 RESTRICTED STOCK PLAN
		

		
			RESTRICTED STOCK AGREEMENT
FOR EMPLOYEES (AUGUST 2014)
		

			
					
						 

					
					
						 

				
	
					
						Grantee:

					
					
						

				
	
					
						Address:

					
					
						

				
	
					
						 

					
					
						

				
	
					
						Number of Awarded Shares:

					
					
						

				
	
					
						Date of Grant:

					
					
						August 20, 2014

				

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Vesting of Awarded Shares:

					
					
						Date

					
					
						No. Shares

					
					
						Vested %

				
	
					
						 

					
					
						August 20, 2015

					
					
						 

					
					
						331⁄3%

				
	
					
						 

					
					
						August 20, 2016

					
					
						 

					
					
						331⁄3%

				
	
					
						 

					
					
						August 20, 2017

					
					
						 

					
					
						331⁄3%

				
	
					
						Total

					
					
						 

					
					
						 

					
					
						100%

				

		
			 
		

		
			SWS Group, Inc., a Delaware corporation (the "Company"), hereby grants to the individual whose name appears above ("Grantee"), pursuant to the provisions of the SWS Group, Inc. 2012 Restricted Stock Plan, as amended from time to time in accordance with its terms (the "Plan"), a restricted stock award (this "Award") of shares (the "Awarded Shares") of its common stock, par value $0.10 per share (the "Common Stock"), effective as of the date of grant as set forth above (the "Grant Date"), upon and subject to the terms and conditions set forth in this Restricted Stock Agreement (this "Agreement") and in the Plan, which are incorporated herein by reference.  Unless otherwise defined in this Agreement, capitalized terms used in this Agreement shall have the meanings assigned to them in the Plan. 
		

			
	
			
				 1.
			EFFECT OF THE PLAN.  The Awarded Shares granted to Grantee are subject to all of the provisions of the Plan and of this Agreement, together with all rules and determinations from time to time issued by the Committee and by the Board pursuant to the Plan.  The Company hereby reserves the right to amend, modify, restate, supplement or terminate the Plan without the consent of Grantee, so long as such amendment, modification, restatement or supplement shall not materially reduce the rights and benefits available to Grantee hereunder, and this Award shall be subject, without further action by the Company or Grantee, to such amendment, modification, restatement or supplement unless provided otherwise therein.

			
	
			
				 2.
			GRANT.  This Award shall evidence Grantee's ownership of the Awarded Shares.  Grantee agrees that the Awarded Shares shall be subject to all of the terms and conditions set forth in this Agreement and the Plan, including, but not limited to, the forfeiture conditions set forth in Section 4 of this Agreement, the restrictions on transfer set forth in Section 5 of this 
		

		 

		

			 

		

		

			 

		

 

		

			 

		

			Agreement and the satisfaction of the Required Withholding as set forth in Section 9(a) of this Agreement.  Grantee acknowledges that he or she will not receive a stock certificate representing the Awarded Shares unless and until the Awarded Shares vest as provided in this Award and all tax withholding obligations applicable to the Vested Awarded Shares (as defined below) have been satisfied.  The Awarded Shares will be held in custody for Grantee, by the Company or in a book entry account with the Company's transfer agent, until the Awarded Shares have vested in accordance with Section 3 of this Agreement.  Upon vesting of the Awarded Shares, the Company shall, unless otherwise paid by Grantee as described in Section 9(a) of this Agreement, withhold that number of Vested Awarded Shares necessary to satisfy any applicable tax withholding obligation of Grantee in accordance with the provisions of Section 9(a) of this Agreement, and thereafter shall deliver or shall instruct its transfer agent to deliver to Grantee all remaining Vested Awarded Shares (as defined below).

			
	
			
				 3.
			VESTING SCHEDULE; SERVICE REQUIREMENT.  

			
	
			
				 (a)
			Except as provided otherwise below, the Awarded Shares shall vest if Grantee does not experience a Termination of Service during the period commencing with the Grant Date and ending with the applicable date that such portion of the Awarded Shares vests (each, a "Vesting Date").  Awarded Shares that have vested pursuant to this Agreement are referred to herein as "Vested Awarded Shares" and Awarded Shares that have not yet vested pursuant to this Agreement are referred to herein as "Unvested Awarded Shares."  Subject to the provisions of Section 4 of this Agreement, if Grantee does not experience a Termination of Service prior to an applicable Vesting Date, thirty three and one-third percent (331⁄3%) of the Awarded Shares will vest on the first Vesting Date; an additional thirty three and one-third percent (331⁄3%) of the Awarded Shares will vest on the second Vesting Date; and the remaining thirty three and one-third percent (331⁄3%) of the Awarded Shares will vest on the final Vesting Date, all as set forth on the first page of this Agreement under the heading "Vesting of Awarded Shares."  If an installment of the vesting would result in a fractional Vested Awarded Share, such installment will be rounded to the next higher or lower Awarded Share, as determined by the Company, except the final installment, which will be for the balance of the Awarded Shares. 

			
	
			
				 (b)
			Notwithstanding anything to the contrary in this Agreement, (i) a  prorated portion of the Unvested Awarded Shares shall become Vested Awarded Shares on the death of Grantee or upon Grantee’s Disability (as defined in Section 3(c) of this Agreement), in each case, while Grantee is still an Employee, with such proration determined by multiplying the total number of Unvested Awarded Shares by a fraction, the numerator of which is the number of months from the previous Vesting Date (or the Grant Date if the termination occurs prior to the first Vesting Date) that the Grantee was an Employee, including the full month in which the Grantee’s death or Disability occurs, and the denominator of which is the number of months from the previous Vesting Date (or the Grant Date, if the termination occurs prior to the first Vesting Date) until August 20, 2017, with any Awarded Shares that do not become Vested Awarded Shares hereunder forfeited without any action by Grantee or payment by the Company, (ii) the Unvested Awarded Shares shall become fully vested on Grantee’s Termination of Service due to termination by the Company without Cause (as defined in Section 3(d) of this Agreement) at any time following the Merger (as defined in Section 3(e) of this Agreement),  (iii) the Unvested Awarded Shares shall become fully vested, in accordance with the provisions of Article 7 of the Plan, in the event of a Change in Control (other than the Merger), or (iv)  following the Merger 
		

		 

		

			 

		

		

			SWS GROUP, INC. 2012 RESTRICTED STOCK PLAN                                                                                                                                                                Page  2

		

		

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			or, if the Merger Agreement (as defined in Section 3(e) of this Agreement) is terminated without the consummation of the Merger in accordance with its terms,  the Unvested Awarded Shares shall become fully vested at any time at the direction and sole discretion of the Committee, vested in full or in part.

			
	
			
				 (c)
			“Disability” means a permanent disability within the meaning of Section 22(e)(3) of the Code, excluding, for purposes of this definition, the last sentence thereof.

			
	
			
				 (d)
			“Cause” means, with respect to Grantee, (i) plea of guilty or nolo contendere to a charge or commission of a felony or a crime requiring intent or involving moral turpitude; (ii) misappropriating or embezzling funds of (A) the Company or any of its affiliates or (B) a client or customer of the Company or any of its affiliates that are under the control of the Company or any such affiliate; (iii) intentionally pursuing interests of, or for the benefit of, a competitor to the detriment of the financial interests of the Company or its affiliates; (iv) willful failure or refusal to perform employment duties assigned to him or her by the Company; (v) gross negligence or willful misconduct in connection with the performance by Grantee of his or her duties and services as a service provider of the Company or its affiliates;  (vi) forfeiture or suspension of any license or certificate necessary for the performance of his or her duties; (vii) involvement in impermissible employment discrimination or failure to adhere to other material policies of the Company or its affiliates, including any code of conduct, as determined by the Company; or (viii) material breach of any obligations under a restrictive covenant agreement with the Company or its affiliates; provided that, other than in the case of the events described under clauses (i) and (ii), the Company shall provide Grantee with written notice specifying the circumstances alleged to constitute Cause, and, to the extent subject to cure, Grantee shall have 30 days following receipt of such notice to cure such circumstances to the Company’s reasonable satisfaction. 

			
	
			
				 (e)
			“Merger” means the consummation of the transactions contemplated by the Agreement and Plan of Merger, dated as of March 31, 2014, as may be amended from time to time, by and among the Company, Hilltop Holdings Inc., a Maryland corporation (“Hilltop”), and Peruna LLC, a Delaware limited liability company (the “Merger Agreement”).

			
	
			
				 4.
			CONDITIONS OF FORFEITURE.  Upon Grantee's Termination of Service (the "Termination Date") for any or no reason (other than due to Grantee's death or, following the Merger, termination by the Company without Cause), including but not limited to Grantee's voluntary resignation or termination by the Company with Cause at any time or, prior to the Merger, by the Company without Cause, before all of the Awarded Shares become Vested Awarded Shares, all Unvested Awarded Shares as of the Termination Date shall, without further action of any kind by the Company or Grantee, be forfeited.  Unvested Awarded Shares that are forfeited shall be deemed to be immediately transferred to the Company without any payment by the Company or action by Grantee, and the Company shall have the full right to cancel any evidence of Grantee's ownership of such forfeited Unvested Awarded Shares and to take any other action necessary to demonstrate that Grantee no longer owns such forfeited Unvested Awarded Shares automatically upon such forfeiture.  Following such forfeiture, Grantee shall have no further rights with respect to such forfeited Unvested Awarded Shares.  Grantee, by his acceptance of the Award granted pursuant to this Agreement, irrevocably grants to the Company a power of attorney to transfer Unvested Awarded Shares that are forfeited to the Company and 
		

		 

		

			 

		

		

			SWS GROUP, INC. 2012 RESTRICTED STOCK PLAN                                                                                                                                                                Page  3

		

		

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			agrees to execute any documents requested by the Company in connection with such forfeiture and transfer.  The provisions of this Agreement regarding transfers of Unvested Awarded Shares that are forfeited shall be specifically performable by the Company in a court of equity or law.

			
	
			
				 5.
			NON‐TRANSFERABILITY.  Grantee may not sell, transfer, pledge, exchange, hypothecate, or otherwise encumber or dispose of any of the Unvested Awarded Shares, or any right or interest therein, by operation of law or otherwise, except only with respect to a transfer of title effected pursuant to Grantee's will or the laws of descent and distribution following Grantee's death.  References to Grantee, to the extent relevant in the context, shall include references to authorized transferees.  Any transfer in violation of this Section 5 shall be void and of no force or effect, and shall result in the immediate forfeiture of all Unvested Awarded Shares.

			
	
			
				 6.
			DIVIDEND AND VOTING RIGHTS.  Subject to the restrictions contained in this Agreement, Grantee shall have the rights of a stockholder with respect to the Awarded Shares, including the right to vote all such Awarded Shares, including Unvested Awarded Shares, and to receive all dividends, cash or stock, paid or delivered thereon, from and after the date hereof.  In the event of forfeiture of Unvested Awarded Shares, Grantee shall have no further rights with respect to such Unvested Awarded Shares.  However, the forfeiture of the Unvested Awarded Shares pursuant to Section 4 hereof shall not create any obligation to repay cash dividends received as to such Unvested Awarded Shares, nor shall such forfeiture invalidate any votes given by Grantee with respect to such Unvested Awarded Shares prior to forfeiture.

			
	
			
				 7.
			CAPITAL ADJUSTMENTS; CORPORATE EVENTS;  THE MERGER.  

			
	
			
				 (a)
			If, from time to time during the term of this Agreement, there is any capital adjustment affecting the outstanding Common Stock as a class without the Company's receipt of consideration, the Unvested Awarded Shares shall be adjusted in accordance with the provisions of Article 10 of the Plan.  Any and all new, substituted or additional securities to which Grantee may be entitled by reason of Grantee's ownership of the Unvested Awarded Shares hereunder because of a capital adjustment shall be immediately subject to the forfeiture provisions of this Agreement and included thereafter as "Unvested Awarded Shares" for purposes of this Agreement.

			
	
			
				 (b)
			Without limiting Section 7(a) above, upon the Merger and without any further action on the part of Grantee or the Company, the Awarded Shares shall be converted into the number of shares of common stock, par value $0.01 per share, of Hilltop (“Hilltop Shares”), equal to the product of (i) the number of Awarded Shares multiplied by  (ii) the Exchange Ratio,  with the number of Hilltop Shares to be rounded to the nearest whole Hilltop Share.   “Exchange Ratio” means the sum of (A) the Per Share Stock Consideration plus (y) the quotient of (x) the Per Share Cash Consideration divided by (y) the Purchaser Closing Price (rounded to the nearest one ten thousandth).  “Per Share Stock Consideration,” “Per Share Cash Consideration” and “Purchaser Closing Price” have the meanings assigned to them in the Merger Agreement. 

			
	
			
				 8.
			REFUSAL TO TRANSFER.  The Company shall not be required (a) to transfer on its books any Unvested Awarded Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or the Plan, or (b) to treat as owner of such Unvested Awarded Shares, or accord the right to vote or pay or deliver dividends or other 
		

		 

		

			 

		

		

			SWS GROUP, INC. 2012 RESTRICTED STOCK PLAN                                                                                                                                                                Page  4

		

		

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			distributions to, any purchaser or other transferee to whom or which such Unvested Awarded Shares shall have been so transferred.

			
	
			
				 9.
			TAX MATTERS.

			
	
			
				 (a)
			The Company's obligation to deliver Awarded Shares to Grantee upon the vesting of such shares shall be subject to the satisfaction of all applicable federal, state and local income and employment tax withholding requirements (the "Required Withholding").  If the Company has not received from Grantee a certified check or money order for the full amount of the Required Withholding by 5:00 P.M. Central Standard Time on the date Awarded Shares become Vested Awarded Shares, the Company shall withhold from the Vested Awarded Shares that otherwise would have been delivered to Grantee a number of Vested Awarded Shares necessary to satisfy Grantee's Required Withholding, and deliver the remaining Vested Awarded Shares to Grantee.  The amount of the Required Withholding and the number of Vested Awarded Shares to be withheld by the Company, if applicable, to satisfy Grantee's Required Withholding, as well as the amount reflected on tax reports filed by the Company, shall be based on the value of the Vested Awarded Shares as of 12:01 A.M. Central Standard Time on the applicable Vesting Date.  The obligations of the Company under this Award will be conditioned on such satisfaction of the Required Withholding.

			
	
			
				 (b)
			Grantee acknowledges that the tax consequences associated with the award are complex and that the Company has urged Grantee to review with Grantee's own tax advisors the federal, state, and local tax consequences of this Award.  Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  Grantee understands that Grantee (and not the Company) shall be responsible for Grantee's own tax liability that may arise as a result of the Award.  Grantee understands further that Section 83 of the Internal Revenue Code of 1986, as amended (the "Code"), taxes as ordinary income the fair market value of the Awarded Shares as of the Vesting Date.  Grantee also understands that Grantee may elect to be taxed at the Grant Date rather than at the time the Awarded Shares vest by filing an election under Section 83(b) of the Code with the Internal Revenue Service and by providing a copy of the election to the Company.  GRANTEE ACKNOWLEDGES THAT HE OR SHE HAS BEEN INFORMED OF THE AVAILABILITY OF MAKING AN ELECTION IN ACCORDANCE WITH SECTION 83(b) OF THE CODE; THAT SUCH ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE (AND A COPY OF THE ELECTION GIVEN TO THE COMPANY) WITHIN THIRTY (30) DAYS OF THE GRANT DATE OF AWARDED SHARES TO GRANTEE; AND THAT GRANTEE IS SOLELY RESPONSIBLE FOR MAKING SUCH ELECTION.

			
	
			
				 10.
			ENTIRE AGREEMENT; GOVERNING LAW.  The Plan and this Agreement constitute the entire agreement of the Company and Grantee (collectively, the "Parties") with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Parties with respect to the subject matter hereof.  If there is any inconsistency between the provisions of this Agreement and of the Plan, the provisions of the Plan shall govern.  Nothing in the Plan and this Agreement (except as expressly provided therein or herein) is intended to confer any rights or remedies on any person other than the Parties.  The Plan and this Agreement are to be construed in accordance with and governed by the internal laws of the State of Texas, without giving effect to any choice‐of‐law or conflict of law rules that would 
		

		 

		

			 

		

		

			SWS GROUP, INC. 2012 RESTRICTED STOCK PLAN                                                                                                                                                                Page  5

		

		

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			cause the application of the laws of any jurisdiction other than the internal laws of the State of Texas to the rights and duties of the Parties.  The Parties waive application of any choice-of-law or conflict of law rules and agree that any such rules should not be applied to any dispute arising out of related to this Agreement.  Should any provision of the Plan or this Agreement relating to the Awarded Shares be determined by a court of law to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain effective and shall remain enforceable.

			
	
			
				 11.
			INTERPRETIVE MATTERS.  Whenever required by the context, pronouns and any variation thereof shall be deemed to refer to the masculine, feminine, or neuter, and the singular shall include the plural, and vice versa.  The term "include" or "including" does not denote or imply any limitation.  The captions and headings used in this Agreement are inserted for convenience and shall not be deemed a part of the Award or this Agreement for construction or interpretation.    

			
	
			
				 12.
			DISPUTE RESOLUTION.  The provisions of this Section 12 shall be the exclusive means of resolving disputes of the Parties (including any other persons claiming any rights or having any obligations through the Company or Grantee) arising out of or relating to the Plan and this Agreement.  The Parties shall attempt in good faith to resolve any disputes arising out of or relating to the Plan and this Agreement by negotiation between individuals who have authority to settle the controversy.  Negotiations shall be commenced by either Party by a written statement of the Party's position and the name and title of the individual who will represent the Party.  Within thirty (30) days of the written notification, the Parties shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to resolve the dispute.  If the dispute has not been resolved by negotiation within ninety (90) days of the written notification of the dispute, then, to the extent applicable, resolution of the dispute, shall be determined by arbitration.  Any arbitration under this Agreement shall be conducted pursuant to the federal arbitration act before the Financial Industry Regulatory Authority, Inc. or the Municipal Securities Rulemaking Board and in accordance with the rules then prevailing at the selected organization.  Grantee may elect in the first instance whether arbitration shall be by the Financial Industry Regulatory Authority, Inc. or the Municipal Securities Rulemaking Board, but if Grantee fails to make such election, by registered letter or telegram addressed to the Company at the Company's main office, before the expiration of ten (10) days after receipt of a written request from the Company to make such election, then the Company may make such election.  The arbitration award shall be final, and judgment upon the award rendered may be entered in any court, state or federal, having jurisdiction.  Further, neither of the Parties nor any other person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; (ii) the class is decertified; or (iii) the customer is excluded from the class by the court.  Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Agreement except to the extent stated herein.  Arbitration shall be final and binding on the Parties.  The Parties are waiving their right to seek remedies in court, including the right to jury trial.  Pre-arbitration discovery is generally more limited than, and different from, court proceedings.  The arbitrators' award is not required to include factual findings or legal reasoning and a Party's right to appeal or seek modification of rulings by the arbitrators is strictly limited.  
		

		 

		

			 

		

		

			SWS GROUP, INC. 2012 RESTRICTED STOCK PLAN                                                                                                                                                                Page  6

		

		

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			The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.  If such arbitration provision is found inapplicable, then either Party may file suit and each Party agrees that any suit, action, or proceeding arising out of or relating to the Plan or this Agreement shall be brought in the United States District Court for the Northern District of Texas (or should such court lack jurisdiction to hear such action, suit or proceeding, in a Texas state court in Dallas County, Texas) and that the Parties shall submit to the jurisdiction of such court and agree that such courts have personal and subject matter jurisdiction over the Parties in relation to any dispute arising out of or related to this Agreement.  The Parties irrevocably waive, to the fullest extent permitted by law, any objection a Party may have to the laying of venue for and/or the jurisdiction of any such suit, action or proceeding brought in such court.  THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING.  If any one or more provisions of this Section 12 shall for any reason be held invalid or unenforceable, it is the specific intent of the Parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.  Nothing in this Section 12 prevents the Company or any of its assigns from seeking injunctive or other equitable relief against Grantee in any court of competent jurisdiction at any time and without participating in, or completing, any process described in this Section 12.

			
	
			
				 13.
			NATURE OF PAYMENTS.  Any and all grants or deliveries of Awarded Shares hereunder shall constitute special incentive payments to Grantee and shall not be taken into account in computing the amount of salary or compensation of Grantee for the purpose of determining any retirement, death or other benefits under (a) any retirement, bonus, life insurance or other employee benefit plan of the Company, or (b) any agreement between the Company and Grantee, except as such plan or agreement shall otherwise expressly provide.

			
	
			
				 14.
			NON‐SOLICITATION.  Grantee recognizes and agrees that: (a) prior to Grantee’s employment with Company or any Subsidiary,  Grantee had no substantive business or other relationships with any employees of the Company or any Subsidiary; (b) the Company or any Subsidiary has devoted a considerable amount of time, effort, training and expense to develop its employees and its relationships with its employees; (c) the Company’s or any Subsidiary’s business goodwill is a valuable asset to the Company and gives the Company a competitive advantage over others who do not have such goodwill; and (d) any damage to the Company’s business goodwill would cause irreparable harm to the Company for which there is no adequate remedy at law.  Thus, in exchange for the grant of this Award, Grantee hereby agrees that during Grantee's employment with the Company or any Subsidiary and for one year thereafter, Grantee shall not hire, solicit for employment, induce or encourage to leave the employment of the Company or any Subsidiary, on behalf of Grantee or any other person or entity, any person who is an employee of the Company or any Subsidiary.  If Grantee engages in any of the conduct prohibited by this Section 14, Grantee hereby agrees to pay the Company or the affected Subsidiary $50,000 for each such employee that leaves the employ of the Company or a Subsidiary within thirty (30) days after such employee leaves the employ of the Company or a Subsidiary.  The Parties agree that this amount is reasonable based on the difficulty of calculating damages as a result of the breach of this Section 14 and does not constitute a penalty.  The Parties further agree that the payment by Grantee of this amount does not prohibit Company from pursuing any other remedies available to it for any breach of this Section 14, including, 
		

		 

		

			 

		

		

			SWS GROUP, INC. 2012 RESTRICTED STOCK PLAN                                                                                                                                                                Page  7

		

		

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			without limitation, injunctive or other equitable relief, lost profits or other monetary damages, attorneys’ fees, costs and/or interest.  

			
	
			
				 15.
			PAYMENT OF PAR VALUE.  In connection with the issuance of the Awarded Shares pursuant to this Agreement, the Board has determined that the Company has received consideration of not less than the aggregate par value of the Awarded Shares in the form of past services rendered by Grantee to the Company and/or one or more Subsidiaries.  Notwithstanding the foregoing, if Grantee is a newly hired Employee and the Award is made in connection with Grantee's commencement of employment, the requirement that the Company receive adequate consideration of not less than the aggregate par value of the Awarded Shares shall be waived and the Awarded Shares issued pursuant to this Agreement shall be made solely from shares of Common Stock held by the Company in its treasury.

			
	
			
				 16.
			SPECIFIC PERFORMANCE.  The Parties acknowledge that remedies at law will be inadequate remedies for breach of this Agreement and consequently agree that this Agreement shall be enforceable by specific performance.  The remedy of specific performance shall be cumulative of all of the rights and remedies at law or in equity of the parties under this Agreement.

			
	
			
				 17.
			GRANTEE’S REPRESENTATIONS.  Notwithstanding any of the provisions hereof, Grantee hereby agrees that he or she will not acquire any Awarded Shares, and that the Company will not be obligated to issue any Awarded Shares to Grantee hereunder, if the issuance of such shares shall constitute a violation by Grantee or the Company of any provision of any law or regulation of any governmental authority.  Any determination in this connection by the Company shall be final, binding, and conclusive.  The rights and obligations of the Company and the rights and obligations of Grantee are subject to all applicable laws, rules, and regulations.

			
	
			
				 18.
			AMENDMENT; WAIVER.  This Agreement may be amended or modified only by means of a written document or documents signed by the Company and Grantee.  Any provision for the benefit of the Company contained in this Agreement may be waived, either generally or in any particular instance, by the Board or by the Committee.  A waiver on one occasion shall not be deemed to be a waiver of the same or any other breach on a future occasion.

			
	
			
				 19.
			NOTICE.  Any notice or other communication required or permitted hereunder shall be given in writing and shall be deemed given, effective, and received upon prepaid delivery in person or by courier or upon the earlier of delivery or the third business day after deposit in the United States mail if sent by certified mail, with postage and fees prepaid, addressed to the other Party at its address as shown beneath its signature in this Agreement, or to such other address as such Party may designate in writing from time to time by notice to the other Party in accordance with this Section 19.

		
			[Signature page follows.]
		

		

		

		 

		

			 

		

		

			SWS GROUP, INC. 2012 RESTRICTED STOCK PLAN                                                                                                                                                                Page  8

		

		

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		THE COMPANY HAS CAUSED THIS AGREEMENT TO BE EXECUTED BY ITS DULY AUTHORIZED OFFICER, EFFECTIVE AS OF THE GRANT DATE SPECIFIED ABOVE.
		

		
			SWS GROUP, INC.
		

		
			By:
		

		
			Name:
		

		
			Title:
		

		
			Address:
		

		
			
		

		
			GRANTEE, TO EVIDENCE HIS OR HER CONSENT AND APPROVAL OF THE TERMS HEREOF, HAS EXECUTED THIS AGREEMENT, AS OF THE DATE SPECIFIED BELOW.  GRANTEE ACKNOWLEDGES AND AGREES THAT THE AWARDED SHARES SUBJECT TO THIS AWARD SHALL VEST AND THE FORFEITURE RESTRICTIONS SHALL LAPSE, IF AT ALL, ONLY DURING THE PERIOD OF GRANTEE'S EMPLOYMENT OR AS OTHERWISE PROVIDED IN THIS AGREEMENT (NOT THROUGH THE ACT OF BEING GRANTED THE AWARD).  GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT OR THE PLAN SHALL CONFER UPON GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF GRANTEE'S EMPLOYMENT.  Grantee acknowledges receipt of a copy of the Plan, represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Restricted Stock Award subject to all of the terms and provisions hereof and thereof.  Grantee has reviewed this Agreement and the Plan in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement, and fully understands all provisions of this Agreement and the Plan.  Grantee hereby agrees that all disputes arising out of or relating to this Agreement and the Plan shall be resolved in accordance with Section 12 of this Agreement.  Grantee further agrees to notify the Company upon any change in the address for notice indicated in this Agreement.
		

		
			DATED:  SIGNED:
GRANTEE
		

		
			Address:
		

		
			
		

		
			 
		

		
			 
		

		 

		

			 

		

		

			SWS GROUP, INC. 2012 RESTRICTED STOCK PLAN                                                                                                                                                                Page  9

		

		

			–AWARD AGREEMENT FOR EMPLOYEES (AUGUST 2014)

		

		

			#86240894v6CryoPort, Inc. 

 

 

 

2011 Stock Incentive Plan

 

(as amended and restated August 29, 2014)

 

 

 

 

 

 

 

    	 

    	 

    

 

CryoPort, Inc.

2011 Stock Incentive Plan

(as amended and restated August 29, 2014)

 

ARTICLE
1

ESTABLISHMENT, PURPOSE, EFFECTIVE DATE, AND EXPIRATION DATE

 

1.1 Purpose.
The purpose of the CryoPort, Inc. 2011 Stock Incentive Plan (the “Plan”) is to promote the interests and long-term
success of the Company and its stockholders by providing an incentive to attract, retain and reward persons performing services
for the Company and by motivating such persons to contribute to the continued growth and profitability of the Company. The Plan
seeks to achieve this purpose by providing Awards in the form of Options, Restricted Stock Rights, Restricted Stock, Performance
Shares, Performance Share Units, Performance Cash Awards, Stock Appreciation Rights and Stock Grant Awards. The Plan also permits
the grant of awards that qualify for the “performance-based compensation” exception to the limitations on the deduction
of compensation imposed by Section 162(m) of the Code.

 

1.2 Effective
Date. The Plan was adopted by the Board of Directors on July 19, 2011 and the Plan will be effective on the date it
is approved by the Company’s stockholders at the Company’s 2011 Annual Meeting (the “Effective Date”).

 

1.3 Expiration
Date. The Plan will expire on, and no Award may be granted under the Plan after, the tenth (10) anniversary of the
Effective Date unless the stockholders of the Company vote to approve an extension of the Plan prior to such expiration date. Any
Awards that are outstanding on the tenth anniversary of the Effective Date (or such later expiration date as approved by the Company’s
stockholders) shall remain in force according to the terms of the Plan and the Award Agreement.

 

ARTICLE 2

 

DEFINITIONS

 

2.1 Definitions.
When a word or phrase appears in this Plan document with the initial letter capitalized, and the word or phrase does not commence
a sentence, the word or phrase will generally be given the meaning ascribed to it in this Section 2.1 unless a clearly different
meaning is required by the context. The following words and phrases will have the following meanings:

 

(a) “Affiliate”
means: (i) any member of a “controlled group of corporations” (within the meaning of Section 414(b) of the
Code as modified by Section 415(h) of the Code) that includes the Company as a member of the group; and (ii) any member of
a group of trades or businesses under common control (within the meaning of Section 414(c) of the Code as modified by Section 415(h)
of the Code) that includes the Company as a member of the group. In applying Section 1563(a)(1), (2) and (3) of the Code
for purposes of determining the members of a controlled group of corporations under Section 414(b) of the Code, the language “at
least 50 percent” shall be used instead of “at least 80 percent” each place it appears in Section 1563(a)(1),
(2) and (3) and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining the members
of a group of trades or businesses (whether or not incorporated) that are under common control for purposes of Section 414(c) of
the Code, the language “at least 50 percent” shall be used instead of “at least 80 percent” each
place it appears in Treasury Regulation Section 1.414(c)-2.

 

    	 

    	 

    

 

(b) “Annual
Meeting” or “Annual Meeting Date” means the dates established for the annual meetings of the Company’s
stockholders pursuant to the Company’s Bylaws.

 

(c) “Award”
means any Option, Restricted Stock Right, Restricted Stock, Performance Share, Performance Share Unit, Performance Cash, Stock
Appreciation Right or Stock Grant Award granted pursuant to the Plan.

 

(d) “Award
Agreement” means any written agreement or other document evidencing an Award.

 

(e) “Board”
means the Board of Directors of the Company, as constituted from time to time.

(f) “Cause”
means any of the following:

 

(i) Gross
and willful misconduct which results in material injury to the Company; or

 

(ii) Engaging
in fraudulent conduct with respect to the Company’s or any of its Affiliates’ business or conduct of a criminal nature
that may have an adverse impact on the Company’s or any of its Affiliates’ standing and reputation; or

 

(iii) The
material failure or refusal of a Participant to perform the duties required of the Participant by the Board, which inappropriate
failure or refusal is not cured within 30 days following receipt, by Participant, of written notice from the Board specifying
the factors or events constituting such failure or refusal; or

 

(iv) The
use of drugs and/or alcohol in violation of the Company’s then current Company policies.

 

(g) “Chief
Executive Officer” or “CEO” means the Chief Executive Officer of the Company.

 

(h) “Change
in Control” means any one or more of the following events:

 

(i) The
date that any one person, or more than one person acting as a group (as determined in accordance with Treasury Regulation Section 1.409A-3(i)(5)),
acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50% of
the total fair market value or total voting power of the stock of the Company. If any one person or more than one person acting
as a group is considered to own more than 50% of the total fair market value or total voting power of the stock of the Company,
the acquisition of additional stock by the same person or persons will not be considered to be a “Change of Control.”
This paragraph (i) only applies when there is a transfer of stock of the Company (or issuance of stock of the Company) and
stock in the Company remains outstanding after the transaction;

 

(ii) The
date that any one person, or more than one person acting as a group (as determined in accordance with Treasury Regulation Section 1.409A-3(i)(5)),
acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons)
assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value
of all of the assets of the Company immediately prior to such acquisition or acquisitions. For this purpose, “gross fair
market value” means the value of the assets of the Company, or the value of the assets being disposed of, determined without
regard to any liabilities associated with such assets; or

 

    	2

    	 

    

 

(iii) The
date that any person, or more than one person acting as a group (as determined in accordance with Treasury Regulation 1.409A-3(i)(5)),
acquires (or has acquired during the 12-month period ending on the most recent acquisition by such person or persons) ownership
of stock of Company possessing 30% or more of the total voting power of the stock of Company.

The transfer of stock
or assets of the Company in connection with a bankruptcy filing by or against the Company under Title 11 of the United States Code
will not be considered to be a Change of Control for purposes of this Plan. Additionally, a transaction shall not constitute a
Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company
that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before
such transaction.

 

(i) “Code”
means the Internal Revenue Code of 1986, as amended. All references to the Code shall be interpreted to include a reference
to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of the Code.

 

(j) “Committee”
means the Compensation Committee or any such committee as may be designated by the Board to administer the Plan, provided that
at all times the membership of such committee shall not be less than two (2) members of the Board. Each Committee member must
be: (i) a “non-employee director” (as defined in Rule 16b-3 under the Exchange Act) if required to meet the
conditions of exemption for the Awards under the Plan from Section 16(b) of the Exchange Act; and (ii) an “outside director”
as defined in Section 162(m) of the Code and the regulations issued thereunder.

 

(k) “Company”
means CryoPort, Inc., or any successor as provided in Section 20.4.

 

(l) “Consultant”
means a consultant or adviser who provides services to the Company or an Affiliate as an independent contractor and not as
an Employee; provided however that a Consultant may become Participant this Plan only if he or she (i) is a natural person,
(ii) provides bona fide services to the Company, and (iii) provides services that are not in connection with the offer
or sale of the Company’s securities in a capital-raising transaction and do not promote or maintain a market for the Company’s
securities.

 

(m) “Covered
Employee” means an Employee who is, or could be, a “covered employee” as defined by Section 162(m) of the
Code.

 

(n) “Disability”
means the inability of a Participant to engage in any substantially gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous
period of not less than twelve (12) months. The permanence and degree of impairment shall be supported by medical evidence.

 

(o) “Effective
Date” means the date on which the stockholders of the Company approve the Plan as described in Section 1.2.

 

(p) “Employee”
means a common-law employee of the Company or an Affiliate.

 

(q) “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended. All references to a section of ERISA shall be interpreted
to include a reference to any applicable regulations, rulings or other official guidance promulgated pursuant to such section of
ERISA.

 

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

 

    	3

    	 

    

 

(s) “Fair
Market Value” means the closing price of one share of Stock as reported on the OTC Markets or such other exchange on
which the Stock is traded on the date such value is determined. If the Stock is not traded on such date, the fair market value
is the price on the first immediately preceding business day on which Stock was so traded.

 

(t) “Good
Reason” means any of the following:

 

(i) A
material diminution by the Company of a Participant’s then existing base salary or incentive compensation opportunity; or

 

(ii) A
material diminution in a Participant’s authorities, duties and/or responsibilities so as to cause a Participant’s position
with the Company to become of materially less dignity, responsibility and/or importance than those associated with the Participant’s
functions, duties and/or responsibilities immediately prior to such reduction; or

 

(iii) The
Company’s decision to permanently relocate a Participant’s residence or the Company’s principal business office
by more than 60 miles from its then current location.

 

(u) “Grant
Date” means the date the Committee approves the Award or a date in the future on which the Committee determines the Award
will become effective.

 

(v) “Incentive
Stock Option” means an Option that is intended to meet the requirements of Section 422 of the Code or any successor
provision thereto.

 

(w) “Non-Qualified
Stock Option” means an Option that is not intended to be an Incentive Stock Option.

 

(x) “Option”
means the right to purchase Stock at a stated price for a specified period of time. An Option may either be an Incentive Stock
Option or a Non-Qualified Stock Option.

 

(y) “Participant”
means an individual who, as an Employee, officer or Non-Employee Director of, or Consultant to, the Company, or any Affiliate,
has been granted an Award under the Plan.

 

(z) “Performance-Based
Award” means an Award granted to select Covered Employees pursuant to Articles 7, 8 and 10 that is subject to the terms
and conditions set forth in Article 11. All Performance-Based Awards are intended to qualify as “performance-based compensation”
exempt from the deduction limitations imposed by Section 162(m) of the Code.

 

(aa) “Performance
Cash Award” means an Award evidencing the right to receive a payment in cash as determined by the Committee.

 

(bb) “Performance
Criteria” means the criteria or any combination of criteria, that the Committee selects for purposes of establishing
the Performance Goal or Performance Goals for a Participant during a Performance Period. The Performance Criteria that will be
used to establish Performance Goals are limited to the following: revenue; revenue growth; earnings (including earnings before
interest, taxes, depreciation and amortization); operating income; operating margin; pre- and after-tax income; cash flow (before
and after dividends); cash flow per share (before and after dividends); net earnings; earnings per share; return on equity; return
on capital (including return on total capital or return on invested capital); cash flow return on investment; return on assets
or net assets; economic value added; share price performance; total stockholder return; improvement in or attainment of expense
levels; improvement in or attainment of working capital levels; improvement in or attainment of working capital levels; market
penetration, geographic goals, business expansion goals, development of strategic relationships with customers and/or vendors;
and development and execution on strategic acquisitions. The Committee shall, within the time prescribed by Section 162(m) of the
Code, define in an objective fashion the manner of calculating the Performance Criteria it selects to use for a particular Performance
Period for a particular Participant.

 

    	4

    	 

    

 

(cc) “Performance
Goals” means the goal or goals established in writing by the Committee for a Performance Period based on the Performance
Criteria. Depending on the Performance Criteria used to establish Performance Goals, the Performance Goals may be expressed in
terms of overall Company performance, or the performance of a division, Affiliate, or an individual. The Performance Goals may
be stated in terms of absolute levels or relative to another company or companies or to an index or indices.

 

(dd) “Performance
Period” means one or more periods of time, which may be of varying and overlapping durations, as the Committee may select,
over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s
right to, and the payment of, a Performance-Based Award.

 

(ee) “Performance
Share” means a right granted to a Participant to receive a payment in the form of Stock, the payment of which is contingent
upon achieving certain performance goals established by the Committee.

 

(ff) “Performance
Share Unit” means a right granted to a Participant to receive a payment in the form of Stock, cash, or a combination
thereof, the payment of which is contingent upon achieving certain performance goals established by the Committee.

 

(gg) “Plan”
means the CryoPort, Inc. 2011 Stock Incentive Plan.

 

(hh) “Restricted
Period” means the period during which Restricted Stock, Restricted Stock Rights, Performance Shares, or Performance Share
Units are subject to restrictions pursuant to the relevant provisions of the Plan.

 

(ii) “Restricted
Stock” means Stock granted to a Participant pursuant to Article 7 that is subject to certain restrictions and to
the risk of forfeiture.

 

(jj) “Restricted
Stock Right” means the right granted to a Participant pursuant to Article 7 to receive cash or Stock in the future,
the payment of which is subject to certain restrictions and to the risk of forfeiture.

 

(kk) “Separation
from Service” means either: (i) the termination of a Participant’s employment with the Company and all Affiliates
due to death, retirement or other reasons; or (ii) a permanent reduction in the level of bona fide services the Participant
provides to the Company and all Affiliates to an amount that is 20% or less of the average level of bona fide services the Participant
provided to the Company and all Affiliates in the immediately preceding 36 months, with the level of bona fide service calculated
in accordance with Treasury Regulation Section 1.409A-1(h)(1)(ii).

 

Solely for purposes
of determining whether a Participant has a “Separation from Service,” a Participant’s 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 such leave does not exceed six months, or if longer, so long as the Participant’s right to reemployment with the Company
or an Affiliate is provided either by statute or contract). If the Participant’s period of leave exceeds six months and the
Participant’s right to reemployment is not provided either by statute or by contract, the employment relationship is deemed
to terminate on the first day immediately following the expiration of such six-month period. Whether a Termination of Employment
has occurred will be determined based on all of the facts and circumstances and in accordance with regulations issued by the United
States Treasury Department pursuant to Section 409A of the Code.

 

In the case of a Non-Employee
Director, Separation from Service means that such Director has ceased to be a member of the Board.

 

    	5

    	 

    

 

(ll) “Specified
Employee” means certain officers and highly compensated Employees of the Company as defined in Treasury Regulation Section 1.409A-1(i).
The identification date for determining whether any Employee is a Specified Employee during any calendar year shall be the September
1 preceding the commencement of such calendar year.

 

(mm) “Stock”
means the Common Stock of the Company, no par value per share.

 

(nn) “Stock
Appreciation Right” or “SAR” means the right to receive a payment equal to the excess of the Fair
Market Value of one share of Stock on the date of exercise of the SAR over the grant price of the SAR as determined pursuant to
Article 9 and the applicable Award Agreement.

 

(oo) “Stock
Grant Award” means the grant of Stock to a Participant.

 

(pp) “Termination
of Employment” means, in the context of an Award that is subject to the requirements of Section 409A of the Code,
a “Separation from Service”. In the case of any other Award, “Termination of Employment” will be given
its natural meaning.

 

2.2 Gender and
Number. Except when otherwise indicated by the context, words in the masculine gender when used in this Plan document will
include the feminine gender, the singular includes the plural, and the plural includes the singular.

 

ARTICLE 3

ELIGIBILITY AND PARTICIPATION

 

3.1 General
Eligibility. Awards may be made only to those Participants who are Employees, officers, Consultants to and Non-Employee
Directors of the Company on the Grant Date of the Award.

 

3.2 Actual Participation.
Subject to the provisions of the Plan, the Committee may, from time to time, select from among all eligible individuals, those
to whom Awards will be granted and will determine the nature and amount of each Award.

 

ARTICLE 4

ADMINISTRATION

 

4.1 Administration
by the Committee. The Committee shall be responsible for the administration of the Plan. The Committee, by majority action
thereof, is authorized to interpret the Plan, to prescribe, amend, and rescind rules and regulations relating to the Plan, to provide
for conditions and assurances deemed necessary or advisable to protect the interests of the Company, and to make all other determinations
necessary for the administration of the Plan, but only to the extent not contrary to the express provisions of the Plan. Determinations,
interpretations, or other actions made or taken by the Committee in good faith pursuant to the provisions of the Plan shall be
final, binding and conclusive for all purposes of the Plan.

 

    	6

    	 

    

 

4.2 Authority
of the Committee. The Committee shall have the authority, in its sole discretion, to determine the Participants who:
(i) are entitled to receive Awards under the Plan; (ii) the types of Awards; (iii) the times when Awards shall
be granted; (iv) the number of Awards; (v) the purchase price or exercise price, if any; (vi) the period(s)
during which such Awards shall be exercisable (whether in whole or in part); (vii) the restrictions applicable to
Awards; (viii) the form of each Award Agreement, which need not be the same for each Participant; (ix) the other terms
and provisions of any Award (which need not be identical); and (x) the schedule for lapse of forfeiture restrictions or
restrictions on exercisability of an Award and accelerations or waivers thereof, based in each case on such considerations as
the Committee in its sole discretion determines. The Committee shall have the authority to modify existing Awards, subject to
Article 16 of this Plan. Notwithstanding the foregoing, the Committee will not have the authority to accelerate the
vesting or waive the forfeiture of any Performance-Based Awards other than as provided in an Award Agreement.

 

4.3 Award Agreement.
Each Award shall be evidenced by an Award Agreement that shall specify the type of Award granted and such other provisions and
restrictions applicable to such Award as the Committee, in its discretion, shall determine.

 

4.4 Decisions
Binding. The Committee shall have the authority to interpret the Plan and subject to the provisions of the Plan,
any Award Agreement, and all decisions and determinations by the Committee with respect to the Plan are final, binding and conclusive
on all parties. No member of the Committee shall be liable for any action or determination made in good faith with respect to the
Plan or any Award granted under the Plan.

 

ARTICLE 5

STOCK SUBJECT TO THE PLAN

 

5.1 Number of
Shares. Subject to adjustment provided in Section 5.3, the total number of shares of Stock subject to all Awards under
the Plan shall be Thirteen Million Nine Hundred Thousand (13,900,000). Notwithstanding the above, the maximum number of shares
of Stock that may be issued as Incentive Stock Options under the Plan shall be Thirteen Million Nine Hundred Thousand (13,900,000).
The shares to be delivered under the Plan may consist, in whole or in part, of authorized but unissued Stock or shares purchased
on the open market or treasury Stock not reserved for any other purpose.

 

5.2 Availability
of Stock for Grant. Subject to the express provisions of the Plan, if any Award granted under the Plan terminates, expires,
lapses for any reason, or is paid in cash, any Stock subject to or surrendered for such Award will again be Stock available for
the grant of an Award. The exercise of a stock-settled SAR or broker-assisted “cashless” exercise of an Option (or
a portion thereof) will reduce the number of shares of Stock available for issuance pursuant to Section 5.1 by the entire
number of shares of Stock subject to that SAR or Option (or applicable portion thereof), even though a smaller number of shares
of Stock will be issued upon such an exercise. Also, shares of Stock tendered to pay the exercise price of an Option or tendered
or withheld to satisfy a tax withholding obligation arising in connection with an Award will not become available for grant
or sale under the Plan.

 

5.3 Adjustment
in Capitalization. In the event of any change in the outstanding shares of Stock by reason of a Stock dividend or split,
recapitalization, merger, consolidation, combination, exchange of shares, or other similar corporate change, the aggregate number
of shares of Stock available under the Plan and subject to each outstanding Award, and its stated exercise price or the basis upon
which the Award is measured, shall be adjusted appropriately by the Committee, whose determination shall be conclusive; provided,
however, that fractional shares shall be rounded to the nearest whole share. Moreover, in the event of such transaction or event,
the Committee, in its discretion, may provide in substitution for any or all outstanding awards under the Plan such alternative
consideration (including cash) as it, in good faith, may determine to be equitable under the circumstances and may require in connection
therewith the surrender of all Awards so replaced. Any adjustment to an Incentive Stock Option shall be made consistent with the
requirements of Section 424 of the Code. Further, with respect to any Option or Stock Appreciation Right that otherwise satisfies
the requirements of the stock rights exception to Section 409A of the Code, any adjustment pursuant to this Section 5.3
shall be made consistent with the requirements of the final regulations promulgated pursuant to Section 409A of the Code.

 

    	7

    	 

    

 

5.4 Annual
Limitation on Number of Shares Subject to Awards. Notwithstanding any provision in this Plan document to the contrary,
and subject to adjustment upon the occurrence of any of the events indicated in Section 5.3, the maximum number of shares
of Stock that may be granted to any one Participant, who is a Covered Employee, during any of the Company’s fiscal years
with respect to one or more Awards shall be One Million Five Hundred (1,500,000). 

ARTICLE 6

STOCK OPTIONS

 

6.1 Grant of
Options. Subject to the provisions of Article 5 and this Article 6, the Committee, at any time and from time
to time, may grant Options to such Participants and in such amounts as it shall determine.

 

(a) Exercise
Price. No Option shall be granted at an exercise price that is less than the Fair Market Value of one share of Stock on
the Grant Date.

 

(b) Time
and Conditions of Exercise. The Committee shall determine the time or times at which an Option may be exercised in whole
or in part provided that the term of any Option granted under the Plan shall not exceed ten years. The Committee shall also determine
the performance or other conditions, if any, that must be satisfied before all or part of an Option may be exercised.

 

(c) Payment.
The Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment, including,
without limitation, cash, promissory note, shares of Stock held for longer than six months (through actual tender or by attestation),
any net-issuance arrangement or other property acceptable to the Committee (including broker-assisted “cashless exercise”
arrangements), and the methods by which shares of Stock shall be delivered or deemed to be delivered to Participants.

 

(d) Evidence
of Grant. All Options shall be evidenced by a written Award Agreement. The Award Agreement shall reflect the Committee’s
determinations regarding the exercise price, time and conditions of exercise, and forms of payment for the Option and such additional
provisions as may be specified by the Committee.

 

(e) No
Repricing of Options. The Committee shall not reprice any Options previously granted under the Plan without first obtaining
stockholder approval.

 

6.2 Incentive
Stock Options. Incentive Stock Options shall be granted only to Participants who are Employees and the terms of any Incentive
Stock Options granted pursuant to the Plan must comply with the following additional provisions of this Section 6.2:

 

(a) Exercise
Price. Subject to Section 6.2(e), the exercise price per share of Stock shall be set by the Committee, provided that
the exercise price for any Incentive Stock Option may not be less than the Fair Market Value as of the date of the grant.

 

    	8

    	 

    

 

(b) Exercise.
In no event may any Incentive Stock Option be exercisable for more than ten years from the date of its grant.

 

(c) Lapse
of Option. An Incentive Stock Option shall lapse in the following circumstances:

 

(i) The
Incentive Stock Option shall lapse ten years from the date it is granted, unless an earlier time is set in the Award Agreement.

 

(ii) The
Incentive Stock Option shall lapse 90 days following the effective date of the Participant’s Termination of Employment
for any reason other than the Participant’s death or Disability, unless otherwise provided in the Award Agreement.

 

(iii) If
the Participant has a Termination of Employment on account of Disability or death before the Option lapses pursuant to paragraph
(i) or (ii) above, the Incentive Stock Option shall lapse, unless it is previously exercised, on the earlier of (a) the
scheduled expiration date of the Option; or (b) 12 months after the date of the Participant’s Termination of Employment
on account of Disability or death. Upon the Participant’s Disability or death, any Incentive Stock Options exercisable at
the Participant’s Disability or death may be exercised by the Participant’s legal representative or representatives,
by the person or persons entitled to do so pursuant to the Participant’s last will and testament, or, if the Participant
fails to make testamentary disposition of such Incentive Stock Option or dies intestate, by the person or persons entitled to receive
the Incentive Stock Option pursuant to the applicable laws of descent and distribution.

 

(d) Individual
Dollar Limitation. The aggregate Fair Market Value (determined as of the time an Award is made) of all shares of Stock
with respect to which Incentive Stock Options are first exercisable by a Participant in any calendar year may not exceed $100,000.00
or such other limitation as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive Stock
Options are first exercisable by a Participant in excess of such limitation, the excess shall be considered Non-Qualified Stock
Options.

 

(e) Ten
Percent Owners. An Incentive Stock Option shall be granted to any individual who, at the Grant Date, owns stock possessing
more than ten percent of the total combined voting power of all classes of Stock of the Company only if such Option is granted
at a price that is not less than 110% of Fair Market Value on the Grant Date and the Option is exercisable for no more than five
years from the Grant Date.

 

(f) Expiration
of Incentive Stock Options. No Award of an Incentive Stock Option may be made pursuant to this Plan after the tenth (10) anniversary
of the Effective Date, unless the stockholders of the Company vote to approve an extension of the Plan prior to such expiration
date.

 

(g) Right
to Exercise. Except as provided in Section 6.2(c)(iii), during a Participant’s lifetime, an Incentive Stock
Option may be exercised only by the Participant.

 

ARTICLE 7

RESTRICTED STOCK RIGHTS AND RESTRICTED STOCK

 

7.1 Grant of
Restricted Stock Rights and Restricted Stock. Subject to the provisions of Article 5 and this Article 7, the
Committee, at any time and from time to time, may grant Restricted Stock Rights or Restricted Stock to such Participants and in
such amounts as it shall determine.

 

    	9

    	 

    

 

7.2 Restricted
Stock Rights.

 

(a) Voting
Rights. During the Restricted Period, Participants holding the Restricted Stock Rights granted hereunder shall have no
voting rights with respect to the shares subject to such Restricted Stock Rights prior to the issuance of such shares pursuant
to the Plan.

 

(b) Form
and Timing of Payment. Payment for any vested Restricted Stock Rights Award issued pursuant to this Article 7 shall
be made in one lump sum payment of shares of Stock, cash or a combination thereof, equal to the Fair Market Value (determined as
of a specified date) of a specified number of shares of Stock. As a general rule, the shares payable under any Restrict Stock Rights
Award shall be made on or before June 15 of the calendar year following the calendar year in which the Restricted Stock Rights
vest in accordance with the “short-term deferral” exception to Section 409A as set forth in Treasury Regulation Section 1.409A-1(b)(4).

 

7.3 Grant of
Restricted Stock.

 

(a) Issuance
and Restrictions. Restricted Stock shall be subject to such restrictions on transferability and other restrictions as the
Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock). These restrictions may
lapse separately or in combination at such times and pursuant to such circumstances, as the Committee determines at the time of
the grant of the Award or thereafter.

 

(b) Forfeiture.
Except as otherwise determined by the Committee at the time of the grant of the Restricted Stock Award or thereafter, upon Termination
of Employment or the failure to satisfy one or more performance criteria during the applicable Restriction Period, Restricted Stock
that is at that time subject to restrictions shall be forfeited; provided however, that the Committee may provide in any Restricted
Stock Award Agreement 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 Committee may in other cases waive in whole or in part restrictions
or forfeiture conditions relating to Restricted Stock.

 

(c) Certificates
for Restricted Stock. Restricted Stock granted pursuant to the Plan may be evidenced in such manner as the Committee shall
determine. If certificates representing shares of Restricted Stock are registered in the name of the Participant, the certificates
must bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, and the
Company may, in its discretion, retain physical possession of the certificate until such time as all applicable restrictions lapse.

 

ARTICLE 8

PERFORMANCE SHARES, PERFORMANCE SHARE UNITS AND PERFORMANCE CASH AWARDS

 

8.1 Grant of
Performance Shares or Performance Share Units. Subject to the provisions of Article 5 and this Article 8, Performance
Shares or Performance Share Units may be granted to Participants at any time and from time to time as shall be determined by the
Committee. The Committee shall have complete discretion in determining the number of Performance Shares or Performance Share Units
granted to each Participant.

 

    	10

    	 

    

 

8.2 Value of
Performance Shares or Performance Share Units. Each Performance Share and each Performance Share Unit shall have a value
determined by the Committee at the time of grant. The Committee shall set goals (including Performance Goals) for a particular
period (including a Performance Period) in its discretion which, depending on the extent to which the goals are met, will determine
the ultimate value of the Performance Share or Performance Share Units to the Participant.

 

8.3 Form and
Timing of Payment. Payment for vested Performance Shares shall be made in Stock. Payments for vested Performance Share
Units shall be made in cash, Stock or a combination thereof as determined by the Committee. All payments for Performance Shares
and Performance Share Units shall be made in a lump sum. As a general rule, payment for Performance Shares or Performance Share
Units shall be made on or before March 15 of the calendar year following the calendar year in which the right to the payment
of the Performance Shares or Performance Share Units arises in accordance with the “short-term deferral” exception
to Section 409A as set forth in Treasury Regulation Section 1.409A-1(b)(4).

 

8.4 Performance
Cash Awards. Subject to the Provisions of this Article 8, Performance Cash Awards may be granted to Participants at
any time and from time to time as determined by the Committee. A Performance Cash Award grants a Participant the right to receive
an amount of cash depending on the satisfaction of one or more goals (including Performance Goals) for a particular period (including
a Performance Period), as determined by the Committee. The Committee shall have complete discretion to determine the amount of
any Performance Cash Award granted to a Participant. Payment for Performance Cash Awards shall be made on or before March 15
of the calendar year following the calendar year in which the right to the payment of the Performance Cash Award arises in accordance
with the “short-term deferral” exception to Section 409A as set forth in Treasury Regulation Section 1.409A-1(b)(4).

 

ARTICLE 9

STOCK APPRECIATION RIGHTS

 

9.1 Grant of
Stock Appreciation Rights. Subject to the provisions of Article 5 and this Article 9, Stock Appreciation Rights
(“SARs”) may be granted to Participants at any time and from time to time as shall be determined by the Committee.
SARs may be granted in connection with the grant of an Option, in which case the exercise of SARs will result in the surrender
of the right to purchase the shares under the Option as to which the SARs were exercised. When SARs are granted in connection with
the grant of an Incentive Stock Option, the SARs shall have such terms and conditions as shall be required by Section 422
of the Code. Alternatively, SARs may be granted independently of Options.

 

9.2 Exercisability
of SARs. SARs granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions
as the Committee shall in each instance approve, which need not be the same for all Participants; provided, however, that no SAR
shall be exercisable later than ten (10) years from the Grant Date.

 

9.3 Exercise
of SARs. Upon exercise of the SAR or at a fixed date after all or part of the SAR becomes exercisable, the Participant
shall be entitled to receive payment of an amount determined by multiplying (a) the difference, if any, of the Fair Market
Value of a share of Stock on the date of exercise over the price of the SAR fixed by the Committee at the Grant Date, which shall
not be less than the Fair Market Value of a share of Stock at the Grant Date, by (b) the number of shares with respect to
which the SAR is exercised.

 

9.4 Form and
Timing of Payment. Payment for SARs shall be made in Stock and shall be payable at the time specified in the Award Agreement
for such SARs.

 

    	11

    	 

    

 

ARTICLE 10

STOCK GRANT AWARDS

 

Subject to the provisions
of Article 5 and this Article 10, Stock Grant Awards may be granted to Participants at any time and from time to time
as shall be determined by the Committee. A Stock Grant Award grants a Participant the right to receive (or purchase at such price
as determined by the Committee) shares of Stock free of any vesting restrictions. Any purchase price for a Stock Grant Award shall
be payable in cash or other form of consideration acceptable to the Committee. A Stock Grant Award may be granted or sold as described
in the preceding sentence in respect of past services or other valid consideration, or in lieu of any cash compensation due to
such Participant. All Stock Grant Awards will be evidenced by a written Award Agreement.

 

ARTICLE 11

PERFORMANCE-BASED AWARDS

 

11.1 Grant of
Performance-Based Awards. Options granted to Covered Employees pursuant to Article 6 and SARs granted to Covered Employees
pursuant to Article 9 should, by their terms, qualify for the “performance-based compensation” exception to the
deduction limitations of Section 162(m) of the Code. The Committee, in the exercise of its complete discretion, also may choose
to qualify some or all of the Restricted Stock Rights or Restricted Stock Awards granted to Covered Employees pursuant to Article 7
and/or some or all of the Performance Shares, Performance Share Units or Performance Cash Awards granted to Covered Employees pursuant
to Article 8 and/or some or all of the Stock Grant Awards granted to Covered Employees pursuant to Article 10 for the
“performance-based compensation” exception to the deduction limitations of Section 162(m) of the Code. If the Committee,
in its discretion, decides that a particular Award to a Covered Employee should qualify as “performance-based compensation,”
the Committee will grant a Performance-Based Award to the Covered Employee and the provisions of this Article 11 shall control
over any contrary provision contained in Articles 7, 8 or 10. If the Committee concludes that a particular Award to a Covered Employee
should not be qualified as “performance-based compensation,” the Committee may grant the Award without satisfying the
requirements of Section 162(m) of the Code and the provisions of this Article 11 shall not apply.

11.2 Applicability.
This Article 11 shall apply only to Awards to those Covered Employees selected by the Committee to receive Performance-Based
Awards. The designation of a Covered Employee as a Participant for any Performance Period shall not in any manner entitle the Participant
to receive a Performance-Based Award for such Performance Period. Moreover, designation of a Covered Employee as a Participant
for a particular Performance Period shall not require designation of such Covered Employee as a Participant for any subsequent
Performance Period.

 

11.3 Committee
Discretion with Respect to Performance-Based Awards. With regard to a particular Performance Period, the Committee shall
have full discretion to select the length of the Performance Period, the type of Performance-Based Awards to be issued, the kind
and/or level of the Performance Goal or Goals and whether the Performance Goal or Goals apply to the Company, an Affiliate, or
any division or business unit thereof or the Participant or any group of Participants.

 

11.4 Establishment
of Performance Goals. The Performance Goals for any Performance-Based Award granted pursuant to this Article 11 shall
be established by the Committee in writing not later than ninety (90) days after the commencement of the Performance Period
for such Award; provided that (a) the outcome must be substantially uncertain at the time the Committee establishes the Performance
Goals; and (b) in no event will the Committee establish the Performance Goals for any Performance-Based Award after twenty-five
percent (25%) of the Performance Period for such Award has elapsed.

 

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11.5 Performance
Evaluation; Adjustment of Goals. At the time that a Performance-Based Award is first issued, the Committee, in the Award
Agreement or in another written document, shall specify whether performance will be evaluated including or excluding the effect
of any of the following events that occur during the Performance Period:

 

(a) Judgments
entered or settlements reached in litigation;

 

(b) The
write down of assets;

 

(c) The
impact of any reorganization or restructuring;

 

(d) The
impact of changes in tax laws, accounting principles, regulatory actions or other laws affecting reported results;  

 

(e) Extraordinary
non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis
of financial condition and results of operations appearing in the Company’s annual report to stockholders or Annual Report
on Form 10-K, as the case may be, for the applicable year;

 

(f) The
impact of any mergers, acquisitions, spin-offs or other divestitures; and

 

(g) Foreign
exchange gains and losses.

 

The inclusion or exclusion
of these items shall be expressed in a form that satisfies the requirements of Section 162(m) of the Code. The Committee, in its
discretion, also may, within the time prescribed by Section 162(m) of the Code, adjust or modify the calculation of Performance
Goals for such Performance Period in order to prevent the dilution or enlargement of the rights of Participants: (i) in the
event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event, or development; or (ii) in
recognition of, or in anticipation of, any other unusual or nonrecurring events affecting the Company, or the financial statements
of the Company, or in response to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business
conditions.

 

11.6 Adjustment
of Performance-Based Awards. The Committee shall have the sole discretion to adjust the determinations of the degree
of attainment of the preestablished Performance Goals. Notwithstanding any provision herein to the contrary, the Committee may
not make any adjustment or take any other action with respect to any Performance-Based Award that will increase the amount
payable under any such Award. The Committee shall retain the sole discretion to adjust Performance-Based Awards downward or to
otherwise reduce the amount payable with respect to any Performance-Based Award.

 

11.7 Payment
of Performance-Based Awards. Unless otherwise provided in the relevant Award Agreement, a Participant must be an Employee
of the Company or an Affiliate on the day a Performance-Based Award for such Performance Period is paid to the Participant. Furthermore,
a Participant shall be eligible to receive payment pursuant to a Performance-Based Award for a Performance Period only if the Performance
Goals for such Performance Period are achieved.

 

11.8 Certification
by Committee. Notwithstanding any provisions to the contrary, the payment of a Performance-Based Award shall not
occur until the Committee certifies, in writing, that the pre-established Performance Goals and any other material terms and conditions
precedent to such payment have been satisfied.

 

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11.9 Maximum
Award Payable. In accordance with Section 5.4, the maximum Performance-Based Award payable to any one participant
for a Performance Period is Five Hundred Thousand (500,000) shares of Stock, or if the Performance-Based Award is paid in cash,
the maximum Performance-Based Award will be determined by multiplying Five Hundred Thousand (500,000) by the Fair Market Value
of one share of Stock as of the first day of the Performance Period.

 

ARTICLE 12

CHANGE IN CONTROL

 

Notwithstanding any
other provision in the Plan to the contrary, the Committee, in its sole discretion, may determine that upon a Change in Control,
all or any portion of an Award shall automatically become immediately vested and/or exercisable and that the restrictions relating
to such Award shall lapse. If such determination is made by the Committee with respect to a Performance-Based Award, the award
shall vest on a pro-rata basis at the end of the Performance Period based on the level of achievement of the Performance Goals
applicable to such Award, as described in the Award Agreement. All determinations made pursuant to this Article 12 shall be
made in the applicable Award Agreement.

 

ARTICLE 13

NON-TRANSFERABILITY

 

13.1 General.
The Committee may, in its sole discretion, determine the right of a Participant to transfer any Award granted under the Plan. Unless
otherwise determined by the Committee, no Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution or pursuant to a domestic relations order
(that would otherwise qualify as a qualified domestic relations order as defined in the Code or Title I of ERISA but for the fact
that the order pertains to an Award) in favor of a spouse or, if applicable, until the termination of any Restricted Period or
Performance Period as determined by the Committee.

 

13.2 Beneficiary
Designation. Notwithstanding Section 13.1, a Participant may, in the manner determined by the Committee, designate
a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s
death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject
to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and
Award Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If no beneficiary
has been designated or survives the Participant, payment shall be made to the person entitled thereto pursuant to the Participant’s
will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by
a Participant at any time provided the change or revocation is provided to the Committee.

 

13.3 Stock Certificates.
Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing
shares of Stock pursuant to the exercise of any Award, unless and until the Committee has determined, with advice of counsel, that
the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authorities
and, if applicable, the requirements of any exchange or quotation system on which the shares of Stock are listed, quoted or traded.
All Stock certificates delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions as the Committee
deems necessary or advisable to comply with Federal, state, or foreign jurisdiction, securities or other laws, rules and regulations
and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded.
The Committee may place legends on any Stock certificate to reference restrictions applicable to the Stock. In addition to the
terms and conditions provided herein, the Board may require that a Participant make such reasonable covenants, agreements, and
representations as the Board, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements.

 

    	14

    	 

    

 

ARTICLE 14

COMPANY DISCRETION

 

14.1 Employment.
Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment
or service at any time, nor confer upon any Participant any right to continue in the employ or service of the Company.

 

14.2 Participant.
No Employee shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant.

 

14.3 No Rights
to Awards. No Participant, Employee, or other person shall have any claim to be granted any Award pursuant to the Plan,
and neither the Company nor the Committee is obligated to treat Participants, Employees, and other persons uniformly.

 

ARTICLE 15

SUBSTITUTION OF AWARDS

 

Any Award may be granted
under this Plan in substitution for Awards held by any individual who is an employee of another corporation who is about to become
an Employee of the Company as the result of a merger, consolidation or reorganization of the corporation with the Company, or the
acquisition by the Company of the assets of the corporation, or the acquisition by the Company of stock of the corporation as the
result of which such corporation becomes an Affiliate or a subsidiary of the Company. The terms and conditions of the Awards so
granted may vary from the terms and conditions set forth in this Plan to such extent as the Committee at the time of granting the
Award may deem appropriate to conform, in whole or in part, to the provisions of the Award in substitution for which they are granted.
However, in the event that the Award for which a substitute Award is being granted is an Incentive Stock Option, no variation shall
adversely affect the status of any substitute Award as an Incentive Stock Option under the Code. In addition, in the event that
the award for which a substitute Award is being granted is a Non-Qualified Stock Option or a Stock Appreciation Right that otherwise
satisfies the requirements of the “stock rights exception” to Section 409A of the Code, no variation shall adversely
affect the status of any substitute Award under the stock rights exception to Section 409A of the Code.

 

ARTICLE 16

AMENDMENT, MODIFICATION, AND TERMINATION

 

The Board may at any
time, and from time to time, terminate, amend or modify the Plan; provided however, that any such action of the Board shall be
subject to approval of the stockholders to the extent required by law, regulation or any stock exchange rule for any exchange on
which shares of Stock are listed. Notwithstanding the above, to the extent permitted by law, the Board may delegate to the Committee
or the CEO the authority to approve non-substantive amendments to the Plan. No amendment, modification, or termination of the Plan
or any Award under the Plan shall in any manner adversely affect any Award theretofore granted under the Plan without the consent
of the holder thereof (unless such change is required in order to cause the benefits under the Plan to qualify as performance-based
compensation within the meaning of Section 162(m) of the Code and applicable interpretive authority thereunder). Except as provided
in Section 5.3, neither the Board, the CEO nor the Committee may, without the approval of the stockholders: (a) reduce the
purchase price or exercise price of any outstanding Award, including any Option or SAR; (b) increase the number of shares
available under the Plan (other than any adjustment as provided in Section 5.3); (c) grant Options with an exercise price
that is below Fair Market Value on the Grant Date; (d) reprice previously granted Options or SARs; or (e) cancel any
Option or SAR in exchange for cash or any other Award or in exchange for any Option or SAR with an exercise price that is less
than the exercise price of the original Option or SAR. Additional rules relating to amendments to the Plan or any Award Agreement
to assure compliance with Section 409A of the Code as set forth in Section 19.3.

 

    	15

    	 

    

 

ARTICLE 17

TAX WITHHOLDING

 

17.1 Tax Withholding.
The Company shall have the power to withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy
federal, state, and local withholding tax requirements on any Award under the Plan. To the extent that alternative methods of withholding
are available under applicable tax laws, the Company shall have the power to choose among such methods.

 

17.2 Form of
Payment. To the extent permissible under applicable tax, securities, and other laws, the Company may, in its sole discretion,
permit the Participant to satisfy a tax withholding requirement by (a) using already owned shares that have been held by the
Participant for at least six (6) months; (b) a broker-assisted “cashless” transaction; (c) directing
the Company to apply shares of Stock to which the Participant is entitled pursuant to the Award (including, for this purpose, the
filing of an election under Section 83(b) of the Code), to satisfy the required minimum statutory withholding amount; or (d) personal
check or other cash equivalent acceptable to the Company.

 

17.3 Tax upon
Disposition of Shares Subject to Section 422 Restrictions. In the event that a Participant shall dispose (whether
by sale, exchange, gift, the use of a qualified domestic relations order (that would otherwise qualify as a qualified domestic
relations order as defined in the Code or Title I of ERISA but for the fact that the order pertains to an Award) in favor of a
spouse, of any shares of Stock of the Company that are deemed to have been purchased by the Participant pursuant to an Incentive
Stock Option and that the Participant acquired within two (2) years of the Grant Date of the related Option or within one (1) year
after the acquisition of such shares of Stock, the Participant will notify the secretary of the Company of such disposition no
later than fifteen (15) days following the date of the disposition. Such notification shall include the date or dates of the
disposition, the number of shares of Stock of which the Participant disposed, and the consideration received, if any, for such
shares of Stock. If the Company so requests, the Participant shall forward to the secretary of the Company any amount requested
by the Company for the purpose of satisfying its liability, if any, to withhold federal, state or local income or earnings tax
or any other applicable tax or assessment (plus interest or penalties thereon, if any, caused by delay in making such payment)
incurred by reason of such disposition.

 

    	16

    	 

    

 

ARTICLE 18

INDEMNIFICATION

 

Each person who is
or shall have been a member of the Committee or of the Board shall be indemnified and held harmless by the Company against and
from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him in connection with or resulting
from any claim, action, suit, or proceeding to which he may be a party or in which he may be involved by reason of any action taken
or failure to act under the Plan and against and from any and all amounts paid by him in settlement thereof, with the Company’s
approval, or paid by him in satisfaction of any judgment in any such action, suit, or proceeding against him, provided he shall
give the Company an opportunity, at its own expense, to handle and defend the same before he undertakes to handle and defend it
on his own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which
such person may be entitled under the Company’s articles of incorporation, bylaws, resolution or agreement, as a matter of
law, or otherwise, or any power that the Company may have to indemnify him or hold him harmless.

 

ARTICLE 19

REQUIREMENTS OF LAW

 

19.1 Requirements
of Law. The granting of Awards and the issuance of shares and/or cash under the Plan shall be subject to all applicable
laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.
The Company shall be under no obligation to register pursuant to the Securities Act of 1933, as amended, any of the shares of Stock
paid pursuant to the Plan. If the shares of Stock paid pursuant to the Plan may in certain circumstances be exempt from registration
pursuant to the Securities Act of 1933, as amended, the Company may restrict the transfer of such shares in such manner as it deems
advisable to ensure the availability of any such exemption.

 

19.2 Governing
Law. The Plan and all agreements into which the Company and any Participant enter pursuant to the Plan shall be construed
in accordance with and governed by the laws of the State of California. The Plan is an unfunded performance-based bonus plan for
a select group of management or highly compensated employees and is not intended to be subject to ERISA.

 

19.3 Section 409A
of the Code.

 

(a)         
General Compliance. Some of the Awards that may be granted pursuant to the Plan (including, but not necessarily
limited to, Restricted Stock Rights Awards, Performance Share Awards, Performance Share Unit Awards, Performance Cash Awards and
Stock Grant Awards) may be considered to be “non-qualified deferred compensation” subject to Section 409A of the
Code. If an Award is subject to Section 409A of the Code, the Company intends (but cannot and does not guarantee) that the
Award Agreement and this Plan comply fully with and meet all of the requirements of Section 409A of the Code or an exception
thereto and the Award Agreement shall include such provisions, in addition to the provisions of this Plan, as may be necessary
to assure compliance with Section 409A of the Code or an exception thereto. An Award subject to Section 409A of the Code
also shall be administered in good faith compliance with the provisions of Section 409A of the Code as well as applicable
guidance issued by the Internal Revenue Service and the Department of Treasury. To the extent necessary to comply with Section 409A
of the Code, any Award that is subject to Section 409A of the Code may be modified, replaced or terminated in the discretion
of the Committee. Notwithstanding any provision of this Plan or any Award Agreement to the contrary, in the event that the Committee
determines that any Award is or may become subject to Section 409A of the Code, the Company may adopt such amendments to the
Plan and the related Award Agreements, without the consent of the Participant, or adopt other policies and procedures (including
amendments, policies and procedures with retroactive effective dates), or take any other action that the Committee determines to
be necessary or appropriate to either comply with Section 409A of the Code or to exclude or exempt the Plan or any Award from the
requirements of Section 409A of the Code.

 

    	17

    	 

    

 

(b) Delay
for Specified Employees. If, at the time of a Participant’s Separation from Service, the Company has any Stock which
is publicly traded on an established securities market or otherwise, and if the Participant is considered to be a Specified Employee,
to the extent any payment for any Award is subject to the requirements of Section 409A of the Code and is payable upon the
Participant’s Separation from Service, such payment shall not commence prior to the first business day following the date
which is six (6) months after the Participant’s Separation from Service (or if earlier than the end of the six (6) month
period, the date of the Participant’s death). Any amounts that would have been distributed during such six (6) month
period will be distributed on the day following the expiration of the six (6) month period.

 

(c) Prohibition
on Acceleration or Deferral. Under no circumstances may the time or schedule of any payment for any Award that is subject
to the requirements of Section 409A of the Code be accelerated or subject to further deferral except as otherwise permitted
or required pursuant to regulations and other guidance issued pursuant to Section 409A of the Code. If the Company fails to
make any payment pursuant to the payment provisions applicable to an Award that is subject to Section 409A of the Code, either
intentionally or unintentionally, within the time period specified in such provisions, but the payment is made within the same
calendar year, such payment will be treated as made within the time period specified in the provisions. In addition, in the event
of a dispute with respect to any payment, such payment may be delayed in accordance with the regulations and other guidance issued
pursuant to Section 409A of the Code.

 

19.4 Securities
Law Compliance. With respect to any Participant who is, on the relevant date, obligated to file reports pursuant to Section 16
of the Exchange Act, transactions pursuant to this Plan are intended to comply with all applicable conditions of Rule 16b-3
or its successors pursuant to the Exchange Act. Notwithstanding any other provision of the Plan, the Committee may impose such
conditions on the exercise of any Award as may be required to satisfy the requirements of Rule 16b-3 or its successors pursuant
to the Exchange Act. To the extent any provision of the Plan or action by the Committee fails to so comply, it shall be void to
the extent permitted by law and voidable as deemed advisable by the Committee.

 

19.5 Restrictions.
The Committee shall impose such restrictions on any Awards under the Plan as it may deem advisable, including without limitation,
restrictions under applicable federal securities law, under the requirements of any stock exchange upon which the Stock is then
listed and under any blue sky or state securities laws applicable to such Awards.

 

ARTICLE 20

GENERAL PROVISIONS

 

20.1 Funding.
The Company shall not be required to segregate any of its assets to ensure the payment of any Award under the Plan. Neither the
Participant nor any other persons shall have any interest in any fund or in any specific asset or assets of the Company or any
other entity by reason of any Award, except to the extent expressly provided hereunder. The interests of each Participant and former
Participant hereunder are unsecured and shall be subject to the general creditors of the Company.

 

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20.2 No Stockholders
Rights. No Award gives the Participant any of the rights of a stockholder of the Company unless and until shares of Stock
are in fact issued to such person in connection with such Award.

 

20.3 Titles
and Headings. The titles and headings of the Articles in the Plan are for convenience of reference only and, in the event
of any conflict, the text of the Plan, rather than such titles or headings, shall control.

 

20.4 Successors
and Assigns. The Plan shall be binding upon and inure to the benefit of the successors and permitted assigns of the Company,
including without limitation, whether by way of merger, consolidation, operation of law, assignment, purchase, or other acquisition
of substantially all of the assets or business of the Company, and any and all such successors and assigns shall absolutely and
unconditionally assume all of the Company’s obligations under the Plan.

 

20.5 Survival
of Provisions. The rights, remedies, agreements, obligations and covenants contained in or made pursuant to this
Plan, any agreement and any notices or agreements made in connection with this Plan shall survive the execution and delivery of
such notices and agreements and the delivery and receipt of such shares of Stock if required by Section 13.3, shall remain
in full force and effect.

 

	 	 	 	 	 	 
	 	 	 	CryoPort, Inc.
	 	 	 	 	 	 
	 	 	 	By: 	 	/s/ Robert S. Stefanovich
	 	August 29, 2014	 	Name: 	 	Robert S. Stefanovich
	 	Date 	 	Title: 	 	Chief Financial Officer 
	 	 	 	 	 	 

 

    	19

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