Document:

Exhibit

Exhibit 10.1

ALTISOURCE RESIDENTIAL CORPORATION
Change in Control Severance Agreement
THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (the “Agreement”) is dated as of [•], 2017 (the “Effective Date”), by and between Altisource Residential Corporation, a Maryland corporation (the “Company”), and [•](the “Executive”).
RECITALS
WHEREAS, Altisource Asset Management Corporation, a United States Virgin Islands corporation (the “Manager”), serves as the external manager of the Company pursuant to that certain that certain Asset Management Agreement dated March 31, 2015, between the Manager and the Company, as may be amended from time to time (the “Asset Management Agreement”); 
WHEREAS, the Executive is an employee of [the Manager] [the Cayman Subsidiary], and in such capacity provides management services to the Company;
WHEREAS, the Company recognizes the value of the Executive to the Company and has determined that appropriate steps should be taken to ensure the Company of the Executive’s continued attention and dedication to duty, and to ensure the availability of the Executive’s continued service, including in the event of a Change in Control of the Company; and
WHEREAS, in order to fulfill the above purposes, and recognizing that the Executive shall be entitled to rely on various benefits, the Compensation Committee of the Board of Directors of the Company has determined that it is appropriate and in the best interests of the Company to enter into this Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby covenant and agree as follows:
1.Term. This Agreement shall have an initial three-year term and shall renew thereafter for successive one-year terms, unless the Company provides written notice to the Executive at least 90 days prior to any then-applicable expiration date of its intent not to renew the Agreement. If, however, this Agreement is in effect at the time of a Change in Control (as defined below), then it shall not terminate prior to the second anniversary of such Change in Control; provided, that if a Qualifying Termination should occur during such period, this Agreement shall terminate when the Company’s payment obligations hereunder are satisfied. Notwithstanding the foregoing, this Agreement shall automatically terminate upon a termination of Executive’s employment with the Employer other than as a result of a Qualifying Termination.

2.Definitions. All capitalized terms used but not otherwise defined herein shall have the meaning set forth below:

(a)“Affiliate” means, with respect to a Person, any other Person directly or indirectly controlling, controlled by or under common control with such Person.

(b)“Asset Management Agreement” means that certain Asset Management Agreement dated March 31, 2015, between the Manager and the Company, as may be amended from time to time.

(c)“Base Salary” means the Executive’s annual base salary in effect on the Termination Date, disregarding any reduction in anticipation of, or following, a Change in Control.

(d)“Cause” means gross or willful neglect of duty that is not corrected after 30 days’ written notice thereof; misconduct, malfeasance, fraud or dishonesty that materially and adversely affects the Employer or its reputation in the industry; or the commission of a felony or a crime involving moral turpitude. All determinations as to Cause shall be made by the Board of Directors (or equivalent governing body) of the Employer, or a committee thereof, in its reasonable sole discretion.

(e)“Cayman Subsidiary” means AAMC Cayman SEZC Ltd., a Cayman Islands exempted company and indirect subsidiary of the Manager, or any of its successors or assigns.

(f)“Change in Control” means:

(i)The date that a reorganization, merger, consolidation, recapitalization, or similar transaction (other than a spinoff, exchange offer or similar transaction to or with the Company’s shareholders) is consummated, unless: (i) at least 50% of the outstanding voting securities of the surviving or resulting entity (including, without limitation, an entity which as a result of such transaction owns the Company either directly or through one or more subsidiaries) (“Resulting Entity”) are beneficially owned, directly or indirectly, by the persons who were the beneficial owners of the outstanding voting securities of the Company immediately prior to such transaction in substantially the same proportions as their beneficial ownership, immediately prior to such transaction, of the outstanding voting securities of the Company and (ii) immediately following such transaction no person or persons acting as a group beneficially owns capital stock of the Resulting Entity possessing thirty-five percent (35%) or more of the total voting power of the stock of the Resulting Entity;

(ii)The date that a majority of members of the Company’s Board of Directors is replaced during any twenty-four (24) month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board of Directors before the date of the appointment or election; provided that no individual shall be considered to be so endorsed if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the Securities Exchange Act of 1934) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest;

(iii)The date that any one person, or persons acting as a group, other than an employee benefit plan of the Company or one of its Affiliates, or a trust thereof, or any underwriter, 

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acquires (or has or have acquired as of the date of the most recent acquisition by such person or persons) beneficial ownership of stock of the Company possessing thirty-five percent (35%) or more of the total voting power of the stock of the Company; or

(iv)The date that any one person acquires, or persons acting as a group acquire (or has or have acquired as of 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 forty percent (40%) of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions.

(g)“Code” means the Internal Revenue Code of 1986, as amended.

(h)“Employer” means the Manager, the Cayman Subsidiary or any of their Affiliates, successors or assigns, as applicable, in such entity’s capacity as the legal employer of the Executive at the relevant time.

(i)“Good Reason” means, without the consent of the Executive: (i) a reduction in the Executive’s Base Salary or target annual bonus, (ii) the notification of the Executive by the Employer that the Employer shall require the Executive to relocate his or her primary place of service with the Employer to a site that is more than 50 miles from both the Executive’s current primary place of service and the Executive’s primary residence, or (iii) a material reduction in the scope of responsibility or authority of the Executive including, without limitation, a termination of the Asset Management Agreement for any reason other than the occurrence of a “Cause Event” (as defined in the Asset Management Agreement) resulting in the Executive no longer having responsibility to manage the primary assets managed by the Manager immediately prior to a Change in Control; provided, however, that no act or omission described above shall be treated as “Good Reason” under this Agreement unless (a) the Executive delivers to the Employer a written statement of the basis for Executive’s belief that Good Reason exists within 120 days following the date such basis first arises, (b) the Employer fails to cure the grounds constituting Good Reason within 30 days following Executive’s delivery of such written statement, and (c) Executive actually resigns within 90 days of such failure to cure.

(j) “Person” has the meaning ascribed to such term in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder, and used in Sections 13(d) and 14(d) thereof, and shall include a “group” as defined in Section 13(d) thereof.

(k)“Protection Period” means the period commencing upon the date of consummation of a Change in Control and expiring on the second anniversary thereof.

(l)“Qualifying Termination” means the occurrence of any of the following during the Protection Period: 

(i)A termination of the Executive’s employment by the Employer without Cause; or

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(ii)Executive’s resignation from the Employer with Good Reason.

(m)“Termination Date” means the date that Executive experiences a Qualifying Termination.

3.Severance Benefits. 

(a)Components. Subject to Section 4, if the Executive experiences a Qualifying Termination, the Company shall provide Executive with the following payments and benefits:

(i)Salary Payment. An amount equal to [•] times Executive’s Base Salary (the “Salary Payment”);

(ii)Bonus Payment. An amount equal to [•] times the Executive’s target annual bonus amount for the year of termination (the “Bonus Payment”);

(iii)Prorated Bonus Payment. An amount equal to the product of (A) Executive’s target annual bonus amount for the year of termination and (B) a fraction, the numerator of which is the number of days from January 1 through the Termination Date, and the denominator of which is 365 (such amount, the “Prorated Bonus Payment”);

(iv)Medical Benefits. An amount equal to 18 times the monthly premium (if any) paid by Employer for medical, dental and vision insurance coverage for the Executive and his eligible dependents immediately prior to the Qualifying Termination (the “Medical Benefits”);

(v)Equity Acceleration. Immediate vesting, lapse of restriction and full exercisability with respect to all equity or equity-based awards granted to the Executive under any Company equity plans (the “Equity Acceleration”);

(vi)Prior-Year Bonus. To the extent not paid as of the Termination Date, the annual bonus (if any) earned by the Executive for the year immediately preceding the year in which the Executive’s Termination Date occurs determined in good faith on a basis consistent with the Employer’s annual incentive compensation program as in effect immediately prior to the Change of Control, and payable on the later of (i) the payment date determined pursuant to Section 3(b) below and (ii) the date that such bonus would have been paid had the Executive remained employed; and

(vii)Accrued Benefits. All base salary earned or accrued but unpaid through the Termination Date; reimbursement for any and all monies advanced in connection with the Executive’s service for reasonable and necessary business expenses incurred by the Executive through the Termination Date; any earned and accrued but unused vacation pay; and all other payments and benefits to which the Executive may be entitled following Executive’s Qualifying Termination under the terms and conditions of any then-existing employee compensation or benefit plan, program, policy or arrangement of the Employer (collectively, the “Accrued Benefits”).

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(b)Timing. Except as otherwise required by law or set forth above, any amounts payable hereunder shall be made in a lump-sum payment in cash on the 60th day following the Termination Date (the “Payment Date”). 

(c)Offset. Notwithstanding anything herein to the contrary, the amount of the lump sum payment under Section 3(b) hereof shall be reduced (but not below zero) by either or both of the following, taken together, without duplication: 

(i)The value of any comparable severance benefits, but excluding any equity or equity-based severance benefits, to which Executive may be entitled from the Company, the Manager or any of their respective Affiliates pursuant to any plan, agreement, contract or other arrangement; and

(ii)The amount of any compensatory payments, but excluding any equity or equity-based compensatory payments, that Executive has received or to which Executive is entitled as of the Payment Date as a result of or in connection with a Residential Change of Control (as defined in the Asset Management Agreement), either alone or in combination with any other event, whether related to Section 16 of the Asset Management Agreement or otherwise, and whether payable by the Company, the Manager, any party to such Residential Change of Control, any of their respective Affiliates or any other Person, in all cases, as determined by the Company’s Board of Directors in its good-faith discretion prior to the date of such Residential Change of Control.

4.Release of Claims and Covenant Not to Sue. The Company’s obligation to provide the Salary Payment, Bonus Payment, Prorated Bonus Payment, Medical Benefits and Equity Acceleration (the “Severance Benefits”) shall be subject to and contingent upon (a) the Executive’s execution and delivery to the Company of a general release of claims and covenant not to sue substantially in the form attached hereto as Exhibit A (the “Release Agreement”) on or within 21 days following the Termination Date, and (b) such Release Agreement becoming effective and irrevocable within 29 days following the Termination Date in accordance with its terms. For the avoidance of doubt, the Executive shall forfeit the Severance Benefits if the Release Agreement has not been timely executed and delivered to the Company and become effective and irrevocable. The parties agree that, except as set forth in Section 4 hereof or as otherwise required by law, the Executive shall not be entitled to receive any compensation or benefits after the Termination Date. 

5.Section 280G Reduction. In the event that it is determined that any payments or benefits provided hereunder, together with any payments or benefits to be provided under any other plan, program, arrangement or agreement, would constitute “parachute payments” within the meaning of Section 280G of the Code and would, but for this Section 5, be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax under state or local law or any interest or penalties with respect to such taxes (the “Excise Tax”), then the amounts of any such payments or benefits under the Plan and such other arrangements shall be either (i) paid in full or (ii) reduced to the minimum extent necessary to ensure that no portion of the payments or benefits is subject to the Excise Tax, whichever of the foregoing (i) or (ii) results in the Executive’s receipt on an after-tax basis of the greatest amount of payments and benefits after 

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taking into account the applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax). Any such reduction shall be made by the Company in its sole discretion consistent with the requirements of Section 409A and shall include prompt repayment by Executive of any payments or benefits that are determined to be subject to such reduction and that have previously been paid or provided to Executive. Any determination required under this Section 5 shall be made in writing in good faith by a nationally recognized public accounting firm selected by the Company, whose determination shall be final and binding. The Company and the Executive shall provide the accounting firm with such information and documents as the accounting firm may reasonably request in order to make a determination under this Section 5.

6.General Provisions.

(a)Withholding. The Company shall be entitled to deduct or withhold, or require the Executive to remit to the Company, the minimum statutory amount necessary to satisfy federal, state or local taxes required by law or regulation to be withheld with respect to any payment or benefit provided hereunder.

(b)Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be deemed given when delivered personally, delivered by certified or registered mail, postage prepaid, return receipt requested, or delivered by overnight courier (provided that a written acknowledgment of receipt is obtained by the overnight courier) to any party concerned at the address indicated below or to such changed address as such party may subsequently give such notice of:

	
			
	If to Company:
	 
	Altisource Residential Corporation

	 
	 
	c/o Altisource Asset Management Corporation

	 
	 
	36C Strand Street

	 
	 
	Christiansted, United States Virgin Islands 00820

	 
	 
	Attention: General Counsel

If to Executive, at Executive’s then-current primary mailing address as indicated in the Company’s records.
(c)Successors and Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the Company and any successor of or to the Company, including, without limitation, any purchaser of all or substantially all of the assets or equity interests of the Company. This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees and/or legatees.

(d)Waiver. No provision of this Agreement may be modified, amended or waived unless such modification, amendment or waiver is agreed to in writing signed by the Executive and the Company. No waiver by any party hereto at any time of any breach by any other party hereto shall be deemed a waiver of similar or dissimilar provisions at the same or at any prior or subsequent time.

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(e)Entire Agreement; Interaction with Other Agreements. This Agreement shall supersede any and all prior understandings, representations or presentations, whether written or oral, relating to the subject matter hereof.

(f)Governing Law. Any dispute, controversy or claim of whatever nature arising out of or relating to this Agreement or breach thereof shall be governed by and interpreted under the laws of the State of Maryland without regard to conflict-of-law or choice-of-law principles. 

(g)Section 409A.

(i)The parties agree that this Agreement shall be interpreted to comply with or be exempt from Section 409A of the Code and the regulations and guidance promulgated thereunder to the extent applicable (collectively, “Section 409A”), and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. In no event whatsoever will the Company or the Manager be liable for any additional tax, interest or penalties that may be imposed on Executive under Section 409A or any damages for failing to comply with Section 409A. 

(ii)A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits considered “nonqualified deferred compensation” under Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” If Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code, then with regard to any payment or the provision of any benefit that is considered nonqualified deferred compensation under Section 409A payable on account of a “separation from service,” no such payment or benefit shall be made or provided prior to the earlier of (A) the expiration of the six-month period measured from the date of such “separation from service” of Executive, and (B) the date of Executive’s death (the “Delay Period”). All payments and benefits delayed pursuant to this Section 6(g)(ii) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed on the first business day following the expiration of the Delay Period to Executive in a lump sum without interest, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

(iii)For purposes of Section 409A, Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within 10 business days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company. All expenses or other reimbursements as provided herein shall be payable in accordance with the Company’s policies in effect from time to time, but in any event shall be 

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made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Executive; no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year; and Executive’s right to reimbursement or in-kind benefits shall not be subject to liquidation or exchanged for any other benefit.

(h)Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

[remainder of page intentionally left blank; signature page follows]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 

ALTISOURCE RESIDENTIAL CORPORATION

_________________________________
Name: 
Title:

EXECUTIVE

_________________________________
Name: 

[Signature Page to Change in Control Severance Agreement]

EXHIBIT A
FORM OF RELEASE AND COVENANT NOT TO SUE AGREEMENT

THIS RELEASE AND COVENANT NOT TO SUE (this “Release Agreement”), dated as of [•], is by and between Altisource Residential Corporation, a Maryland corporation (the “Company”), and [•] (the “Executive”).
RECITALS
WHEREAS, the Company and the Executive previously entered into a Change in Control Severance Agreement, dated as of [•], 2017 (the “Severance Agreement”);
WHEREAS, the Executive has experienced a Qualifying Termination effective [•]; and
WHEREAS, capitalized terms used but not defined herein shall have the meanings ascribed to them in the Severance Agreement.
NOW, THEREFORE, in consideration of such employment and the mutual covenants and promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive agree as follows:

1.General Release and Covenant Not to Sue.

(a)In consideration of the Executive’s right to receive the severance benefits set forth in Section 3(i) - (v) of the Severance Agreement, the Executive, on behalf of himself and his heirs, executors, administrators, trustees, legal representatives, successors and assigns (hereinafter collectively referred to for purposes of Section 1 as the “Executive”), hereby agrees to irrevocably and unconditionally waive, release and forever discharge the Company and its past, present and future affiliates and related entities, parent and subsidiary corporations, divisions, shareholders, predecessors, current, former and future officers, directors, employees, trustees, fiduciaries, administrators, executives, agents, representatives, investors, successors and assigns (collectively, the “Company Released Parties”) from any and all waivable claims, charges, demands, sums of money, actions, rights, promises, agreements, causes of action, obligations and liabilities of any kind or nature whatsoever, at law or in equity, whether known or unknown, existing or contingent, suspected or unsuspected, apparent or concealed, foreign or domestic (hereinafter collectively referred to as “claims”) which he has now or in the future may claim to have against any or all of the Company Released Parties based upon or arising out of any facts, acts, conduct, omissions, transactions, occurrences, contracts, claims, events, causes, matters or things of any conceivable kind or character existing or occurring or claimed to exist or to have occurred prior to the date of the Executive’s execution of this Release Agreement in any way whatsoever relating to or arising out of Executive’s employment by the Company, Manager, and/or Cayman Subsidiary, or the termination of such employment. Such claims include, without limitation, claims arising under the Civil Rights Acts, the Age Discrimination in Employment Act (“ADEA”), the Americans With Disabilities Act, the Employee Retirement Income Security Act, the Family Medical Leave Act, the Maryland Equal Pay Act, Maryland’s anti-discrimination statute (Title 20 of the State Government 

Article of the Maryland Annotated Code), [any Virgin Islands laws relating to labor or employment (including, but not limited to, Title 24 of the Virgin Islands Code),] [any Cayman Islands laws relating to labor or employment (including, but not limited to, the Cayman Islands’ Labour Law)], and any other federal, state or local statutory laws relating to employment, discrimination in employment, termination of employment, wages, benefits or otherwise or any other federal, state or local constitution, statute, rule, or regulation, including, but not limited to, any ordinance addressing fair employment practices, any claims for employment or reemployment by the Company Released Parties, any common law claims, including but not limited to actions in tort, defamation and breach of contract, any claim or damage arising out of the Executive’s employment with or separation from the Company Released Parties (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; and any and all claims for counsel fees and costs.

(b)The Executive understands that he is releasing the Company Released Parties from claims that he may not know about as of the date of the execution of this Release Agreement, and that it is his knowing and voluntary intent even though the Executive recognizes that someday he might learn that some or all of the facts he currently believes to be true are untrue and even though he might then regret having signed this Release Agreement. Nevertheless, the Executive understands that he is expressly assuming that risk and agrees that this Release Agreement shall remain effective in all respects in any such case. The Executive expressly and completely waives all rights he might have under any law that is intended to protect him from waiving unknown claims, and the Executive understands the significance of doing so.

(c)In consideration of the terms set forth in this Release Agreement, the Executive represents that the Executive has not filed or permitted to be filed against the Company Released Parties any charges, complaints or lawsuits, and the Executive covenants and agrees that the Executive will not file or permit to be filed any lawsuits at any time hereafter with respect to the subject matter of this Release Agreement and claims released pursuant to this Release Agreement (including, without limitation, any claims relating to the termination of the Executive’s employment), except as may be necessary to enforce this Release Agreement or to seek a determination of the validity of the waiver of the Executive’s rights under ADEA.

(d)The Executive understands and agrees that nothing in this Release Agreement, limits or interferes with the Executive’s right, without notice to or authorization of the Company, to communicate in good faith with any Government Agency for the purpose of reporting a possible violation of law, or to participate in any investigation or proceeding that may be conducted by any Government Agency, including by providing documents or other information, or for the purpose of filing a charge or complaint with a Government Agency. As used in this Release Agreement, “Government Agency” shall mean the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, any other self-regulatory organization or any other federal, state or local governmental agency or commission. In the event the Executive files a charge or complaint with a Government Agency, or a Government Agency asserts a claim on the Executive’s behalf, the Executive agrees that his release of claims in this Release Agreement shall nevertheless bar the Executive’s right (if any) to any monetary or other 

recovery (including reinstatement), except the Executive does not waive: (i) the Executive’s right to receive a whistleblower award from a Government Agency for information provided to such Government Agency, (ii) any recovery to which the Executive may be entitled pursuant to workers’ compensation and unemployment insurance laws, and (iii) any other right where a waiver is expressly prohibited by law. Further, nothing in this Release Agreement prevents or waives the Executive’s right to challenge the validity of this Release Agreement under the ADEA as amended by the Older Workers Benefit Protection Act (the “OWBPA”) or otherwise.

(e)Nothing in this Section 1, or elsewhere in this Release Agreement, is intended as, or shall be deemed or operate as, a release by the Executive (i) of any claims for payments to which the Executive is entitled under the express language of Section 3 of the Severance Agreement, (ii) of any claims for vested benefits under any employee benefit plan of the Company, (iii) of any rights of the Executive as a shareholder of the Company or any of its subsidiaries, and (iv) of any right that the Executive had immediately prior to his termination of employment to be indemnified by any Company Released Party or to coverage under any directors and officers insurance policy and any run-off policy thereto.

2.No Admission of Liability. It is understood that nothing in this Release Agreement is to be construed as an admission on behalf of the Company Released Parties of any wrongdoing with respect to the Executive, any such wrongdoing being expressly denied. 

3.Acknowledgements.

(a)The Executive acknowledges that:

(i)Before entering into this Release Agreement, the Executive has had the opportunity to consult with any attorney or other advisor of the Executive’s choice, and the Executive has been advised to do so if the Executive chooses;

(ii)The Executive has entered into this Release Agreement of the Executive’s own free will, and that no promises or representations have been made to the Executive by any person to induce the Executive to enter into this Release Agreement other than the express terms set forth herein and in the Severance Agreement;

(iii) The Executive has read this Release Agreement and understands all of its terms, including the release of claims and covenant not to sue set forth in Section 1 above;

(iv)The Severance Payment as defined and set forth in Section 3(i) - (v) of the Severance Agreement is in consideration of this release of claims and covenant not to sue, and constitutes consideration in addition to anything of value to which the Executive is already entitled;

(v)The Executive has twenty-one (21) days within which to consider this Release Agreement (although the Executive may choose voluntarily to sign it earlier);

(vi)The Executive has seven (7) days following the date the Executive signs this Release Agreement to revoke this Release Agreement by delivering a written notice of such revocation to: 

Altisource Residential Corporation
c/o Altisource Asset Management Corporation
36C Strand Street
Christiansted, United States Virgin Islands 00820
Attention: General Counsel; and

(vii)This Release Agreement shall not become effective or enforceable until the first (1st) day following the end of the seven (7) day revocation period; provided that the Executive has signed, returned and not revoked this Release Agreement in accordance with the terms hereof.

4.Miscellaneous.

(a)Governing Law. This Release Agreement shall be construed under and enforced in accordance with the laws of the State of Maryland.

(b)Prior Agreements. Unless stated otherwise expressly herein, the terms and conditions of the Retention and Severance Agreement shall remain in full force and effect.

(c)Construction. There shall be no presumption that any ambiguity in this Release Agreement should be resolved in favor of one party hereto and against another party hereto. Any controversy concerning the construction of this Release Agreement shall be decided neutrally without regard to authorship.

(d)Counterparts. This Release Agreement may be executed in one or more counterparts, each of which shall be deemed an original and shall have the same effect as if the signatures hereto and thereto were on the same instrument.

THE UNDERSIGNED HAVE CAREFULLY READ THE FOREGOING AGREEMENT, KNOW THE CONTENTS THEREOF, FULLY UNDERSTAND IT, AND SIGN THE SAME AS HIS OR ITS OWN FREE ACT.

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IN WITNESS WHEREOF, the parties hereto have executed this Release Agreement as of the date first written above. 

ALTISOURCE RESIDENTIAL CORPORATION

_________________________________
Name: 
Title:

EXECUTIVE

_________________________________
Name:EXHIBIT
10.1

 

BIOCRYST PHARMACEUTICALS, INC.

STOCK INCENTIVE PLAN

(AS AMENDED AND RESTATED APRIL 3, 2017)

 

 

Article
One

GENERAL PROVISIONS 

 

I.                  
PURPOSES OF THE PLAN

 

A.               
This Stock Incentive Plan (the “Plan”), formerly the “BioCryst Pharmaceuticals, Inc. 1991 Stock Option
Plan,” is intended to promote the interests of BioCryst Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
by providing a method whereby (i) employees (including officers and directors) of the Company (or its parent or subsidiary corporations),
(ii) non-employee members of the board of directors of the Company (the “Board”) (or of any parent or subsidiary corporations)
and (iii) consultants and other independent contractors who provide valuable services to the Company (or any parent or subsidiary
corporations) may be offered the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest,
in the Company as an incentive for them to remain in the service of the Company (or any parent or subsidiary corporations).

 

B.                
For purposes of the Plan, the following provisions shall be applicable in determining the parent and subsidiary corporations
of the Company:

 

(i)       Any
corporation (other than the Company) in an unbroken chain of corporations ending with the Company shall be considered to be a parent
corporation of the Company, provided each such corporation in the unbroken chain (other than the Company) owns, at the time of
the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one
of the other corporations in such chain.

 

(ii)       Each
corporation (other than the Company) in an unbroken chain of corporations beginning with the Company shall be considered to be
a subsidiary of the Company, provided each such corporation (other than the last corporation) in the unbroken chain owns,
at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

 

C.                
The Plan, as amended and restated, was approved and adopted by the Board on April
3, 2017 in order to increase by 1,000,000 the
number of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), subject to approval
by the Company’s stockholders at the Company’s 2017
Annual Stockholders Meeting.

 

II.               
STRUCTURE OF THE PLAN

 

A.               
The Plan shall be divided into three separate equity programs:

 

    

     

    

(i)       the
Discretionary Option Grant Program specified in Article Two, pursuant to which eligible persons may, at the discretion of the Plan
Administrator, be granted options to purchase shares of Common Stock,

 

(ii)       the
Stock Issuance Program specified in Article Three, pursuant to which eligible persons may, at the discretion of the Plan Administrator,
be issued shares of Common Stock directly or through the issuance of restricted stock units (“RSUs”) that provide for
the issuance of shares of Common Stock if the applicable vesting criteria are satisfied, and

 

(iii)       the
Automatic Option Grant Program specified in Article Four, pursuant to which non-employee members of the Board will automatically
receive option grants to purchase shares of Common Stock.

 

B.                
Unless the context clearly indicates otherwise, the provisions of Articles One and Five of the Plan shall apply to all equity
programs under the Plan and shall accordingly govern the interests of all individuals under the Plan.

 

III.            
ADMINISTRATION OF THE PLAN

 

A.               
The Plan shall be administered by the Committee who shall be the Compensation Committee of the Board or, in the absence
of a Compensation Committee, a properly constituted committee or the Board itself (the administrator is referred to herein as the
“Committee” or the “Plan Administrator”). Any power of the Committee may also be exercised by the Board,
except to the extent that the grant or exercise of such authority would cause any Award or transaction to become subject to (or
lose an exemption under) the short-swing profit recovery provisions of Section 16 of the Securities Exchange Act of 1934 or cause
an Award designated as a Performance Award not to qualify for treatment as performance-based compensation under Section 162(m)
of the Code. To the extent that any permitted action taken by the Board conflicts with action taken by the Committee, the Board
action shall control. The Compensation Committee may by resolution authorize one or more officers of the Company to perform any
or all things that the Committee is authorized and empowered to do or perform under the Plan, and for all purposes under this Plan,
such officer or officers shall be treated as the Committee; provided, however, that the resolution so authorizing such officer
or officers shall specify the total number of Awards (if any) such officer or officers may award pursuant to such delegated authority,
and any such Award shall be subject to the form of award agreement theretofore approved by the Compensation Committee. No such
officer shall designate himself or herself as a recipient of any Awards granted under authority delegated to such officer. In addition,
the Compensation Committee may delegate any or all aspects of the day-to-day administration of the Plan to one or more officers
or employees of the Company or any subsidiary or affiliate, and/or to one or more agents.

 

B.                
Subject to the express provisions of this Plan, the Committee shall be authorized and empowered to do all things that it
determines to be necessary or appropriate in connection with the administration of this Plan, including, without limitation: (i)
to prescribe, amend and rescind rules and regulations relating to this Plan and to define terms not otherwise defined herein; (ii)
to determine which persons are grantees, to which of such grantees, if any, awards shall be granted hereunder and the timing of
any such awards; (iii) to grant awards to grantees and determine the terms and conditions thereof, including the number of shares
of Common Stock subject to awards and the exercise or purchase price of such shares and the circumstances under which awards become
exercisable or vested or are forfeited or expire, which terms may but need not be conditioned upon the passage of time, continued
employment, the satisfaction of performance criteria, the occurrence of certain events (including events which constitute a Change
in Control to the extent permitted hereunder), or other factors;
(iv) to establish and verify the extent of satisfaction of any performance goals or other conditions applicable to the grant, issuance,
exercisability, vesting and/or ability to retain any award; (v) to prescribe and amend the terms of the agreements or other documents
evidencing awards made under this Plan (which need not be identical) and the terms of or form of any document or notice required
to be delivered to the Company by grantees under this Plan; (vi) to determine the extent to which adjustments are required pursuant
to Article One; (vii) to interpret and construe this Plan, any rules and regulations under this Plan and the terms and conditions
of any award granted hereunder, and to make exceptions to any such provisions for the benefit of the Company; (viii) to approve
corrections in the documentation or administration of any award; and (ix) to make all other determinations deemed necessary or
advisable for the administration of this Plan.

 

    2 

     

    

C.                
All decisions, determinations and interpretations by the Committee regarding the Plan, any rules and regulations under the
Plan and the terms and conditions of or operation of any Award granted hereunder, shall be final and binding on all grantees, beneficiaries,
heirs, assigns or other persons holding or claiming rights under the Plan or any Award. The Committee shall consider such factors
as it deems relevant, in its sole and absolute discretion, to making such decisions, determinations and interpretations including,
without limitation, the recommendations or advice of any officer or other employee of the Company and such attorneys, consultants
and accountants as it may select.

 

D.               
The Compensation Committee may delegate all or a portion of their duties hereunder to one or more individuals or committees.
Any reference to the Compensation Committee or the Plan Administrator shall refer to such individual(s) or committee(s) to the
extent of such delegation.

 

E.                
Administration of the Automatic Option Grant Program shall be self-executing in accordance with the express terms and conditions
of Article Four, and no Plan Administrator shall exercise any discretionary functions under that program.

 

IV.            
ELIGIBILITY

 

A.               
The persons eligible to participate in the Discretionary Option Grant and Stock Issuance Programs shall be limited to the
following:

 

(i)       officers
and other employees of the Company (or its parent or subsidiary corporations);

 

(ii)       individuals
who are consultants or independent advisors and who provide valuable services to the Company (or its parent or subsidiary corporations);
and

 

(iii)       non-employee
members of the Board (or of the board of directors of parent or subsidiary corporations).

 

    3 

     

    

B.                
Only Board members who are not employees of the Company (or any parent or subsidiary) shall be eligible to receive automatic
option grants pursuant to the Automatic Option Grant Program specified in Article Four.

 

C.                
The Plan Administrator shall, within the scope of its administrative jurisdiction under the Plan, have full power and authority
to determine (i) whether to grant options in accordance with the Discretionary Option Grant Program or to effect stock issuances
in accordance with the Stock Issuance Program, (ii) which eligible persons are to receive option grants under the Discretionary
Option Grant Program, the time or times when such option grants are to be made, the number of shares to be covered by each such
grant, the status of the granted option as either an incentive stock option (“Incentive Option”) which satisfies the
requirements of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) or a non-statutory option
not intended to meet such requirements, the time or times when each such option is to become exercisable, the vesting schedule
(if any) applicable to the option shares and the maximum term for which such option is to remain outstanding, and (iii) which eligible
persons are to receive stock issuances under the Stock Issuance Program, the time or times when such issuances are to be made,
the number of shares to be issued to each grantee, the vesting schedule (if any) applicable to the shares and the consideration
for such shares.

 

V.               
STOCK SUBJECT TO THE PLAN

 

A.               
Shares of the Company’s Common Stock shall be available for issuance under the Plan and shall be drawn from either
the Company’s authorized but unissued shares of Common Stock or from reacquired shares of Common Stock, including shares
repurchased by the Company on the open market. The maximum number of shares of Common Stock which may be issued over the term of
the Plan, as amended and restated, shall not exceed 24,190,000
shares, subject to adjustment from time to time in accordance with the provisions of this Section V. The total number of shares
available under the Plan, as amended and restated, as of March 28, 2017
is 15,274,576. This amount consists of 13,676,486
shares reserved for awards already issued, 598,080 shares
of Common Stock available for future issuance under the Plan, and the increase of 1,000,000
shares of Common Stock authorized by the Board (subject to approval by the Company’s stockholders at the 2017
Annual Stockholders Meeting).

 

B.                
In no event shall the number of shares of Common Stock for which any one individual participating in the Plan may receive
options, separately exercisable stock appreciation rights and direct stock issuances and RSUs exceed 1,500,000 shares of Common
Stock in the aggregate in any calendar year. For purposes of such limitation, however, no stock options granted prior to the date
the Common Stock was first registered under Section 12 of the 1934 Act (the “Section 12(g) Registration Date”) shall
be taken into account.

 

C.                
Should an outstanding option under this Plan expire or terminate for any reason prior to exercise in full, the shares subject
to the portion of the option not so exercised shall be available for subsequent option grant or direct stock issuances or RSUs
under the Plan. Unvested shares issued under the Plan and subsequently repurchased by the Company, at the original issue price
paid per share, pursuant to the Company’s repurchase rights under the Plan, or shares underlying terminated RSUs, shall be
added back to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for
reissuance through one or more subsequent option grants or direct stock issuances or RSUs under the Plan. However, shares subject
to an award under the Plan may not again be made available for issuance under the Plan if such shares are: (i) shares that were
subject to a stock-settled stock appreciation right and were not issued upon the net settlement or net exercise of such stock appreciation
right, (ii) shares used to pay the exercise price of an option, (iii) shares delivered to or withheld by the Company to pay the
withholding taxes related an award, or (iv) shares repurchased on the open market with the proceeds of an option exercise. Shares
of Common Stock subject to any option surrendered for an appreciation distribution under Section IV of Article Two or Section IV
of Article Four shall not be available for subsequent issuance under the Plan.

 

    4 

     

    

D.               
In the event any change is made to the Common Stock issuable under the Plan by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without
receipt of consideration, then appropriate adjustments shall be made to (i) the maximum number and/or class of securities issuable
under the Plan, (ii) the maximum number and/or class of securities for which any one individual participating in the Plan may be
granted stock options, separately exercisable stock appreciation rights, and direct stock issuances and RSUs under the Plan from
and after the Section 12(g) Registration Date, (iii) the number and/or class of securities and price per share in effect under
each outstanding option and stock appreciation right under the Plan, (iv) the number and/or class of securities in effect under
each outstanding direct stock issuance and RSU under the Plan, and (v) the number and/or class of securities for which automatic
option grants are subsequently to be made per non-employee Board member under the Automatic Option Grant Program. The purpose of
such adjustments shall be to preclude the enlargement or dilution of rights and benefits under the Plan.

 

E.                
The fair market value per share of Common Stock on any relevant date under the Plan shall be determined in accordance with
the following provisions:

 

(i)       If
the Common Stock is not at the time listed or admitted to trading on any national securities exchange but is traded in the over-the-counter
market, the fair market value shall be the mean between the highest bid and lowest asked prices (or, if such information is available,
the closing selling price) per share of Common Stock on the date in question in the over-the-counter market, as such prices are
reported by the National Association of Securities Dealers through the Nasdaq National Market, the Nasdaq Global Select Market
or any successor system. If there are no reported bid and asked prices (or closing selling price) for the Common Stock on the date
in question, then the mean between the highest bid price and lowest asked price (or the closing selling price) on the last preceding
date for which such quotations exist shall be determinative of fair market value.

 

(ii)       If
the Common Stock is at the time listed or admitted to trading on any national securities exchange, then the fair market value shall
be the closing selling price per share of Common Stock on the date in question on the securities exchange determined by the Plan
Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions
on such exchange. If there is no reported sale of Common Stock on the exchange on the date in question, then the fair market value
shall be the closing selling price on the exchange on the last preceding date for which such quotation exists.

 

    5 

     

    

(iii)       If
the Common Stock is at the time neither listed nor admitted to trading on any securities exchange nor traded in the over-the-counter
market, then the fair market value shall be determined by the Plan Administrator after taking into account such factors as the
Plan Administrator shall deem appropriate.

 

VI.       MINIMUM
VESTING

 

Notwithstanding
any other provision of this Plan to the contrary, in no event shall any award granted pursuant to this Plan vest prior to the
twelve (12)-month anniversary of the date of grant, other than in connection with the grantee’s death or permanent disability
or, to the extent permitted hereunder, in connection with a Change in Control (provided that this limitation shall not apply with
up to five percent (5%) of the shares of Common Stock available for issuance under this Plan following approval of the Plan at
the Company’s 2017 Annual Stockholders Meeting). For the avoidance of doubt, the Plan Administrator may not accelerate the
vesting of any awards in violation of this provision.

 

VI.       MINIMUM
HOLDING PERIOD

 

All
shares of Common Stock issued under this Plan shall be subject to a minimum holding period of twelve (12) months (or, if later,
when the requirements under the Company’s share ownership guidelines are satisfied), provided that nothing in this Section
shall prohibit the disposition of Common Stock in connection with a Change in Control.

 

Article
Two

DISCRETIONARY OPTION GRANT PROGRAM

 

I.                  
TERMS AND CONDITIONS OF OPTIONS

 

Options granted pursuant to this Article Two
shall be authorized by action of the Plan Administrator and may, at the Plan Administrator’s discretion, be either Incentive
Options or non-statutory options. Individuals who are not Employees may only be granted non-statutory options under this Article
Two. Each option granted shall be evidenced by one or more instruments in the form approved by the Plan Administrator. Each such
instrument shall, however, comply with the terms and conditions specified below, and each instrument evidencing an Incentive Option
shall, in addition, be subject to the applicable provisions of Section II of this Article Two.

 

A.               
Option Price.

 

1.                 
The option price per share shall be fixed by the Plan Administrator. In no event, however, shall the option price per share
be less than one hundred percent (100%) of the fair market value per share of Common Stock on the date of the option grant.

 

2.                 
The option price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section
IV of this Article Two and the instrument evidencing the grant, be payable through one of the following methods (or a combination
thereof):

 

    6 

     

    

(i)       full
payment in cash or check drawn to the Company’s order;

 

(ii)       full
payment in shares of Common Stock held by the optionee for the requisite period necessary to avoid a charge to the Company’s
earnings for financial reporting purposes and valued at fair market value on the Exercise Date (as such term is defined below);

 

(iii)       full
payment through a combination of shares of Common Stock held by the optionee for the requisite period necessary to avoid a charge
to the Company’s earnings for financial reporting purposes and valued at fair market value on the Exercise Date and cash
or cash equivalent;

 

(iv)       full
payment through a broker-dealer sale and remittance procedure pursuant to which the optionee (I) shall provide irrevocable written
instructions to a designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out
of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate option price payable for the purchased
shares plus all applicable Federal and State income and employment taxes required to be withheld by the Company in connection with
such purchase and (II) shall provide written directives to the Company to deliver the certificates for the purchased shares directly
to such brokerage firm in order to complete the sale transaction; or

 

(v)       such
other method as permitted by the Plan Administrator.

 

For purposes of this subparagraph 2, the
Exercise Date shall be the date on which written notice of the option exercise is delivered to the Company. Except to the extent
the sale and remittance procedure is utilized in connection with the exercise of the option, payment of the option price for the
purchased shares must accompany such notice.

 

B.                
Term and Exercise of Options.

 

Each option granted under this Article Two
shall be exercisable at such time or times, during such period, and for such number of shares as shall be determined by the Plan
Administrator and set forth in the instrument evidencing the option grant. No such option, however, shall have a maximum term in
excess of ten (10) years from the grant date. During the lifetime of the optionee, the option, together with any stock appreciation
rights pertaining to such option, shall be exercisable only by the optionee and shall not be assignable or transferable by the
optionee except for a transfer of the option by will or by the laws of descent and distribution following the optionee’s
death and, for the avoidance of doubt, may not be transferred to a third party for cash or other value. However, the Plan Administrator
shall have the discretion to provide that a non-statutory option may, in connection with the optionee’s estate plan, be assigned
in whole or in part during the optionee’s lifetime either as (i) as a gift to one or more members of optionee’s immediate
family, to a trust in which optionee and/or one or more such family members hold more than fifty percent (50%) of the beneficial
interest or an entity in which more than fifty percent (50%) of the voting interests are owned by optionee and/or one or more such
family members, or (ii) pursuant to a domestic relations order. The assigned portion shall be exercisable only by the person or
persons who acquire a proprietary interest in the option pursuant to such assignment. The terms applicable to the assigned portion
shall be the same as those in effect for this option immediately prior to such assignment and shall be set forth in such documents
issued to the assignee as the Plan Administrator may deem appropriate.

 

    7 

     

    

C.                
Termination of Service.

 

1.                 
Except to the extent otherwise provided pursuant to Section V of this Article Two or pursuant to an applicable award agreement,
the following provisions shall govern the exercise period applicable to any options held by the optionee at the time of cessation
of Service or death.

 

(i)       Should
the optionee cease to remain in Service for any reason other than death or permanent disability, then the period for which each
outstanding option held by such optionee is to remain exercisable shall be limited to the three (3)-month period following the
date of such cessation of Service. However, should optionee die during the three (3)-month period following his or her cessation
of Service, the personal representative of the optionee’s estate or the person or persons to whom the option is transferred
pursuant to the optionee’s will or in accordance with the laws of descent and distribution shall have a twelve (12)-month
period following the date of the optionee’s death during which to exercise such option.

 

(ii)       In
the event such Service terminates by reason of permanent disability (as defined in Section 22(e)(3) of the Internal Revenue Code),
then the period for which each outstanding option held by the optionee is to remain exercisable shall be limited to the twelve
(12)-month period following the date of such cessation of Service.

 

(iii)       Should
the optionee, after completing five (5) full years of Service, die while in Service, then the exercisability of each of his or
her outstanding options shall automatically accelerate so that each such option shall become fully exercisable with respect to
the total number of shares of Common Stock at the time subject to such option and may be exercised for all or any portion of such
shares. The personal representative of the optionee’s estate or the person or persons to whom the option is transferred pursuant
to the optionee’s will or in accordance with the laws of descent and distribution shall have a twelve (12)-month period following
the date of the optionee’s death during which to exercise such option.

 

(iv)       In
the event such Service terminates by reason of death prior to the optionee obtaining five (5) full years of Service, then the period
for which each outstanding vested option held by the optionee at the time of death shall be exercisable by the optionee’s
estate or the person or persons to whom the option is transferred pursuant to the optionee’s will shall be limited to the
twelve (12)-month period following the date of the optionee’s death.

 

(v)       Under
no circumstances, however, shall any such option be exercisable after the specified expiration date of the option term.

 

(vi)       Each
such option shall, during such limited exercise period, be exercisable for any or all of the shares for which the option is exercisable
on the date of the optionee’s cessation of Service. Upon the expiration of such limited exercise period or (if earlier) upon
the expiration of the option term, the option shall terminate and cease to be exercisable. However, each outstanding option shall
immediately terminate and cease to remain outstanding, at the time of the optionee’s cessation of Service, with respect to
any shares for which the option is not otherwise at that time exercisable or in which the optionee is not otherwise vested.

 

    8 

     

    

(vii)       Should
(i) the optionee’s Service be terminated for misconduct (including, but not limited to, any act of dishonesty, willful misconduct,
fraud or embezzlement) or (ii) the optionee make any unauthorized use or disclosure of confidential information or trade secrets
of the Company or its parent or subsidiary corporations, then in any such event all outstanding options held by the optionee under
this Article Two shall terminate immediately and cease to be exercisable.

 

2.                 
The Plan Administrator shall have complete discretion, exercisable either at the time the option is granted or at any time
while the option remains outstanding, to permit one or more options held by the optionee under this Article Two to be exercised,
during the limited period of exercisability provided under subparagraph 1 above, not only with respect to the number of shares
for which each such option is exercisable at the time of the optionee’s cessation of Service but also with respect to one
or more subsequent installments of purchasable shares for which the option would otherwise have become exercisable had such cessation
of Service not occurred.

 

3.                 
For purposes of the foregoing provisions of this Section I.C (and for all other purposes under the Plan):

 

(i)       The
optionee shall be deemed to remain in the Service of the Company for so long as such individual renders services on a periodic
basis to the Company (or any parent or subsidiary corporation) in the capacity of an Employee, a non-employee member of the board
of directors or an independent consultant or advisor, unless the agreement evidencing the applicable option grant specifically
states otherwise.

 

(ii)       The
optionee shall be considered to be an Employee for so long as such individual remains in the employ of the Company or one
or more of its parent or subsidiary corporations, subject to the control and direction of the employer entity not only as to the
work to be performed but also as to the manner and method of performance.

 

D.               
Stockholder Rights.

 

An optionee shall have no stockholder rights
with respect to any shares covered by the option until such individual shall have exercised the option and paid the option price
for the purchased shares.

 

E.                
No Repricing.

 

No
option or stock appreciation right may be repriced, regranted through cancellation, including cancellation in exchange for cash
or other awards, or otherwise amended to reduce its option price or exercise price (other than with respect to adjustments made
in connection with a transaction or other change in the Company’s capitalization as permitted under this Plan) without the
approval of the stockholders of the Company. 

 

    9 

     

    

F.                 
Repurchase Rights.

 

The shares of Common Stock acquired upon
the exercise of options granted under this Article Two may be subject to repurchase by the Company in accordance with the following
provisions:

 

1.       The
Plan Administrator shall have the discretion to grant options which are exercisable for unvested shares of Common Stock under this
Article Two. Should the optionee cease Service while holding such unvested shares, the Company shall have the right to repurchase
any or all those unvested shares at the option price paid per share. The terms and conditions upon which such repurchase right
shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares)
shall be established by the Plan Administrator and set forth in the instrument evidencing such repurchase right.

 

2.       All
of the Company’s outstanding repurchase rights shall automatically terminate, and all shares subject to such terminated rights
shall immediately vest in full, upon the occurrence of any Corporate Transaction under Section III of this Article Two, except
to the extent: (i) any such repurchase right is expressly assigned to the successor corporation (or parent thereof) in connection
with the Corporate Transaction or (ii) such termination is precluded by other limitations imposed by the Plan Administrator at
the time the repurchase right is issued.

 

3.       The
Plan Administrator shall have the discretionary authority, exercisable either before or after the optionee’s cessation of
Service, to cancel the Company’s outstanding repurchase rights with respect to one or more shares purchased or purchasable
by the optionee under this Discretionary Option Grant Program and thereby accelerate the vesting of such shares in whole or in
part at any time.

 

II.               
INCENTIVE OPTIONS

 

The terms and conditions specified below shall
be applicable to all Incentive Options granted under this Article Two. Incentive Options may only be granted to individuals who
are Employees of the Company. Options which are specifically designated as “non-statutory” options when issued under
the Plan shall not be subject to such terms and conditions.

 

A.               
Dollar Limitation. The aggregate fair market value (determined as of the respective date or dates of grant)
of the Common Stock for which one or more options granted to any Employee under this Plan (or any other option plan of the Company
or its parent or subsidiary corporations) may for the first time become exercisable as incentive stock options under the Federal
tax laws during any one calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee
holds two or more such options which become exercisable for the first time in the same calendar year, the foregoing limitation
on the exercisability of such options as incentive stock options under the Federal tax laws shall be applied on the basis of the
order in which such options are granted. Should the number of shares of Common Stock for which any Incentive Option first becomes
exercisable in any calendar year exceed the applicable One Hundred Thousand Dollar ($100,000) limitation, then that option may
nevertheless be exercised in such calendar year for the excess number of shares as a non-statutory option under the Federal tax
laws.

 

    10 

     

    

B.                
10% Stockholder. If any individual to whom an Incentive Option is granted is the owner of stock (as determined
under Section 424(d) of the Internal Revenue Code) possessing 10% or more of the total combined voting power of all classes of
stock of the Company or any one of its parent or subsidiary corporations, then the option price per share shall not be less than
one hundred and ten percent (110%) of the fair market value per share of Common Stock on the grant date, and the option term shall
not exceed five (5) years, measured from the grant date.

 

C.                
Termination of Employment. Any portion of an Incentive Option that remains outstanding (by reason of the optionee
remaining in the Service of the Company, pursuant to the Plan Administrator’s exercise of discretion under Section V of this
Article Two, or otherwise) more than 3 months following the date an optionee ceases to be an Employee of the Company shall thereafter
be exercisable as a non-statutory option under federal tax laws.

 

Except as modified by the preceding provisions
of this Section II, the provisions of Articles One, Two and Five of the Plan shall apply to all Incentive Options granted hereunder.

 

III.            
CORPORATE TRANSACTIONS/CHANGES IN CONTROL

 

A.               
For purposes of this Section III (and for all other purposes under the Plan), a Corporate Transaction shall be deemed to
occur in the event of:

 

(1)       a
merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which
is to change the State of the Company’s incorporation,

 

(2)       the
sale, transfer or other disposition of all or substantially all of the assets of the Company in liquidation or dissolution of the
Company, or

 

(3)       any
reverse merger in which the Company is the surviving entity but in which securities possessing more than fifty percent (50%) of
the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different
from the persons holding those securities immediately prior to such merger.

 

The exercisability of each option outstanding
under this Article Two that was granted before April 3, 2017 shall automatically accelerate so that each such option shall, immediately
prior to the specified effective date for the Corporate Transaction, become fully exercisable with respect to the total number
of shares of Common Stock at the time subject to such option and may be exercised for all or any portion of such shares.

 

B.                
Immediately after the consummation of the Corporate Transaction, all outstanding options under this Article Two shall fully
vest, terminate and cease to be outstanding, except to the extent continued or assumed (as applicable) by the Company or the successor
corporation or its parent company. The Plan Administrator shall have complete discretion to provide, on such terms and conditions
as it sees fit, for a cash payment to be made to any optionee on account of any option terminated in accordance with this paragraph,
in an amount equal to the excess (if any) of (A) the fair market value of the shares subject to the option as of the date of the
Corporate Transaction, over (B) the aggregate exercise price of the option.

 

    11 

     

    

C.                
Each outstanding option under this Article Two which is assumed in connection with the Corporate Transaction or is otherwise
to continue in effect shall be appropriately adjusted, immediately after such Corporate Transaction, to apply and pertain to the
number and class of securities which would have been issued to the option holder, in consummation of such Corporate Transaction,
had such person exercised the option immediately prior to such Corporate Transaction. Appropriate adjustments shall also be made
to the option price payable per share, provided the aggregate option price payable for such securities shall remain the
same. In addition, the class and number of securities available for issuance under the Plan following the consummation of the Corporate
Transaction shall be appropriately adjusted. Any such options that are so continued or assumed in connection with a Corporate Transaction
shall be treated as follows: if the grantee’s employment is terminated
by the Company without Cause or the grantee resigns due to a Constructive Termination, in either case within the ninety (90) day
period preceding or the two (2) year period following the Corporate Transaction, the exercisability of such option shall automatically
accelerate, and the Company’s outstanding repurchase rights under this Article Two shall immediately terminate; provided,
however, that if the Company, the acquiror or successor refuses to continue (or, as applicable, assume) the option in connection
with the Corporate Transaction, the exercisability of such option under this Article Two shall automatically accelerate,
and the Company’s outstanding repurchase rights under this Article Two shall immediately terminate upon the occurrence of
such Corporate Transaction.

 

D.               
The grant of options under this Article Two shall in no way affect the right of the Company to adjust, reclassify, reorganize
or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or
any part of its business or assets.

 

E.                
In the event of a Change in Control: (1) options granted under
this Article Two prior to May 23, 2016 shall be subject to the provisions of the Plan as in effect prior to such date, and (2)
options granted on or after May 23, 2016 shall be treated as follows: if the grantee’s employment is terminated by the Company
without Cause or the grantee resigns due to a Constructive Termination, in either case within the ninety (90) day period preceding
or the two (2) year period following the Change in Control, the exercisability of such option shall automatically accelerate, and
the Company’s outstanding repurchase rights under this Article Two shall immediately terminate; provided, however, that if
the acquiror or successor refuses to assume the option in connection with the Change in Control, the exercisability of such
option under this Article Two shall automatically accelerate, and the Company’s outstanding repurchase rights under this
Article Two shall immediately terminate upon the occurrence of such
Change in Control. In the event that the acquiror or successor refuses to assume the option in connection with the Change in Control,
the Plan Administrator shall have complete discretion to provide, on such terms and conditions as it sees fit, for a cash payment
to be made to any optionee on account of any option terminated in accordance with this paragraph, in an amount equal to the excess
(if any) of (A) the fair market value of the shares subject to the option as of the date of the Change in Control, over (B) the
aggregate exercise price of the option

 

    12 

     

    

F.                 
For purposes of this Section III (and for all other purposes under the Plan), a Change in Control shall be deemed to occur
in the event:

 

(1)       any
person or related group of persons (other than the Company or a person that directly or indirectly controls, is controlled by,
or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule
13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding securities pursuant to a tender or exchange offer made directly to the Company’s stockholders; or

 

(2)       there
is a change in the composition of the Board over a period of twenty-four (24) consecutive months or less such that a majority of
the Board members (rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership,
to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have
been elected or nominated for election as Board members during such period by at least two-thirds of the Board members described
in clause (A) who were still in office at the time such election or nomination was approved by the Board.

 

G.               
All options accelerated in connection with the Corporate Transaction or Change in Control (either
at the time of the Corporate Transaction or Change in Control or as otherwise provided in this Section III) shall remain
fully exercisable until the expiration or sooner termination of the option term.

 

H.               
The portion of any Incentive Option accelerated under this Section III in connection with a Corporate Transaction or Change
in Control shall remain exercisable as an incentive stock option under the Federal tax laws only to the extent the dollar limitation
of Section II of this Article Two is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of
such option shall be exercisable as a non-statutory option under the Federal tax laws.

 

I.                  
For purposes of this Article Two and for purposes of Article
Three:

 

1.                 
“Cause” means, unless otherwise provided in the applicable
award agreement, the Company’s termination of the grantee’s employment for any of the following reasons: (i) failure
or refusal to comply in any material respect with lawful policies, standards or regulations of Company; (ii) a violation of a federal
or state law or regulation applicable to the business of the Company; (iii) conviction or plea of no contest to a felony under
the laws of the United States or any State; (iv) fraud or misappropriation of property belonging to the Company or its affiliates;
(v) a breach in any material respect of the terms of any confidentiality, invention assignment or proprietary information agreement
with the Company or with a former employer, (vi) failure to satisfactorily perform the grantee’s duties after having received
written notice of such failure and at least thirty (30) days to cure such failure, or (vii) misconduct or gross negligence in connection
with the performance of the grantee’s duties.

 

    13 

     

    

2.                 
“Constructive Termination” means, unless otherwise
provided in the applicable award agreement, the grantee’s resignation of employment with the Company within ninety (90) days
of the occurrence of any of the following: (i) a material reduction in the grantee’s responsibilities; (ii) a material reduction
in the grantee’s base salary; or (iii) a relocation of the grantee’s principal office to a location more than 50 miles
from the location of the grantee’s existing principal office. 

 

IV.            
STOCK APPRECIATION RIGHTS

 

A.               
Provided and only if the Plan Administrator determines in its discretion to implement the stock appreciation right provisions
of this Section IV, one or more optionees may be granted the right, exercisable upon such terms and conditions as the Plan Administrator
may establish, to surrender all or part of an unexercised option granted under this Article Two in exchange for a distribution
from the Company in an amount equal to the excess of (i) the fair market value (on the option surrender date) of the number of
shares in which the optionee is at the time vested under the surrendered option (or surrendered portion thereof) over (ii) the
aggregate option price payable for such vested shares. The distribution may be made in shares of Common Stock valued at fair market
value on the option surrender date, in cash, or partly in shares and partly in cash, as the Plan Administrator shall determine
in its sole discretion.

 

B.                
The shares of Common Stock subject to any option surrendered for an appreciation distribution pursuant to this Section IV
shall not be available for subsequent option grant under the Plan.

 

V.               
EXTENSION OF EXERCISE PERIOD

 

The Plan Administrator shall have full power
and authority, exercisable either at the time the option is granted or at any time while the option remains outstanding, to extend
the period of time for which any option granted under this Article Two is to remain exercisable following the optionee’s
cessation of Service or death from the limited period in effect under Section I.C.1 of Article Two to such greater period of time
as the Plan Administrator shall deem appropriate; provided, however, that in no event shall such option be exercisable after
the specified expiration date of the option term.

 

Article
Three

STOCK ISSUANCE PROGRAM

 

I.                  
STOCK ISSUANCE TERMS

 

Shares of Common Stock may be issued under the Stock Issuance
Program through direct and immediate issuances without any intervening option grants. Each such stock issuance shall be evidenced
by a Stock Issuance Agreement which complies with the terms specified below. Shares of Common Stock may also be issued under the
Stock Issuance Program pursuant to restricted stock units (“RSUs”), which are awards granted to a eligible individuals
that entitle them to shares of Common Stock (or cash in lieu thereof) in the future following the satisfaction of vesting conditions
imposed by the Plan Administrator.

 

    14 

     

    

A.               
Vesting Provisions.

 

1.                 
The Plan Administrator may issue shares of Common Stock under the Stock Issuance which are to vest in one or more installments
over the grantee's period of Service or upon attainment of specified performance objectives. Alternatively, the Plan Administrator
may issue RSUs under the Stock Issuance Program which shall entitle the recipient to receive a specified number of shares of Common
Stock upon the attainment of one or more Service and/or performance goals established by the Plan Administrator. Upon the attainment
of such Service and/or performance goals, fully-vested shares of Common Stock shall be issued in satisfaction of those RSUs.

 

2.                 
Any new, substituted or additional securities or other property (including money paid other than as a regular cash dividend)
issued by reason of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Company’s receipt of consideration, shall be issued or set
aside with respect to the shares of unvested Common Stock granted to a grantee or subject to a grantee’s RSUs, subject to
(i) the same vesting requirements applicable to the grantee's unvested shares of Common Stock or RSUs, and (ii) such escrow arrangements
as the Plan Administrator shall deem appropriate.

 

3.                 
The grantee shall have full stockholder rights with respect to any shares of Common Stock issued to the grantee under the
Stock Issuance Program, whether or not the grantee's interest in those shares is vested. Accordingly, the grantee shall have the
right to vote such shares and to receive any regular cash dividends paid on such shares.

 

4.                 
The grantee shall not have any stockholders rights with respect to any shares of Common Stock subject to an RSU. However,
the Plan Administrator may provide for a grantee to receive one or more dividend equivalents with respect to such shares, entitling
the grantee to all regular cash dividends payable on the shares of Common Stock underlying the RSU, which amounts shall be (i)
subject to the same vesting requirements applicable to the shares of Common Stock underlying the RSU, and (ii) payable upon issuance
of the shares to which such dividend equivalents relate.

 

5.                 
Should the grantee cease to remain in Service while holding one or more unvested shares of Common Stock issued under the
Stock Issuance Program or should the performance objectives not be attained with respect to one or more such unvested shares of
Common Stock, then those shares shall be immediately surrendered to the Company for cancellation, and the grantee shall have no
further stockholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the grantee
for consideration paid in cash, the Company shall repay to the grantee the cash consideration paid for the surrendered shares.

 

6.                 
Except as prohibited by the last sentence of paragraph 1 above,
the Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested shares of
Common Stock which would otherwise occur upon the cessation of the grantee’s Service or the non-attainment of the performance
objectives applicable to those shares. Such waiver shall result in the immediate vesting of the grantee's interest in the shares
of Common Stock as to which the waiver applies. Such waiver may be effected at any time, whether before or after the grantee's
cessation of Service or the attainment or non-attainment of the applicable performance objectives.

 

    15 

     

    

7.                 
Outstanding RSUs under the Stock Issuance Program shall automatically terminate, and no shares of Common Stock shall actually
be issued in satisfaction of those awards, if the Service and/or performance goals established for such awards are not attained.
The Plan Administrator, however, shall, except as prohibited by the
last sentence paragraph 1 above, have the discretionary authority to issue shares of Common Stock in satisfaction of
one or more outstanding RSUs as to which the designated Service and/or performance goals are not attained. Such authority may be
exercised at any time, whether before or after the grantee's cessation of Service or the attainment or non-attainment of the applicable
performance objectives.

 

II.               
CORPORATE TRANSACTION/CHANGE IN CONTROL

 

A.               
All of the Company’s outstanding repurchase rights under the Stock Issuance Program shall terminate automatically,
and all the shares of Common Stock subject to those terminated rights shall immediately vest in full, in the event of any Corporate
Transaction, except to the extent (i) those repurchase rights are to be assigned to the successor corporation (or parent thereof)
in connection with the such Corporate Transaction, or (ii) such accelerated vesting is precluded by other limitations imposed in
the Stock Issuance Agreement, unless the Plan Administrator determines to waive such limitations.

 

B.                
Each award which is assigned in connection with (or is otherwise to continue in effect after) a Corporate Transaction shall
be appropriately adjusted such that it shall apply and pertain to the number and class of securities issued to the grantee in consummation
of the Corporate Transaction with respect to the shares granted to grantee under this Article Three.

 

C.                
In the event of a Change in Control: (1) shares of restricted
stock and RSUs granted under this Article Three prior to May 23, 2016 shall be subject to the provisions of the Plan as in effect
prior to such date, and (2) shares of restricted stock and RSUs granted on or after May 23, 2016 shall be treated as follows: if
the grantee’s employment is terminated by the Company without Cause or the grantee resigns due to a Constructive Termination,
in either case within the ninety (90) day period preceding or the two (2) year period following the Change in Control, the vesting
of such restricted stock and RSUs shall automatically accelerate (and all of the shares of Common Stock subject to such RSUs shall
be issued to grantees), and the Company’s outstanding repurchase rights under this Article Three shall immediately terminate;
provided, however, that if the acquiror or successor refuses to assume the shares of restricted stock or RSUs or substitute an
award of equivalent value (as determined by the Committee in its discretion) in connection with the Change in Control, the vesting
of such restricted stock or RSUs under this Article Three shall automatically accelerate (and all of the shares of Common Stock
subject to such RSUs shall be issued to grantees). To the extent any shares of restricted stock or RSUs vest in whole or in part
based on the achievement of performance criteria, the amount that shall vest in accordance with the proviso to clause (2) of the
immediately-preceding sentence shall vest based on the higher of actual performance goal attainment through the date of the Change
in Control or a prorated amount using target performance and based on the time elapsed in the performance period as of the date
of the Change in Control.

 

    16 

     

    

III.            
STOCKHOLDER RIGHTS

 

A.       Individuals
who are granted shares of Common Stock pursuant to this Article Three shall be the owners of such shares for all purposes while
holding such Common Stock, and may exercise full voting rights with respect to those shares at all times while held by the individuals.
Individuals who have been granted RSUs shall have no voting rights with respect to Common Stock underlying RSUs unless and until
such Common Stock is reflected as issued and outstanding shares on the Company’s stock ledger. 

 

B.       Individuals
who are granted shares of Common Stock pursuant to this Article Three shall not have dividend rights with respect to such shares
prior to the vesting of such shares. However, the Plan Administrator may provide for a grantee to receive one or more dividend
equivalents with respect to such shares, entitling the grantee to all regular cash dividends payable on such shares of Common Stock,
which amounts shall be (i) subject to the same vesting requirements applicable to the shares of Common Stock granted hereunder,
and (ii) payable upon vesting of the shares to which such dividend equivalents relate.

 

IV.            
SHARE ESCROW / LEGENDS

 

Unvested shares may, in the Plan Administrator's
discretion, be held in escrow by the Company until the grantee's interest in such shares vests or may be issued directly to the
grantee with restrictive legends on the certificates evidencing those unvested shares.

 

Article
Four

AUTOMATIC OPTION GRANT PROGRAM

 

I.                  
ELIGIBILITY.

 

The individuals eligible to receive automatic
option grants pursuant to the provisions of this Article Four shall be (i) those individuals who, after the effective date of this
amendment and restatement, first become non-employee Board members, whether through appointment by the Board, election by the Company’s
stockholders, or by continuing to serve as a Board member after ceasing to be employed by the Company, and (ii) those individuals
already serving as non-employee Board members on the effective date of this amendment and restatement. As used herein, a “non-employee”
Board member is any Board member who is not employed by the Company on the date in question.

 

II.               
TERMS AND CONDITIONS OF AUTOMATIC OPTION GRANTS

 

A.               
Grants. Option grants shall be made under this Article Four as follows:

 

1.                 
Each individual who first becomes a non-employee Board member on or after the effective date of this amendment and restatement
shall automatically be granted at such time a non-statutory stock option under the terms and conditions of this Article Four, to
purchase a number shares of Common Stock equal to the product of (i) 60,000, and (ii) a fraction, the numerator of which is the
number of months (rounded to the nearest whole number) remaining between the date such Board member first became a non-employee
Board member and the Company’s next scheduled Annual Stockholders Meeting, and the denominator of which is 12.

 

    17 

     

    

2.                 
Immediately following each Annual Stockholders Meeting of the Company, each individual who is then serving as a non-employee
Board member (except for those individuals first elected to serve as non-employee Board members at such meeting), shall
automatically be granted a non-statutory stock option under this Article Four to acquire 30,000 shares of Common Stock.

 

B.                
Exercise Price. The exercise price per share of each automatic option grant made under this Article
Four shall be equal to one hundred percent (100%) of the fair market value per share of Common Stock on the automatic grant date.

 

C.                
Payment. The exercise price shall be through one of the following methods (or a combination thereof):

 

(1)       payment
in cash or check made payable to the Company’s order; or

 

(2)       full
payment in shares of Common Stock held for the requisite period necessary to avoid a charge to the Company’s reported earnings
and valued at fair market value on the Exercise Date (as such term is defined below); or

 

(3)       full
payment in a combination of shares of Common Stock held for the requisite period necessary to avoid a charge to the Company’s
reported earnings and valued at fair market value on the Exercise Date and cash or check payable to the Company’s order;

 

(4)       full
payment through a sale and remittance procedure pursuant to which the non-employee Board member (I) shall provide irrevocable written
instructions to a designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out
of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased
shares and shall (II) concurrently provide written directives to the Company to deliver the certificates for the purchased shares
directly to such brokerage firm in order to complete the sale transaction; or

 

(5)       such
other method as permitted by the Plan Administrator.

 

For purposes of this subparagraph C, the
Exercise Date shall be the date on which written notice of the option exercise is delivered to the Company. Except to the extent
the sale and remittance procedure specified above is utilized for the exercise of the option, payment of the option price for the
purchased shares must accompany the exercise notice.

 

D.               
Option Term. Each automatic grant under this Article Four shall have a term of ten (10) years measured
from the automatic grant date.

 

    18 

     

    

E.                
 Exercisability.

 

1.                 
Each initial automatic grant made pursuant to Section II.A.1 of this Article Four shall vest and become exercisable over
the period extending from the date of grant to the scheduled date of the next Annual Stockholders Meeting following the grant.
A pro rata portion of such automatic grant shall vest on the last day of each calendar month following the date of grant, with
the final portion vesting on the scheduled date of such Annual Stockholders Meeting.

 

2.                 
Each 30,000 share automatic grant made pursuant to Section II.A.2 of this Article Four shall vest and become exercisable
for 1/12th of the option shares upon the optionee’s completion of each month of Board service over the twelve (12)-month
period measured from the automatic grant date.

 

F.                 
Non-Transferability. During the lifetime of the optionee, each automatic option grant, together with
the limited stock appreciation right pertaining to such option, shall be exercisable only by the optionee, except to the extent
such option or the limited stock appreciation right is assigned or transferred (i) by will or by the laws of descent and distribution
following the optionee’s death, or (ii) during optionee’s lifetime either (A) as a gift in connection with the optionee’s
estate plan to one or more members of optionee’s immediate family, to a trust in which optionee and/or one or more such family
members hold more than fifty percent (50%) of the beneficial interest or to an entity in which more than fifty percent (50%) of
the voting interests are owned by optionee and/or one or more such family members, or (B) pursuant to a domestic relations order.
The portion of any option assigned or transferred during optionee’s lifetime shall be exercisable only by the person or persons
who acquire a proprietary interest in the option pursuant to such assignment. The terms applicable to the assigned portion shall
be the same as those in effect for this option immediately prior to such assignment and shall be set forth in such documents issued
to the assignee as the Plan Administrator may deem appropriate.

 

G.               
Cessation of Board Service.

 

1.                 
Should the optionee cease to serve as a Board member for any reason while holding one or more automatic option grants under
this Article Four, then such optionee shall have the remainder of the ten (10) year term of each such option in which to exercise
each such option for any or all of the shares of Common Stock for which the option is exercisable at the time of such cessation
of Board service. Each such option shall immediately terminate and cease to be outstanding, at the time of such cessation of Board
service, with respect to any shares for which the option is not otherwise at that time exercisable. Upon the expiration of the
ten (10)-year option term, the automatic grant shall terminate and cease to be outstanding in its entirety. Upon the death of the
optionee, whether before or after cessation of Board service, any option held by optionee at the time of optionee’s death
may be exercised, for any or all of the shares of Common Stock for which the option was exercisable at the time of cessation of
Board service by the optionee and which have not been theretofore exercised by the optionee, by the personal representative of
the optionee’s estate or by the person or persons to whom the option is transferred pursuant to the optionee’s will
or in accordance with the laws of descent and distribution. Any such exercise must occur during the reminder of the ten (10) year
term of such option.

 

    19 

     

    
H.               
Stockholder Rights. The holder of an automatic option grant under this Article Four shall have none of the
rights of a stockholder with respect to any shares subject to such option until such individual shall have exercised the option
and paid the exercise price for the purchased shares.

 

III.            
CORPORATE TRANSACTIONS/CHANGES IN CONTROL

 

A.               
In the event of a Corporate Transaction, (1) the exercisability of each option outstanding under this Article Four granted
prior to April 3, 2017 shall automatically accelerate so that each such option shall, immediately prior to the specified effective
date for the Corporate Transaction, become fully exercisable with respect to the total number of shares of Common Stock at the
time subject to such option and may be exercised for all or any portion of such shares, and (2) each option granted under this
Article Four thereafter shall be subject to the same rules specified in Article Two, Section III.

 

B.                
Immediately after the consummation of the Corporate Transaction, all outstanding options under this Article Four shall terminate
and cease to be outstanding, except to the extent assumed by the successor corporation or its parent company. If so provided by
the terms of the Corporate Transaction, the optionee shall receive a cash payment on account of any option terminated in accordance
with this paragraph, in an amount equal to the excess (if any) of (A) the fair market value of the shares subject to the option
as valued pursuant to the Corporate Transaction over (B) the aggregate exercise price of the option.

 

C.                
Each outstanding option under this Article Four which is assumed in connection with the Corporate Transaction or is otherwise
to continue in effect shall be appropriately adjusted, immediately after such Corporate Transaction, to apply and pertain to the
number and class of securities which would have been issued to the option holder, in consummation of such Corporate Transaction,
had such person exercised the option immediately prior to such Corporate Transaction. Appropriate adjustments shall also be made
to the option price payable per share, provided the aggregate option price payable for such securities shall remain the
same. Such option shall be subject to the same rules specified in Article II, Section 4.

 

D.               
In connection with any Change in Control, (1) the exercisability of each option grant made prior to April 3, 2017 and outstanding
at the time under this Article Four shall automatically accelerate so that each such option shall, immediately prior to the specified
effective date for the Change in Control, become fully exercisable with respect to the total number of shares of Common Stock at
the time subject to such option and may be exercised for all or any portion of such shares, and (2) each option granted under this
Article Four thereafter shall be subject to the same rules specified in Article Two, Section III.

 

E.                
The automatic grant of options under this Article Four shall in no way affect the right of the Company to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer
all or any part of its business or assets.

 

    20 

     

    

IV.            
STOCK APPRECIATION RIGHTS

 

A.               
With respect to options granted under the Automatic Option Grant Program prior to March 7, 2006:

 

1.                 
Upon the occurrence of a Hostile Take-Over, the optionee shall have a thirty (30)-day period in which to surrender to the
Company each option held by him or her under this Article Four. The optionee shall in return be entitled to a cash distribution
from the Company in an amount equal to the excess of (i) the Take-Over Price of the shares of Common Stock at the time subject
to each surrendered option (whether or not the option is then exercisable for those shares) over (ii) the aggregate exercise price
payable for such shares. The cash distribution shall be made within five (5) days following the date the option is surrendered
to the Company, and neither the approval of the Plan Administrator nor the consent of the Board shall be required in connection
with the option surrender and cash distribution. Any unsurrendered portion of the option shall continue to remain outstanding and
become exercisable in accordance with the terms of the instrument evidencing such grant. This limited stock appreciation right
shall in all events terminate upon the expiration or sooner termination of the option term and may not be assigned or transferred
by the optionee.

 

2.                 
For purposes of Article Four, the following definitions shall be in effect:

 

(i)       A
Hostile Take-Over shall be deemed to occur in the event any person or related group of persons (other than the Company or
a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly
acquires beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act, as amended) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange
offer made directly to the Company’s stockholders which the Board does not recommend such stockholders to accept.

 

(ii)       The
Take-Over Price per share shall be deemed to be equal to the fair market value per share on the option surrender date.

 

B.                
With respect to each option granted under the Automatic Option Grant Program on and after March 7, 2006, each optionee shall
have the right to surrender all or part of the option (to the extent not then exercised) in exchange for a distribution from the
Company in an amount equal to the excess of (i) the fair market value (on the option surrender date) of the number of shares in
which the optionee is at the time vested under the surrendered option (or surrendered portion thereof) over (ii) the aggregate
option price payable for such vested shares. The distribution shall be made in shares of Common Stock valued at fair market value
on the option surrender date.

 

C.                
The shares of Common Stock subject to any option surrendered for an appreciation distribution pursuant to this Section IV
shall not be available for subsequent option grant under the Plan.

 

    21 

     

    

Article
Five

SECTION 162(M) PERFORMANCE GOALS

 

I.                  
GENERAL

 

The Plan
Administrator may establish performance criteria and level of achievement versus such criteria that shall determine the number
of shares of Common Stock or RSUs to be granted, retained, vested, issued or issuable under or in settlement of or the amount payable
pursuant to an award hereunder, which criteria may be based on Qualifying Performance Criteria (as defined below) or other standards
of financial performance and/or personal performance evaluations. In addition, the Plan Administrator may specify that an award
or a portion of an award is intended to satisfy the requirements for “performance-based compensation” under Section
162(m) of the Code, provided that the performance criteria for such award or portion of an award that is intended by the Plan Administrator
to satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code shall be a measure
based on one or more Qualifying Performance Criteria selected by the Committee and specified at the time the award is granted.
The Committee shall certify the extent to which any Qualifying Performance Criteria have been satisfied, and the amount payable
as a result thereof, prior to payment, settlement or vesting of any award that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code. Notwithstanding satisfaction of any performance goals, the number of shares
of Common Stock issued under or the amount paid under an award may, to the extent specified in the applicable award agreement,
be reduced by the Committee on the basis of such further considerations as the Committee in its sole discretion shall determine.
The Committee may not delegate its duties under this Article Five to any other person with respect to any award that is intended
to satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code.

 

II.               
QUALIFYING PERFORMANCE CRITERIA

 

For purposes
of this Plan, the term “Qualifying Performance Criteria” shall mean any one or more of the following performance criteria,
either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit or subsidiary,
either individually, alternatively or in any combination, and measured either quarterly, annually or cumulatively over a period
of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison
group, in each case as specified by the Committee: (i) revenue growth; (ii) earnings before interest, taxes, depreciation and amortization;
(iii) earnings before interest, taxes and amortization; (iv) operating income; (v) pre- or after-tax income; (vi) cash flow; (vii)
cash flow per share; (viii) net income; (ix) earnings per share; (x) return on equity; (xi) return on invested capital; (xii) return
on assets; (xiii) economic value added (or an equivalent metric); (xiv) share price performance; (xv) total shareholder return;
(xvi) improvement in or attainment of expense levels; (xvii) improvement in or attainment of working capital levels; (xviii) debt
reduction; (xix) progress for advancing drug discovery and/or drug development programs; or (xx) implementation, completion or
attainment of measurable objectives with respect to research, development, manufacturing, commercialization, products or projects,
or production volume levels. To the extent consistent with Section 162(m) of the Code, the Committee (A) shall appropriately adjust
any evaluation of performance under a Qualifying Performance Criteria to eliminate the effects of charges for restructurings, discontinued
operations, extraordinary items and all items of gain, loss or expense determined to be extraordinary or unusual in nature or related
to the acquisition or disposal of a segment of a business or related to a change in accounting principle all as determined in accordance
with standards established by opinion No. 30 of the Accounting Principles Board (APB Opinion No. 30) or other applicable or successor
accounting provisions, as well as the cumulative effect of accounting changes, in each case as determined in accordance with generally
accepted accounting principles or identified in the Company’s financial statements or notes to the financial statements,
and (B) may appropriately adjust any evaluation of performance under a Qualifying Performance Criteria to exclude any of the following
events that occurs during a performance period: (i) asset write-downs, (ii) litigation, claims, judgments or settlements, (iii)
the effect of changes in tax law or other such laws or provisions affecting reported results, (iv) the adverse effect of work stoppages
or slowdowns, (v) accruals for reorganization and restructuring programs and (vi) accruals of any amounts for payment under this
Plan or any other compensation arrangement maintained by the Company. 

 

    22 

     

    

Article
Six

MISCELLANEOUS

 

I.                  
AMENDMENT OF THE PLAN

 

The Board shall have complete and exclusive
power and authority to amend or modify the Plan in any or all respects whatsoever. However, no such amendment or modification shall,
without the consent of the holders, adversely affect rights and obligations with respect to options at the time outstanding under
the Plan. In addition, certain amendments may require stockholder approval pursuant to applicable laws or regulations.

 

II.               
TAX WITHHOLDING

 

A.               
The Company’s obligation to deliver shares or cash upon the exercise of stock options or stock appreciation rights
or upon the grant or vesting of direct stock issuances or RSUs under the Plan shall be subject to the satisfaction of all applicable
Federal, State and local income and employment tax withholding requirements.

 

B.                
The Plan Administrator may, in its discretion and upon such terms and conditions as it may deem appropriate, provide any
or all holders of outstanding options or stock issuances under the Plan (other than the automatic option grants under Article Four)
with the election to have the Company withhold, from the shares of Common Stock otherwise issuable upon the exercise or vesting
of such awards, a whole number of such shares with an aggregate fair market value equal to the minimum amount necessary (or, if
determined by the Plan Administrator in its discretion and to the extent adverse accounting treatment does not result, at the maximum
applicable individual statutory tax rates) to satisfy the Federal, State and local income and employment tax withholdings (the
“Taxes”) incurred in connection with the acquisition or vesting of such shares. In lieu of such direct withholding,
one or more grantees may also be granted the right to deliver whole shares of Common Stock to the Company in satisfaction of such
Taxes. Any withheld or delivered shares shall be valued at their fair market value on the applicable determination date for such
Taxes.

 

    23 

     

    

III.            
EFFECTIVE DATE AND TERM OF PLAN

 

A.               
The Plan, as amended and restated, shall be effective on the date specified in the Board of Directors resolution adopting
the Plan. Except as provided below, each option issued and outstanding under the Plan immediately prior to such effective date
shall continue to be governed solely by the terms and conditions of the agreement evidencing such grant, and nothing in this restatement
of the Plan shall be deemed to affect or otherwise modify the rights or obligations of the holders of such options with respect
to their acquisition of shares of Common Stock thereunder. The Plan Administrator shall, however, have full power and authority,
under such circumstances as the Plan Administrator may deem appropriate (but in accordance with Section I of this Article Five),
to extend one or more features of this amendment and restatement to any options outstanding on the effective date.

 

B.                
Unless sooner terminated in accordance with the other provisions of this Plan, the Plan shall terminate upon the earlier
of (i) ten years following the date this amendment and restatement of the Plan is approved by the Board or (ii) the date on which
all shares available for issuance under the Plan shall have been issued or cancelled pursuant to the exercise, surrender or cash-out
of the options granted hereunder. If the date of termination is determined under clause (i) above, then any options or stock issuances
outstanding on such date shall continue to have force and effect in accordance with the provisions of the agreements evidencing
those awards.

 

C.                
Options may be granted with respect to a number of shares of Common Stock in excess of the number of shares at the time
available for issuance under the Plan, provided each granted option is not to become exercisable, in whole or in part, at
any time prior to stockholder approval of an amendment authorizing a sufficient increase in the number of shares issuable under
the Plan.

 

IV.            
USE OF PROCEEDS

 

Any cash proceeds received by the Company
from the sale of shares pursuant to options or stock issuances granted under the Plan shall be used for general corporate purposes.

 

V.               
REGULATORY APPROVALS

 

A.               
The implementation of the Plan, the granting of any option hereunder, and the issuance of stock (i) upon the exercise or
surrender of any option or (ii) under the Stock Issuance Program shall be subject to the procurement by the Company of all approvals
and permits required by regulatory authorities having jurisdiction over the Plan, the options granted under it and the stock issued
pursuant to it.

 

B.                
No shares of Common Stock or other assets shall be issued or delivered under the Plan unless and until there shall have
been compliance with all applicable requirements of Federal and state securities laws, including (to the extent required) the filing
and effectiveness of the Form S-8 registration statement for the shares of Common Stock issuable under the Plan, and all applicable
listing requirements of any stock exchange (or the Nasdaq National Market, the Nasdaq Global Select Market or any successor system,
if applicable) on which Common Stock is then trading.

 

    24 

     

    

VI.            
NO EMPLOYMENT/SERVICE RIGHTS

 

Neither the action of the Company in establishing
or restating the Plan, nor any action taken by the Plan Administrator hereunder, nor any provision of the Plan shall be construed
so as to grant any individual the right to remain in the employ or service of the Company (or any parent or subsidiary corporation)
for any period of specific duration, and the Company (or any parent or subsidiary corporation retaining the services of such individual)
may terminate such individual’s employment or service at any time and for any reason, with or without cause.

 

VII.         
MISCELLANEOUS PROVISIONS

 

A.               
Except to the extent otherwise expressly provided in the Plan, the right to acquire Common Stock or other awards under the
Plan may not be assigned, encumbered or otherwise transferred by any grantee.

 

B.                
Awards issued under the Plan shall be subject to any clawback policy of the Company as in effect from time-to-time.

 

C.                
The provisions of the Plan relating to the exercise of options and the issuance and/or vesting of shares shall be governed
by the laws of the State of Delaware without resort to that state’s conflict-of-laws provisions, as such laws are applied
to contracts entered into and performed in such State.

 

D.               
The Plan is intended to be an unfunded plan. Grantees are and shall at all times be general creditors of the Company with
respect to their awards. If the Committee or the Company chooses to set aside funds in a trust or otherwise for the payment of
awards under the Plan, such funds shall at all times be subject to the claims of the creditors of the Company in the event of its
bankruptcy or insolvency.

 

25

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