Document:

Exhibit 10.1

 

ONCONOVA THERAPEUTICS, INC.

 

2021 INCENTIVE COMPENSATION PLAN

 

The purpose of the Onconova Therapeutics, Inc.
2021 Incentive Compensation Plan (the “Plan”) is to provide employees of Onconova Therapeutics, Inc. (the “Company”)
and its subsidiaries, certain consultants and advisors who perform services for the Company or its subsidiaries, and non-employee
members of the Board of Directors of the Company with the opportunity to receive grants of incentive stock options, nonqualified stock
options, stock appreciation rights, stock awards, stock units and other stock-based awards.

 

The Plan is a successor to the Onconova Therapeutics, Inc.
2018 Omnibus Incentive Compensation Plan, as amended and restated (the “2018 Plan”), which was a successor to the Onconova
Therapeutics, Inc. 2013 Equity Incentive Plan (together with the 2018 Plan, the “Prior Plans”). No additional
grants have been or will be made under the 2018 Plan on and after the Effective Date. Outstanding grants under the Prior Plans shall continue
in effect according to their terms, and the shares with respect to outstanding grants under the applicable Prior Plan shall be issued
or transferred under the applicable Prior Plan.

 

The Company believes that the Plan will encourage
the participants to contribute materially to the growth of the Company, thereby benefitting the Company’s stockholders, and will
align the economic interests of the participants with those of the stockholders.

 

Section 1.     Definitions

 

The following terms shall have the meanings set
forth below for purposes of the Plan:

 

(a)            “2018
Plan” shall have the meaning given to it in the preamble.

 

(b)            “Award”
shall mean an Option, SAR, Stock Award, Stock Unit or Other Stock-Based Award granted under the Plan.

 

(c)            “Award
Agreement” shall mean the written agreement that sets forth the terms and conditions of an Award, including all amendments thereto.

 

(d)            “Board”
shall mean the Board of Directors of the Company.

 

(e)            “Cause”
shall have the meaning given to that term in any written employment agreement, offer letter, consulting agreement or severance agreement
between the Employer and the Participant, or if no such agreement exists or if such term is not defined therein, and unless otherwise
defined in the Award Agreement, “Cause” shall mean a finding by the Committee of conduct involving one or more of the
following: (i) the substantial and continuing failure of the Participant, after notice thereof, to render services to the Company
or its subsidiaries in accordance with the terms or requirements of his or her employment, engagement as a Non-Employee Director or a
Key Advisor; (ii) disloyalty, gross negligence, willful misconduct, dishonesty or breach of fiduciary duty to the Company or a Subsidiary;
(iii) the commission of an act of embezzlement or fraud; (iv) deliberate disregard of the rules or policies of the Company
or a Subsidiary which results in direct or indirect loss, damage or injury to the Company or a Subsidiary; (v) the unauthorized disclosure
of any trade secret or confidential information of the Company or a Subsidiary; or (vi) the Participant’s breach of any written
non-competition, non-solicitation, invention assignment or confidentiality agreement between the Participant and the Company or any of
its subsidiaries.

 

(f)            “CEO”
shall mean the Chief Executive Officer of the Company.

 

     

     

    

 

(g)            A
 “Change in Control” shall be deemed to have occurred if:

 

(i)            the
acquisition, directly or indirectly, by a “person” (within the meaning of Section 13(d)(3) of the Exchange Act)
(a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
more than 50% of the combined voting power of the voting securities of the Company entitled to vote generally in the election of directors
(the “Voting Securities”); provided, however, that the following acquisitions of Voting Securities shall not constitute
a Change in Control:  (A) any acquisition by or from the Company or any of its subsidiaries, or by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any of its subsidiaries, (B) any acquisition by any underwriter in any
firm commitment underwriting of securities to be issued by the Company, or (C) any acquisition by any corporation (or other entity)
if, immediately following such acquisition, 50% or more of the then outstanding shares of common stock (or other equity unit) of such
corporation (or other entity) and the combined voting power of the then outstanding voting securities of such corporation (or other entity),
are beneficially owned, directly or indirectly, by all or substantially all of the individuals or entities who, immediately prior to such
acquisition, were the beneficial owners of the then outstanding shares of Common Stock and the Voting Securities in substantially the
same proportions, respectively, as their ownership immediately prior to the acquisition of the shares of Common Stock and Voting Securities;
or

 

(ii)            the
consummation of the sale or other disposition of all or substantially all of the assets of the Company, other than to a wholly-owned subsidiary
of the Company or to a holding company of which the Company is a direct or indirect wholly owned subsidiary prior to such transaction;
or

 

(iii)            the
consummation of a reorganization, merger or consolidation of the Company, other than a reorganization, merger or consolidation, which
would result in the Voting Securities outstanding immediately prior to the transaction continuing to represent (whether by remaining outstanding
or by being converted to voting securities of the surviving entity) 65% or more of the Voting Securities or the voting power of the voting
securities of such surviving entity outstanding immediately after such transaction; or

 

(iv)            the
consummation of a plan of complete liquidation of the Company; or

 

(v)            the
following individuals cease for any reason to constitute a majority of the Board:  individuals who, as of the Effective Date, constitute
the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened
election contest, including, but not limited to, a consent solicitation relating to the election of directors of the Company) whose appointment
or election by the Board or nomination for election by the Company’s stockholders was approved and recommended by a vote of at least
two-thirds of the directors then still in office who either were directors on the Effective Date or whose appointment, election or nomination
for election was previously so approved or recommended.

 

Notwithstanding the foregoing, if an Award constitutes deferred compensation
subject to section 409A of the Code and the Award provides for payment upon a Change in Control, then, for purposes of such payment provisions,
no Change in Control shall be deemed to have occurred upon an event described in items (i) – (v) above unless the
event would also constitute a change in ownership or effective control of, or a change in the ownership of a substantial portion of the
assets of, the Company under section 409A of the Code.

 

(h)            “Code”
shall mean the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

 

(i)            “Committee”
shall mean the Compensation Committee of the Board or another committee appointed by the Board to administer the Plan. The Committee shall
also consist of directors who are “non-employee directors” as defined under Rule 16b-3 promulgated under the Exchange
Act and “independent directors,” as determined in accordance with the independence standards established by the stock exchange
on which the Common Stock is at the time primarily traded.

 

(j)            “Common
Stock” shall mean common stock of the Company.

 

(k)            “Company”
shall mean Onconova Therapeutics, Inc. as defined in the preamble and shall include its successors.

 

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(l)            “Disability”
or “Disabled” shall mean, unless otherwise set forth in the Award Agreement, a Participant’s becoming disabled
within the meaning of the Employer’s long-term disability plan applicable to the Participant, or, if there is no such plan, a physical
or mental condition that prevents the Participant from performing the essential functions of the Participant’s position (with or
without reasonable accommodation) for a period of six consecutive months.

 

(m)            “Dividend
Equivalent” shall mean an amount determined by multiplying the number of shares of Common Stock subject to a Stock Unit or Other
Stock-Based Award by the per-share cash dividend paid by the Company on its outstanding Common Stock, or the per-share Fair Market Value
of any dividend paid on its outstanding Common Stock in consideration other than cash. If interest is credited on accumulated divided
equivalents, the term “Dividend Equivalent” shall include the accrued interest.

 

(n)            “Effective
Date” shall mean the date of stockholder approval of the Plan.

 

(o)            “Employee”
shall mean an employee of the Employer (including an officer or director who is also an employee), but excluding any person who is classified
by the Employer as a “contractor” or “consultant,” no matter how characterized by the Internal Revenue Service,
other governmental agency or a court. Any change of characterization of an individual by the Internal Revenue Service or any court or
government agency shall have no effect upon the classification of an individual as an Employee for purposes of this Plan, unless the Committee
determines otherwise.

 

(p)            “Employed
by, or providing service to, the Employer” shall mean employment or service as an Employee, Key Advisor or member of the Board
(so that, for purposes of exercising Options and SARs and satisfying conditions with respect to Stock Awards, Stock Units and Other Stock-Based
Awards, a Participant shall not be considered to have terminated employment or service until the Participant ceases to be an Employee,
Key Advisor and member of the Board), unless the Committee determines otherwise. If a Participant’s relationship is with a subsidiary
of the Company and that entity ceases to be a subsidiary of the Company, the Participant will be deemed to cease employment or service
when the entity ceases to be a subsidiary of the Company, unless the Participant transfers employment or service to an Employer.

 

(q)            “Employer”
shall mean the Company and its subsidiaries.

 

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

 

(s)            “Exercise
Price” shall mean the per share price at which shares of Common Stock may be purchased under an Option, as designated by the
Committee.

 

(t)            “Fair
Market Value” shall mean:

 

(i)            If
the Common Stock is publicly traded, the Fair Market Value per share shall be determined as follows: (A) if the principal trading
market for the Common Stock is a national securities exchange, the closing sales price during regular trading hours on the relevant date
or, if there were no trades on that date, the latest preceding date upon which a sale was reported, or (B) if the Common Stock is
not principally traded on any such exchange, the last reported sale price of a share of Common Stock during regular trading hours on the
relevant date, as reported by the OTC Bulletin Board.

 

(ii)            If
the Common Stock is not publicly traded or, if publicly traded, is not subject to reported transactions as set forth above, the Fair Market
Value per share shall be determined by the Committee through any reasonable valuation method authorized under the Code.

 

(u)            “Incentive
Stock Option” shall mean an Option that is intended to meet the requirements of an incentive stock option under section 422
of the Code.

 

(v)            “Key
Advisor” shall mean a consultant or advisor of the Employer.

 

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(w)            “Non-Employee
Director” shall mean a member of the Board who is not an Employee.

 

(x)            “Nonqualified
Stock Option” shall mean an Option that is not intended to be taxed as an incentive stock option under section 422 of the Code.

 

(y)            “Option”
shall mean an option to purchase shares of Common Stock, as described in Section 6.

 

(z)            “Other
Stock-Based Award” shall mean any Award based on, measured by or payable in Common Stock (other than an Option, Stock Unit,
Stock Award, or SAR), as described in Section 10.

 

(aa)     “Participant”
shall mean an Employee, Key Advisor or Non-Employee Director designated by the Committee to participate in the Plan.

 

(bb)     “Performance
Objectives” shall mean the performance objectives established in the sole discretion of the Committee for Participants who are
eligible to receive Awards under the Plan. Performance Objectives may be described in terms of Company-wide objectives or objectives that
are related to the performance of the individual Participant or the subsidiary, division, department or function within the Company or
one of its subsidiaries in which the Participant is employed. Performance Objectives may be measured on an absolute or relative basis.
Relative performance may be measured by a group of peer companies or by a financial market index. Any Performance Objectives may include:
specified levels of or increases in the Company’s, a division’s or a subsidiary’s return on capital, equity or assets;
earnings measures/ratios (on a gross, net, pre-tax or post-tax basis), including basic earnings per share, diluted earnings per share,
total earnings, operating earnings, earnings growth, earnings before interest and taxes and earnings before interest, taxes, depreciation
and amortization; net economic profit (which is operating earnings minus a charge to capital); net income; operating income; sales; sales
growth; gross margin; direct margin; costs; stock price (including but not limited to growth measures and total stockholder return); operating
profit; per period or cumulative cash flow (including but not limited to operating cash flow and free cash flow) or cash flow return on
investment (which equals net cash flow divided by total capital); inventory turns; financial return ratios; market share; balance sheet
measurements such as receivable turnover; improvement in or attainment of expense levels; improvement in or attainment of working capital
levels; debt reduction; strategic innovation; customer or employee satisfaction; the consummation of one or more acquisitions of a certain
size as measured by one or more of the financial criteria listed above; individual objectives; regulatory body approval for commercialization
of a product; implementation or completion of critical projects (including, but not limited to, milestones such as clinical trial enrollment
targets, commencement of phases of clinical trials and completion of phases of clinical trials); and any combination of the foregoing.

 

(cc)     “Plan”
shall mean this Onconova Therapeutics, Inc. 2021 Incentive Compensation Plan as defined in the preamble, as may be in effect from
time to time.

 

(dd)     “Prior
Plans” shall have the meaning given to the term in the preamble.

 

(ee)     “Restriction
Period” shall have the meaning given that term in Section 7(a).

 

(ff)     “SAR”
shall mean a stock appreciation right, as described in Section 9.

 

(gg)     “Stock
Award” shall mean an award of Common Stock, as described in Section 7.

 

(hh)     “Stock
Unit” shall mean an award of a phantom unit representing a share of Common Stock, as described in Section 8.

 

(ii)            “Substitute
Awards” shall have the meaning given that term in Section 4(c).

 

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Section 2.     Administration

 

(a)            Committee.
The Plan shall be administered and interpreted by the Committee. The Committee may delegate authority to one or more subcommittees, as
it deems appropriate. Subject to compliance with applicable law and the applicable stock exchange rules, the Board, in its discretion,
may perform any action of the Committee hereunder. To the extent that the Board, the Committee, a subcommittee or the CEO, as described
below, administers the Plan, references in the Plan to the “Committee” shall be deemed to refer to the Board, the Committee
or such subcommittee or the CEO.

 

(b)            Delegation
to CEO. Subject to compliance with applicable law and applicable stock exchange requirements, the Committee may delegate all or part
of its authority and power to the CEO, as it deems appropriate, with respect to Awards to Employees or Key Advisors who are not executive
officers or directors under section 16 of the Exchange Act.

 

(c)            Committee
Authority. The Committee shall have the sole authority to (i) determine the individuals to whom Awards shall be made under the
Plan, (ii) determine the type, size, terms and conditions of the Awards to be made to each such individual, (iii) determine
the time when the Awards will be made and the duration of any applicable exercise or restriction period, including the criteria for exercisability
and the acceleration of exercisability, (v) amend the terms of any previously issued Award, subject to the provisions of Section 17
below, and (vi) deal with any other matters arising under the Plan.

 

(d)            Committee
Determinations. The Committee shall have full power and express discretionary authority to administer and interpret the Plan, to make
factual determinations and to adopt or amend such rules, regulations, agreements and instruments for implementing the Plan and for the
conduct of its business as it deems necessary or advisable, in its sole discretion. The Committee’s interpretations of the Plan
and all determinations made by the Committee pursuant to the powers vested in it hereunder shall be conclusive and binding on all persons
having any interest in the Plan or in any awards granted hereunder. All powers of the Committee shall be executed in its sole discretion,
in the best interest of the Company, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to
similarly situated individuals.

 

(e)            Indemnification.
No member of the Committee or the Board, and no employee of the Company shall be liable for any act or failure to act with respect to
the Plan, except in circumstances involving his or her bad faith or willful misconduct, or for any act or failure to act hereunder by
any other member of the Committee or employee or by any agent to whom duties in connection with the administration of this Plan have been
delegated. The Company shall indemnify members of the Committee and the Board and any agent of the Committee or the Board who is an employee
of the Company or a subsidiary against any and all liabilities or expenses to which they may be subjected by reason of any act or failure
to act with respect to their duties on behalf of the Plan, except in circumstances involving such person’s bad faith or willful
misconduct.

 

Section 3.     Awards

 

(a)            General.
Awards under the Plan may consist of Options as described in Section 6, Stock Awards as described in Section 7, Stock Units
as described in Section 8, SARs as described in Section 9 and Other Stock-Based Awards as described in Section 10. All
Awards shall be subject to the terms and conditions set forth herein and to such other terms and conditions consistent with this Plan
as the Committee deems appropriate and as are specified in writing by the Committee to the individual in the Award Agreement. All Awards
shall be made conditional upon the Participant’s acknowledgement, in writing or by acceptance of the Award, that all decisions and
determinations of the Committee shall be final and binding on the Participant, his or her beneficiaries and any other person having or
claiming an interest under such Award. Awards under a particular Section of the Plan need not be uniform as among the Participants.
Notwithstanding anything to the contrary herein, any dividends or Dividend Equivalents granted in connection with Awards under the Plan
shall vest and be paid only if and to the extent the underlying Awards vest and are paid.

 

(b)            Minimum
Vesting. Awards granted under the Plan shall include regular vesting schedules that provide that no portion of an Award will vest
earlier than one year from the date of grant. However, subject to adjustments made in accordance with Section 4(e) below, up
to five percent (5%) of the shares of Common Stock subject to the aggregate share reserve set forth in Section 4(a) as of the
Effective Date may be granted without regard to this minimum vesting requirement.

 

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Section 4.     Shares
Subject to the Plan

 

(a)            Shares
Authorized. Subject to adjustment as described below in Sections 4(b) and 4(e), the maximum aggregate number of shares of Common
Stock that may be issued or transferred under the Plan with respect to Awards made under the Plan on and after the Effective Date shall
be 1,300,000 shares. In addition, any shares of Common Stock that remained available for awards under the 2018 Plan as of the Effective
Date and any shares of Common Stock subject to outstanding awards under the Prior Plans as of the Effective Date that are payable in shares
and that terminate, expire, or are cancelled, forfeited, exchanged or surrendered without having been exercised, vested or paid in shares,
on or after the Effective Date, subject to adjustment as provided in Section 3(e) below), may be issued with respect to Awards
under this Plan. The aggregate number of shares of Common Stock that may be issued or transferred under the Plan pursuant to Incentive
Stock Options granted on and after the Effective Date shall not exceed 1,300,000 shares of Common Stock.

 

(b)            Source
of Shares; Share Counting. Shares issued or transferred under the Plan may be authorized but unissued shares of Common Stock or reacquired
shares of Common Stock, including shares purchased by the Company on the open market for purposes of the Plan. If and to the extent Options
or SARs granted under the Plan or options granted under the Prior Plans terminate, expire or are canceled, forfeited, exchanged or surrendered
without having been exercised, or if any Stock Awards, Stock Units, or Other Stock-Based Awards are forfeited, terminated or otherwise
not paid in full, the shares subject to such Awards shall again be available for purposes of the Plan. Shares surrendered in payment of
the Exercise Price of an Option (including an option granted under the Prior Plans that is exercised on or after the Effective Date) shall
not be available for re-issuance under the Plan. Shares of Common Stock withheld or surrendered for payment of taxes with respect to Awards
(including options granted under the Prior Plans) shall not be available for re-issuance under the Plan. If SARs are granted, the full
number of shares subject to the SARs shall be considered issued under the Plan, without regard to the number of shares issued upon exercise
of the SARs. To the extent any Awards are paid in cash, and not in shares of Common Stock, any shares previously subject to such Awards
shall again be available for issuance or transfer under the Plan. For the avoidance of doubt, if shares are repurchased by the Company
on the open market with the proceeds of the Exercise Price of Options (including options granted under the Prior Plans), such shares may
not again be made available for issuance under the Plan

 

(c)            Substitute
Awards. Shares issued or transferred under Awards made pursuant to an assumption, substitution or exchange for previously granted
awards of a company acquired by the Company in a transaction (“Substitute Awards”) shall not reduce the number of shares
of Common Stock available under the Plan and available shares under a stockholder approved plan of an acquired company (as appropriately
adjusted to reflect the transaction) may be used for Awards under the Plan and shall not reduce the Plan’s share reserve (subject
to applicable stock exchange listing and Code requirements).

 

(d)            Individual
Non-Employee Director Limit. Subject to adjustment as described below in Section 4(e), the maximum aggregate grant date value
of shares of Common Stock subject to Awards granted to any Non-Employee Director during any calendar year for services rendered as a Non-Employee
Director, taken together with any cash fees earned by such Non-Employee Director for services rendered as a Non-Employee Director during
the calendar year, shall not exceed $300,000 in total value. For purposes of the limits set forth in this Section 4(d), the value
of such Awards shall be calculated based on the grant date fair value of such Awards for financial reporting purposes.

 

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(e)            Adjustments.
If there is any change in the number or kind of shares of Common Stock outstanding by reason of (i) a stock dividend, spinoff, recapitalization,
stock split, reverse stock split or combination or exchange of shares, (ii) a merger, reorganization or consolidation, (iii) a
reclassification or change in par value, or (iv) any other unusual or infrequently occurring event affecting the outstanding Common
Stock as a class without the Company’s receipt of consideration, or if the value of outstanding shares of Common Stock is substantially
reduced as a result of a spinoff or the Company’s payment of an extraordinary dividend or distribution, the maximum number and kind
of shares of Common Stock available for issuance under the Plan, the maximum number and kind of shares of Common Stock for which any individual
may receive Awards in any year, the kind and number of shares covered by outstanding Awards, the kind and number of shares issued and
to be issued under the Plan, and the price per share or the applicable market value of such Awards shall be equitably adjusted by the
Committee to reflect any increase or decrease in the number of, or change in the kind or value of, the issued shares of Common Stock to
preclude, to the extent practicable, the enlargement or dilution of rights and benefits under the Plan and such outstanding Awards; provided,
however, that any fractional shares resulting from such adjustment shall be eliminated. In addition, in the event of a Change in Control,
the provisions of Section 12 of the Plan shall apply. Any adjustments to outstanding Awards shall be consistent with section 409A
or 424 of the Code, to the extent applicable. Subject to Section 17(b) below, the adjustments of Awards under this Section 4(e) shall
include adjustment of shares, Exercise Price of Stock Options, base amount of SARs, Performance Objectives or other terms and conditions,
as the Committee deems appropriate. The Committee shall have the sole discretion and authority to determine what appropriate adjustments
shall be made and any adjustments determined by the Committee shall be final, binding and conclusive.

 

Section 5.     Eligibility
for Participation

 

(a)            Eligible
Persons. All Employees and Non-Employee Directors shall be eligible to participate in the Plan. Key Advisors shall be eligible to
participate in the Plan if the Key Advisors render bona fide services to the Employer, the services are not in connection with the offer
and sale of securities in a capital-raising transaction and the Key Advisors do not directly or indirectly promote or maintain a market
for the Company’s securities.

 

(b)            Selection
of Participants. The Committee shall select the Employees, Non-Employee Directors and Key Advisors to receive Awards and shall determine
the number of shares of Common Stock subject to a particular Award in such manner as the Committee determines.

 

Section 6.     Options

 

The Committee may grant Options to an Employee,
Non-Employee Director or Key Advisor upon such terms as the Committee deems appropriate. The following provisions are applicable to Options:

 

(a)            Number
of Shares. The Committee shall determine the number of shares of Common Stock that will be subject to each Award of Options to Employees,
Non-Employee Directors and Key Advisors.

 

(b)            Type
of Option and Exercise Price.

 

(i)            The
Committee may grant Incentive Stock Options or Nonqualified Stock Options or any combination of the two, all in accordance with the terms
and conditions set forth herein. Incentive Stock Options may be granted only to employees of the Company or its parent or subsidiary corporations,
as defined in section 424 of the Code. Nonqualified Stock Options may be granted to Employees, Non-Employee Directors and Key Advisors.

 

(ii)            The
Exercise Price of Common Stock subject to an Option shall be determined by the Committee and shall be equal to or greater than the Fair
Market Value of a share of Common Stock on the date the Option is granted. However, an Incentive Stock Option may not be granted to an
Employee who, at the time of grant, owns stock possessing more than 10% of the total combined voting power of all classes of stock of
the Company, or any parent or subsidiary corporation of the Company, as defined in section 424 of the Code, unless the Exercise Price
per share is not less than 110% of the Fair Market Value of a share of Common Stock on the date of grant.

 

(c)            Option
Term. The Committee shall determine the term of each Option. The term of any Option shall not exceed ten years from the date of grant.
However, an Incentive Stock Option that is granted to an Employee who, at the time of grant, owns stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company, or any parent or subsidiary corporation of the Company, as defined
in section 424 of the Code, may not have a term that exceeds five years from the date of grant. Notwithstanding the foregoing, in the
event that on the last business day of the term of an Option (other than an Incentive Stock Option), the exercise of the Option is prohibited
by applicable law, including a prohibition on purchases or sales of Common Stock under the Company’s insider trading policy, the
term of the Option shall be extended for a period of 30 days following the end of the legal prohibition, unless the Committee determines
otherwise.

 

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(d)            Exercisability
of Options. Subject to Section 3(b), Options shall become exercisable in accordance with such terms and conditions, consistent
with the Plan, as may be determined by the Committee and specified in the Award Agreement. Subject to the limitations set forth in Section 12,
the Committee may accelerate the exercisability of any or all outstanding Options at any time for any reason.

 

(e)            Awards
to Non-Exempt Employees. Notwithstanding the foregoing, Options granted to persons who are non-exempt employees under the Fair Labor
Standards Act of 1938, as amended, may not be exercisable for at least six months after the date of grant (except that such Options may
become exercisable, as determined by the Committee, upon the Participant’s death, Disability or retirement, or upon a Change in
Control or other circumstances permitted by applicable regulations).

 

(f)            Termination
of Employment or Service. Except as provided in the Award Agreement, an Option may only be exercised while the Participant is employed
by, or providing services to, the Employer. The Committee shall determine in the Award Agreement under what circumstances and during what
time periods a Participant may exercise an Option after termination of employment or service.

 

(g)            Exercise
of Options. A Participant may exercise an Option that has become exercisable, in whole or in part, by delivering a notice of exercise
to the Company. The Participant shall pay the Exercise Price for an Option as specified by the Committee (i) in cash or by check,
(ii) unless the Committee determines otherwise, by delivering shares of Common Stock owned by the Participant and having a Fair Market
Value on the date of exercise at least equal to the Exercise Price or by attestation (on a form prescribed by the Committee) to ownership
of shares of Common Stock having a Fair Market Value on the date of exercise at least equal to the Exercise Price, (iii) by payment
through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board, (iv) if permitted by the Committee,
by withholding shares of Common Stock subject to the exercisable Option, which have a Fair Market Value on the date of exercise equal
to the Exercise Price, or (v) by such other method as the Committee may approve. Shares of Common Stock used to exercise an Option
shall have been held by the Participant for the requisite period of time necessary to avoid adverse accounting consequences to the Company
with respect to the Option. Payment for the shares to be issued or transferred pursuant to the Option, and any required withholding taxes,
must be received by the Company by the time specified by the Committee depending on the type of payment being made, but in all cases prior
to the issuance or transfer of such shares.

 

(h)            Limits
on Incentive Stock Options. Each Incentive Stock Option shall provide that, if the aggregate Fair Market Value of the Common Stock
on the date of the grant with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any
calendar year, under the Plan or any other stock option plan of the Company or a parent or subsidiary, exceeds $100,000, then the Option,
as to the excess, shall be treated as a Nonqualified Stock Option.

 

Section 7.     Stock
Awards

 

The Committee may issue or transfer shares of Common
Stock to an Employee, Non-Employee Director or Key Advisor under a Stock Award, upon such terms as the Committee deems appropriate. The
following provisions are applicable to Stock Awards:

 

(a)            General
Requirements. Shares of Common Stock issued pursuant to Stock Awards may be issued for consideration or for no consideration, and
subject to restrictions or no restrictions, as determined by the Committee. Subject to Section 3(b), the Committee may, but shall
not be required to, establish conditions under which restrictions on Stock Awards shall lapse over a period of time or according to such
other criteria as the Committee deems appropriate, including, without limitation, restrictions based upon the achievement of specific
Performance Objectives. The period of time during which the Stock Awards will remain subject to restrictions will be designated in the
Award Agreement as the “Restriction Period.”

 

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(b)            Number
of Shares. The Committee shall determine the number of shares of Common Stock to be issued or transferred pursuant to a Stock Award
and the restrictions applicable to such shares.

 

(c)            Requirement
of Employment or Service. If the Participant ceases to be employed by, or provide service to, the Employer during a period designated
in the Award Agreement as the Restriction Period, or if other specified conditions are not met, the Stock Award shall terminate as to
all shares covered by the Award as to which the restrictions have not lapsed, and those shares of Common Stock must be immediately returned
to the Company. Subject to the limitations set forth in Section 12, the Committee may, however, provide for complete or partial exceptions
to this requirement as it deems appropriate.

 

(d)            Restrictions
on Transfer and Legend on Stock Certificate. During the Restriction Period, a Participant may not sell, assign, transfer, pledge or
otherwise dispose of the shares of a Stock Award except under Section 15 below. Unless otherwise determined by the Committee, the
Company will retain possession of certificates for shares of Stock Awards until all restrictions on such shares have lapsed. Each certificate
for a Stock Award, unless held by the Company, shall contain a legend giving appropriate notice of the restrictions in the Award. The
Participant shall be entitled to have the legend removed from the stock certificate covering the shares subject to restrictions when all
restrictions on such shares have lapsed. The Committee may determine that the Company will not issue certificates for Stock Awards until
all restrictions on such shares have lapsed.

 

(e)            Right
to Vote and to Receive Dividends. Unless the Committee determines otherwise, during the Restriction Period, the Participant shall
have the right to vote shares of Stock Awards and to receive any dividends or other distributions paid on such shares, subject to any
restrictions deemed appropriate by the Committee, including, without limitation, the achievement of specific Performance Objectives; provided,
however, that dividends shall vest and be paid only if and to the extent that the underlying Stock Award vests and is paid.

 

(f)            Lapse
of Restrictions. All restrictions imposed on Stock Awards shall lapse upon the expiration of the applicable Restriction Period and
the satisfaction of all conditions, if any, imposed by the Committee. The Committee may determine, as to any or all Stock Awards, that
the restrictions shall lapse without regard to any Restriction Period.

 

Section 8.     Stock
Units

 

The Committee may grant Stock Units, each of which
shall represent one hypothetical share of Common Stock, to an Employee, Non-Employee Director or Key Advisor upon such terms and conditions
as the Committee deems appropriate. The following provisions are applicable to Stock Units:

 

(a)            Crediting
of Units. Each Stock Unit shall represent the right of the Participant to receive a share of Common Stock or an amount of cash based
on the value of a share of Common Stock, if and when specified conditions are met. All Stock Units shall be credited to bookkeeping accounts
established on the Company’s records for purposes of the Plan.

 

(b)            Terms
of Stock Units. Subject to Section 3(b), the Committee may grant Stock Units that vest and are payable if specified Performance
Objectives or other conditions are met, or under other circumstances. Stock Units may be paid at the end of a specified performance period
or other period, or payment may be deferred to a date authorized by the Committee. Subject to the limitations set forth in Section 12,
the Committee may accelerate vesting or payment, as to any or all Stock Units at any time for any reason, provided such acceleration complies
with section 409A of the Code. The Committee shall determine the number of Stock Units to be granted and the requirements applicable to
such Stock Units.

 

(c)            Requirement
of Employment or Service. If the Participant ceases to be employed by, or provide service to, the Employer prior to the vesting of
Stock Units, or if other conditions established by the Committee are not met, the Participant’s Stock Units shall be forfeited.
The Committee may, however, provide for complete or partial exceptions to this requirement as it deems appropriate.

 

    	 	9	 

     

    

 

(d)            Payment
With Respect to Stock Units. Payments with respect to Stock Units shall be made in cash, Common Stock or any combination of the foregoing,
as the Committee shall determine.

 

Section 9.     Stock
Appreciation Rights

 

The Committee may grant SARs to an Employee, Non-Employee
Director or Key Advisor separately or in tandem with any Option. The following provisions are applicable to SARs:

 

(a)            General
Requirements. The Committee may grant SARs to an Employee, Non-Employee Director or Key Advisor separately or in tandem with any Option
(for all or a portion of the applicable Option). Tandem SARs may be granted either at the time the Option is granted or at any time thereafter
while the Option remains outstanding; provided, however, that, in the case of an Incentive Stock Option, SARs may be granted only at the
time of the grant of the Incentive Stock Option. The Committee shall establish the base amount of the SAR at the time the SAR is granted.
The base amount of each SAR shall be equal to or greater than the Fair Market Value of a share of Common Stock as of the date of grant
of the SAR. The term of any SAR shall not exceed ten years from the date of grant. Notwithstanding the foregoing, in the event that on
the last business day of the term of a SAR, the exercise of the SAR is prohibited by applicable law, including a prohibition on purchases
or sales of Common Stock under the Company’s insider trading policy, the term shall be extended for a period of 30 days following
the end of the legal prohibition, unless the Committee determines otherwise.

 

(b)            Tandem
SARs. In the case of tandem SARs, the number of SARs granted to a Participant that shall be exercisable during a specified period
shall not exceed the number of shares of Common Stock that the Participant may purchase upon the exercise of the related Option during
such period. Upon the exercise of an Option, the SARs relating to the Common Stock covered by such Option shall terminate. Upon the exercise
of SARs, the related Option shall terminate to the extent of an equal number of shares of Common Stock.

 

(c)            Exercisability.
Subject to Section 3(b), an SAR shall be exercisable during the period specified by the Committee in the Award Agreement and shall
be subject to such vesting and other restrictions as may be specified in the Award Agreement. Subject to the limitations set forth in
Section 12, the Committee may accelerate the exercisability of any or all outstanding SARs at any time for any reason. SARs may only
be exercised while the Participant is employed by, or providing service to, the Employer or during the applicable period after termination
of employment or service as specified by the Committee. A tandem SAR shall be exercisable only during the period when the Option to which
it is related is also exercisable.

 

(d)            Grants
to Non-Exempt Employees. Notwithstanding the foregoing, SARs granted to persons who are non-exempt employees under the Fair Labor
Standards Act of 1938, as amended, may not be exercisable for at least six months after the date of grant (except that such SARs may become
exercisable, as determined by the Committee, upon the Participant’s death, Disability or retirement, or upon a Change in Control
or other circumstances permitted by applicable regulations).

 

(e)            Value
of SARs. When a Participant exercises SARs, the Participant shall receive in settlement of such SARs an amount equal to the value
of the stock appreciation for the number of SARs exercised. The stock appreciation for an SAR is the amount by which the Fair Market Value
of the underlying Common Stock on the date of exercise of the SAR exceeds the base amount of the SAR as described in subsection (a).

 

(f)            Form of
Payment. The appreciation in an SAR shall be paid in shares of Common Stock, cash or any combination of the foregoing, as the Committee
shall determine. For purposes of calculating the number of shares of Common Stock to be received, shares of Common Stock shall be valued
at their Fair Market Value on the date of exercise of the SAR.

 

Section 10.     Other
Stock-Based Awards

 

The Committee may grant Other Stock-Based Awards,
which are awards (other than those described in Sections 6, 7, 8 and 9 of the Plan) that are based on or measured by Common Stock, to
any Employee, Non-Employee Director or Key Advisor, on such terms and conditions as the Committee shall determine. Subject to Section 3(b),
Other Stock-Based Awards may be awarded subject to the achievement of Performance Objectives or other criteria or other conditions and
may be payable in cash, Common Stock or any combination of the foregoing, as the Committee shall determine.

 

    	 	10	 

     

    

 

Section 11.     Dividend
Equivalents

 

The Committee may grant Dividend Equivalents in
connection with Stock Units or Other Stock-Based Awards. Subject to Section 3(b), Dividend Equivalents may be payable in cash or
shares of Common Stock, and upon such terms and conditions as the Committee shall determine; provided that Dividend Equivalents shall
vest and be paid only if and to the extent the underlying Stock Units or Other Stock-Based Awards vest and are paid. For the avoidance
of doubt, no dividends or Dividend Equivalents will be granted in connection with Stock Options or SARs.

 

Section 12.     Consequences
of a Change in Control

 

(a)            Assumption
of Outstanding Awards. Upon a Change in Control where the Company is not the surviving corporation (or survives only as a subsidiary
of another corporation), all outstanding Awards that are not exercised or paid at the time of the Change in Control shall be assumed by,
or replaced with grants that have comparable terms by, the surviving corporation (or a parent or subsidiary of the surviving corporation).
In the event that the surviving corporation (or a parent or subsidiary of the surviving corporation) does not assume or replace Awards
with grants that have comparable terms, outstanding Stock Options and SARs shall automatically accelerate and become fully exercisable
and the restrictions and conditions on outstanding Stock Awards, Stock Units, Other Stock-Based Awards and Dividend Equivalents shall
immediately lapse, provided that if the vesting of any such Awards is based, in whole or in part, on performance, such Awards shall vest
based on the greater of (i) actual performance as of the Change in Control or (ii) target performance, pro-rated based on the
period elapsed between the beginning of the applicable performance period and the date of the Change in Control. After a Change in Control,
references to the “Company” as they relate to employment matters shall include the successor employer in the transaction,
subject to applicable law.

 

(b)            Vesting
Upon Certain Terminations of Employment. At the Committee’s discretion, if Awards are assumed by, or replaced with grants that
have comparable terms by, the surviving corporation (or a parent or subsidiary of the surviving corporation) and if a Participant incurs
an involuntary termination of employment or service on or after a Change in Control, the Participant’s outstanding Awards may become
vested, in whole or in part, as of the date of such termination; provided that if the vesting of any such Awards is based, in whole or
in part, on performance, such Awards shall vest only based on the greater of (i) actual performance as of the date of Change in Control
or (ii) target performance, pro-rated based on the period elapsed between the beginning of the applicable performance period and
the date of the termination.

 

(c)            Other
Alternatives. In the event of a Change in Control, if any outstanding Awards are not assumed by, or replaced with grants that have
comparable terms by, the surviving corporation (or a parent or subsidiary of the surviving corporation), the Committee may take any of
the following actions with respect to any or all outstanding Awards, without the consent of any Participant: (i) the Committee may
determine that Participants shall receive a payment in settlement of outstanding Stock Units, Other Stock-Based Awards or Dividend Equivalents,
in such amount and form as may be determined by the Committee; (ii) the Committee may require that Participants surrender their outstanding
Stock Options and SARs in exchange for a payment by the Company, in cash or Common Stock as determined by the Committee, in an amount
equal to the amount, if any, by which the then Fair Market Value of the shares of Common Stock subject to the Participant’s unexercised
Stock Options and SARs exceeds the Stock Option Exercise Price or SAR base amount, and (iii) after giving Participants an opportunity
to exercise all of their outstanding Stock Options and SARs, the Committee may terminate any or all unexercised Stock Options and SARs
at such time as the Committee deems appropriate. Such surrender, termination or payment shall take place as of the date of the Change
in Control or such other date as the Committee may specify. Without limiting the foregoing, if the per share Fair Market Value of the
Common Stock does not exceed the per share Stock Option Exercise Price or SAR base amount, as applicable, the Company shall not be required
to make any payment to the Participant upon surrender of the Stock Option or SAR.

 

    	 	11	 

     

    

 

Section 13.     Deferrals

 

The Committee may permit or require a Participant
to defer receipt of the payment of cash or the delivery of shares that would otherwise be due to such Participant in connection with any
Award. If any such deferral election is permitted or required, the Committee shall establish rules and procedures for such deferrals
and may provide for interest or other earnings to be paid on such deferrals. The rules and procedures for any such deferrals shall
be consistent with applicable requirements of section 409A of the Code.

 

Section 14.     Withholding
of Taxes

 

(a)            Required
Withholding. All Awards under the Plan shall be subject to applicable United States federal (including FICA), state and local, foreign
country or other tax withholding requirements. The Employer may require that the Participant or other person receiving Awards or exercising
Awards pay to the Employer an amount sufficient to satisfy such tax withholding requirements with respect to such Awards, or the Employer
may deduct from other wages and compensation paid by the Employer the amount of any withholding taxes due with respect to such Awards.

 

(b)            Share
Withholding. The Committee may permit or require the Employer’s tax withholding obligation with respect to Awards paid in Common
Stock to be satisfied by having shares withheld up to an amount that does not exceed the Participant’s applicable withholding tax
rate for United States federal (including FICA), state and local, foreign country or other tax liabilities. The Committee may, in its
discretion, and subject to such rules as the Committee may adopt, allow Participants to elect to have such share withholding applied
to all or a portion of the tax withholding obligation arising in connection with any particular Award. Unless the Committee determines
otherwise, share withholding for taxes shall not exceed the Participant’s minimum applicable tax withholding amount.

 

Section 15.     Transferability
of Awards

 

(a)            Nontransferability
of Awards. Except as described in subsection (b) below, only the Participant may exercise rights under an Award during the Participant’s
lifetime. A Participant may not transfer those rights except (i) by will or by the laws of descent and distribution or (ii) with
respect to Awards other than Incentive Stock Options, pursuant to a domestic relations order. When a Participant dies, the personal representative
or other person entitled to succeed to the rights of the Participant may exercise such rights. Any such successor must furnish proof satisfactory
to the Company of his or her right to receive the Award under the Participant’s will or under the applicable laws of descent and
distribution.

 

(b)            Transfer
of Nonqualified Stock Options. Notwithstanding the foregoing, the Committee may provide, in an Award Agreement, that a Participant
may transfer Nonqualified Stock Options to family members, or one or more trusts or other entities for the benefit of or owned by family
members, consistent with the applicable securities laws, according to such terms as the Committee may determine; provided that the Participant
receives no consideration for the transfer of an Option and the transferred Option shall continue to be subject to the same terms and
conditions as were applicable to the Option immediately before the transfer.

 

Section 16.     Requirements
for Issuance or Transfer of Shares

 

No Common Stock shall be issued or transferred
in connection with any Award hereunder unless and until all legal requirements applicable to the issuance or transfer of such Common Stock
have been complied with to the satisfaction of the Committee. The Committee shall have the right to condition any Award on the Participant’s
undertaking in writing to comply with such restrictions on his or her subsequent disposition of the shares of Common Stock as the Committee
shall deem necessary or advisable, and certificates representing such shares may be legended to reflect any such restrictions. Certificates
representing shares of Common Stock issued or transferred under the Plan may be subject to such stop-transfer orders and other restrictions
as the Committee deems appropriate to comply with applicable laws, regulations and interpretations, including any requirement that a legend
be placed thereon.

 

    	 	12	 

     

    

 

Section 17.     Amendment
and Termination of the Plan

 

(a)            Amendment.
The Board may amend or terminate the Plan at any time; provided, however, that the Board shall not amend the Plan without stockholder
approval if such approval is required in order to comply with the Code or other applicable law, or to comply with applicable stock exchange
requirements.

 

(b)            No
Repricing of Options or SARs. Except in connection with a corporate transaction involving the Company (including, without limitation,
any stock dividend, distribution (whether in the form of cash, Common Stock, other securities or property), stock split, extraordinary
cash dividend, recapitalization, change in control, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase
or exchange of shares of Common Stock or other securities, or similar transactions), the Company may not, without obtaining stockholder
approval, (i) amend the terms of outstanding Stock Options or SARs to reduce the Exercise Price of such outstanding Stock Options
or base price of such SARs, (ii) cancel outstanding Stock Options or SARs in exchange for Stock Options or SARs with an Exercise
Price or base price, as applicable, that is less than the Exercise Price or base price of the original Stock Options or SARs or (iii) cancel
outstanding Stock Options or SARs with an Exercise Price or base price, as applicable, above the current stock price in exchange for cash
or other securities.

 

(c)            Termination
of Plan. The Plan shall terminate on the day immediately preceding the tenth anniversary of its Effective Date, unless the Plan is
terminated earlier by the Board or is extended by the Board with the approval of the stockholders.

 

(d)            Termination
and Amendment of Outstanding Awards. A termination or amendment of the Plan that occurs after an Award is made shall not materially
impair the rights of a Participant unless the Participant consents or unless the Committee acts under Section 18(f) below. The
termination of the Plan shall not impair the power and authority of the Committee with respect to an outstanding Award. Whether or not
the Plan has terminated, an outstanding Award may be terminated or amended under Section 18(f) below or may be amended by agreement
of the Company and the Participant consistent with the Plan, provided that the Participant’s consent is not required if any termination
or amendment to the Participant’s outstanding Award does not materially impair the rights or materially increase the obligations
of the Participant.

 

Section 18.     Miscellaneous

 

(a)            Awards
in Connection with Corporate Transactions and Otherwise. Nothing contained in the Plan shall be construed to (i) limit the right
of the Committee to make Awards under the Plan in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise,
of the business or assets of any corporation, firm or association, including Awards to employees thereof who become Employees, or (ii) limit
the right of the Company to grant stock options or make other awards outside of the Plan. The Committee may make a Substitute Award to
an employee of another corporation who becomes an Employee by reason of a corporate merger, consolidation, acquisition of stock or property,
reorganization or liquidation involving the Company, in substitution for a stock option or stock award granted by such corporation. Notwithstanding
anything in the Plan to the contrary, the Committee may establish such terms and conditions of the new Substitute Awards as it deems appropriate,
including setting the Exercise Price of Options or the base price of SARs at a price necessary to retain for the Participant the same
economic value as the prior options or rights.

 

(b)            Governing
Document. The Plan shall be the controlling document. No other statements, representations, explanatory materials or examples, oral
or written, may amend the Plan in any manner. The Plan shall be binding upon and enforceable against the Company and its successors and
assigns.

 

(c)            Funding
of the Plan. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any
other segregation of assets to assure the payment of any Awards under the Plan.

 

(d)            Rights
of Participants. Nothing in the Plan shall entitle any Employee, Non-Employee Director, Key Advisor or other person to any claim or
right to receive an Award under the Plan. Neither the Plan nor any action taken hereunder shall be construed as giving any individual
any rights to be retained by or in the employ of the Employer or any other employment rights.

 

    	 	13	 

     

    

 

(e)            No
Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan or any Award. Except as
otherwise provided under the Plan, the Committee shall determine whether cash, other awards or other property shall be issued or paid
in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

 

(f)            Compliance
with Law.

 

(i)            The
Plan, the exercise of Options and SARs and the obligations of the Company to issue or transfer shares of Common Stock under Awards shall
be subject to all applicable laws and regulations, and to approvals by any governmental or regulatory agency as may be required. With
respect to persons subject to section 16 of the Exchange Act, it is the intent of the Company that the Plan and all transactions under
the Plan comply with all applicable provisions of Rule 16b-3 or its successors under the Exchange Act. In addition, it is the intent
of the Company that Incentive Stock Options comply with the applicable provisions of section 422 of the Code, and that, to the extent
applicable, Awards comply with the requirements of section 409A of the Code. To the extent that any legal requirement of section 16 of
the Exchange Act or section 422, or 409A of the Code as set forth in the Plan ceases to be required under section 16 of the Exchange Act
or section 422 or 409A of the Code, that Plan provision shall cease to apply. The Committee may revoke any Award if it is contrary to
law or modify an Award to bring it into compliance with any valid and mandatory government regulation. The Committee may also adopt rules regarding
the withholding of taxes on payments to Participants. The Committee may, in its sole discretion, agree to limit its authority under this
Section.

 

(ii)            The
Plan is intended to comply with the requirements of section 409A of the Code, to the extent applicable. Each Award shall be construed
and administered such that the Award either (A) qualifies for an exemption from the requirements of section 409A of the Code or (B) satisfies
the requirements of section 409A of the Code. If an Award is subject to section 409A of the Code, (I) distributions shall only be
made in a manner and upon an event permitted under section 409A of the Code, (II) payments to be made upon a termination of employment
or service shall only be made upon a “separation from service” under section 409A of the Code, (III) unless the Award
specifies otherwise, each installment payment shall be treated as a separate payment for purposes of section 409A of the Code, and (IV) in
no event shall a Participant, directly or indirectly, designate the calendar year in which a distribution is made except in accordance
with section 409A of the Code.

 

(iii)            Any
Award that is subject to section 409A of the Code and that is to be distributed to a Key Employee (as defined below) upon separation from
service shall be administered so that any distribution with respect to such Award shall be postponed for six months following the date
of the Participant’s separation from service, if required by section 409A of the Code. If a distribution is delayed pursuant to
section 409A of the Code, the distribution shall be paid within 15 days after the end of the six-month period. If the Participant dies
during such six-month period, any postponed amounts shall be paid within 90 days of the Participant’s death. The determination of
Key Employees, including the number and identity of persons considered Key Employees and the identification date, shall be made by the
Committee or its delegate each year in accordance with section 416(i) of the Code and the “specified employee” requirements
of section 409A of the Code.

 

(iv)            Notwithstanding
anything in the Plan or any Award agreement to the contrary, each Participant shall be solely responsible for the tax consequences of
Awards under the Plan, and in no event shall the Company or any subsidiary or affiliate of the Company have any responsibility or liability
if an Award does not meet any applicable requirements of section 409A of the Code. Although the Company intends to administer the Plan
to prevent taxation under section 409A of the Code, the Company does not represent or warrant that the Plan or any Award complies with
any provision of federal, state, local or other tax law.

 

(g)            Establishment
of Subplans. The Board may from time to time establish one or more sub-plans under the Plan for purposes of satisfying applicable
blue sky, securities or tax laws of various jurisdictions. The Board shall establish such sub-plans by adopting supplements to the Plan
setting forth (i) such limitations on the Committee’s discretion under the Plan as the Board deems necessary or desirable and
(ii) such additional terms and conditions not otherwise inconsistent with the Plan as the Board shall deem necessary or desirable.
All supplements adopted by the Board shall be deemed to be part of the Plan, but each supplement shall apply only to Participants within
the affected jurisdiction and the Employer shall not be required to provide copies of any supplement to Participants in any jurisdiction
that is not affected.

 

    	 	14	 

     

    

 

(h)            Clawback
Rights. Subject to the requirements of applicable law, the Committee may provide in any Award Agreement that, if a Participant breaches
any restrictive covenant agreement between the Participant and the Employer (which may be set forth in any Award Agreement) or otherwise
engages in activities that constitute Cause either while employed by, or providing service to, the Employer or within the applicable period
of time thereafter, all Awards held by the Participant shall terminate, and the Company may rescind any exercise of an Option or SAR and
the vesting of any other Award and delivery of shares upon such exercise or vesting (including pursuant to dividends and Dividend Equivalents),
as applicable on such terms as the Committee shall determine, including the right to require that in the event of any such rescission,
(i) the Participant shall return to the Company the shares received upon the exercise of any Option or SAR and/or the vesting and
payment of any other Award (including pursuant to dividends and Dividend Equivalents) or, (ii) if the Participant no longer owns
the shares, the Participant shall pay to the Company the amount of any gain realized or payment received as a result of any sale or other
disposition of the shares (or, in the event the Participant transfers the shares by gift or otherwise without consideration, the Fair
Market Value of the shares on the date of the breach of the restrictive covenant agreement or activity constituting Cause), net of the
price originally paid by the Participant for the shares. Payment by the Participant shall be made in such manner and on such terms and
conditions as may be required by the Committee. The Employer shall be entitled to set off against the amount of any such payment any amounts
otherwise owed to the Participant by the Employer. In addition, all Awards under the Plan shall be subject to any applicable clawback
or recoupment policies, share trading policies and other policies that may be implemented by the Board from time to time.

 

(i)            Governing
Law. The validity, construction, interpretation and effect of the Plan and Award Agreements issued under the Plan shall be governed
and construed by and determined in accordance with the laws of the State of Delaware, without giving effect to the conflict of laws provisions
thereof.

 

    	 	15Document

Exhibit 10.1

						
	2021 Long-Term Time-Based Cash Award	ARMSTRONG FLOORING, INC.
2500 Columbia Ave., P.O. Box 3025
Lancaster, PA 17604
717.672.9611 

    
						
	[Grantee Name]	

    
I am pleased to inform you that the Company’s Management Development and Compensation Committee granted you the following:
						
	Date of Grant:	April 1, 2021
	Time-Based Cash Award:	[Cash Amount]

This grant is subject to the terms of this award agreement.  The award agreement consists of this grant letter and the Terms and Conditions attached as Exhibit A.
Vesting - The Cash Award will vest on April 1, 2023, if you remain employed by the Employer through such vesting date, except as described below.  The Cash Award is payable in a single lump sum cash payment (subject to applicable withholding for taxes).
Employment Events
The following chart is a summary of the provisions which apply to this award in connection with your termination of employment.  The following is only a summary, and in the event of termination of employment, the award will be governed by the Terms and Conditions.
						
	Event	Provisions

	Voluntary Resignation	Forfeit the unvested Cash Award
	Termination for Cause	Forfeit the unpaid (vested or unvested) Cash Award
	Involuntary Termination	If termination occurs after 10 months following the Date of Grant, the Cash Award vests pro-rata based on the period of employment; otherwise unvested portion of Cash Award is forfeited
	•Death
•Long-Term Disability
	Cash Award vests pro-rata based on the period of employment
	Involuntary Termination upon or within two years following a Change of Control	Cash Award vests in full upon termination of employment

In the event of any inconsistency between the foregoing summary and the Terms and Conditions, the Terms and Conditions will govern.  Capitalized terms used but not defined in this grant letter 
1

will have the meanings set forth in the Terms and Conditions. As described in the Terms and Conditions, if and to the extent that the terms of this award agreement conflict with the terms of a Change in Control Agreement or employment agreement between you and the Company, the terms of this award agreement shall supersede the terms of the Change in Control Agreement or employment agreement.
Please note that the Terms and Conditions contain restrictive covenant language pertaining to confidentiality, non-competition and non-solicitation.  You should read these sections carefully before deciding whether to accept the Cash Award.  If you decide not to accept the Cash Award, you will not be subject to the restrictive covenants set forth in the Terms and Conditions, but you will forfeit the Cash Award.  You will continue to be subject to any restrictive covenants set forth in the 2016 Long-Term Incentive Plan with respect to any equity grants made to you under such plan and any restrictive covenants set forth in any other agreements between you and the Company.  There will be no other consequences as a result of your decision not to accept the Cash Award.    
Please contact Steven Slutsky (484-744-9009) if you have questions.

Sincerely,

John C. Bassett
SVP & CHRO

2

EXHIBIT A

ARMSTRONG FLOORING, INC.
    
TIME-BASED CASH AWARD
TERMS AND CONDITIONS

1.Grant.  
(a)Subject to the terms set forth below, Armstrong Flooring, Inc. (the “Company”) has granted to the designated employee (the “Grantee”) a time-based cash award (the “Cash Award”) as specified in the 2021 Long-Term Time-Based Cash Award Grant Letter to which these Grant Conditions relate (the “Grant Letter”).  The “Date of Grant” is April 1, 2021.  The Cash Award entitles the Grantee to receive a cash bonus payment from the Grantee’s employer subject to the terms set forth below.    
(b)The Cash Award shall be vested and payable in accordance with the schedule set forth below, if and to the extent the terms of the Grant Letter and these Grant Conditions are met.
(c)These Terms and Conditions (the “Grant Conditions”) are part of the Grant Letter.  
2.Vesting.  Except as provided in Sections 3 and 4 below, the Cash Award shall vest on April 1, 2023, if the Grantee continues to be employed by the Company or its subsidiaries or affiliates (collectively, the “Employer”) on such date (the “Vesting Date”):
3.Termination of Employment.  
(a)Except as described below, if the Grantee ceases to be employed by the Employer for any reason prior to the Vesting Date, the unvested Cash Award shall be forfeited as of the termination date and shall cease to be outstanding.  
(b)Subject to Section 4 below, if, prior to the Vesting Date, the Grantee ceases to be employed by the Employer (x) on account of death or Long-Term Disability (as defined below), or (y) after ten months following the Date of Grant, on account of Involuntary Termination (as defined below), the Grantee shall vest in a pro-rated portion of the granted Cash Award in accordance with this Section 3(b), provided such vesting does not result in a violation of any age discrimination or other applicable law.  The pro-rated portion shall be determined by multiplying the amount of the Cash Award by a fraction, the numerator of which is the number of calendar months in the period starting with (i) the first calendar month following the month in which the Date of Grant occurs through (ii) the calendar month in which the Involuntary Termination date occurs, with such final calendar month counting as a full month, and the denominator of which is 24.  The pro-rated Cash Award shall be paid within 60 days after the Grantee’s termination date, as described in Section 7.  The unvested Cash Award, if any, shall be forfeited as of the termination date and shall cease to be outstanding.  
(c)If the Grantee ceases to be employed by the Employer on account of Cause (as defined below), the unpaid Cash Award (vested or unvested) shall be forfeited as of the termination date and shall cease to be outstanding.
3

4.Change in Control Involuntary Termination.  Notwithstanding Section 3 above, if the Grantee has an Involuntary Termination upon or within two years after a Change in Control (as defined below), and prior to the Vesting Date, the Grantee’s outstanding Cash Award shall become fully vested and shall be paid within 60 days after such Involuntary Termination, as described in Section 7.  If the Grantee has a Change in Control Severance Agreement with the Company (“Change in Control Agreement”), on and after a Change in Control, the term “Involuntary Termination” shall have the meaning given a termination by the Company without Cause as defined in the Change in Control Agreement, and shall include without limitation a termination for Good Reason as defined in the Change in Control Agreement.  The Grantee agrees that, subject to the immediately preceding sentence, if and to the extent that these Grant Conditions conflict with the terms of the Change in Control Agreement or any employment agreement between the Company and the Grantee, these Grant Conditions shall supersede the provisions of the Change in Control Agreement and employment agreement applicable to vesting of cash awards on and after a Change in Control, notwithstanding anything in the Change in Control Agreement or employment agreement to the contrary.
5.Definitions.  For purposes of these Grant Conditions and the Grant Letter:
(a)“Cause” shall mean any of the following, as determined in the sole discretion of the Employer: (i) commission of a felony or a crime involving moral turpitude; (ii) fraud, dishonesty, misrepresentation, theft or misappropriation of funds with respect to the Employer; (iii) violation of the Employer’s Code of Conduct or employment policies, as in effect from time to time; (iv) breach of any written noncompetition, confidentiality or non-solicitation covenant of  the Grantee with respect to the Employer; or (v) gross negligence or misconduct in the performance of the Grantee’s duties with the Employer.
(b)“Change in Control” shall have the meaning ascribed to the term on Attachment 1, the terms of which are incorporated herein.
(c)“Company Trade Secrets” shall have the meaning ascribed to the term on Attachment 1, the terms of which are incorporated herein.
(d)“Confidential Information” shall have the meaning ascribed to the term on Attachment 1, the terms of which are incorporated herein.
(e)“Injurious Conduct” shall have the meaning ascribed to the term on Attachment 1, the terms of which are incorporated herein. 
(f)“Involuntary Termination” shall mean the Employer’s termination of the Grantee’s employment other than for Cause.   
(g)“Long-Term Disability” shall mean the Grantee is receiving long-term disability benefits under the Employer’s long-term disability plan. 
6.Restrictive Covenants; Forfeiture.
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(a)The Management Development and Compensation Committee (the “Committee”) may determine that the Cash Award shall be forfeited if the Grantee engages in Injurious Conduct.
(b)If the Committee determines that the Grantee has engaged in Injurious Conduct, the Committee may in its discretion require the Grantee to return to the Company the cash received in payment of the Cash Award.  
(c)The Committee shall exercise the right of forfeiture and recoupment provided to the Company in this Section 6 within 180 days after the Company’s discovery of the Injurious Conduct activities giving rise to the Company’s right of forfeiture or recoupment.
(d)The Grantee may make a request to the Committee in writing for a determination regarding whether any proposed business or activity would constitute Injurious Conduct.  Such request shall fully describe the proposed business or activity.  The Committee shall respond to the Grantee in writing and the Committee’s determination shall be limited to the specific business or activity so described.
(e)By accepting the Cash Award, the Grantee acknowledges and agrees that all Company Trade Secrets and Confidential Information developed, created or maintained by the Grantee, alone or with others, during the Grantee’s employment or service with the Employer, shall remain at all times the sole property of the Company and its subsidiaries and affiliates.
(f)This Agreement consists of a series of separate restrictive covenants, all of which shall survive and be enforceable in law and/or equity after the Grantee’s termination or cessation of the Grantee’s employment or service with the Employer.  The Grantee understands that in the event of a violation of any provision of this Section 6, the Company shall have the right to seek injunctive relief, in addition to any other existing rights provided in this Agreement or by operation of law, without the requirement of posting bond. The remedies provided in this Section 6 shall be in addition to any legal or equitable remedies existing at law or provided for in any other agreement between the Grantee and the Company or any of its subsidiaries or affiliates, and shall not be construed as a limitation upon, or as an alternative or in lieu of, any such remedies. If any provisions of this Section 6 and Attachment 1 shall be determined by a court of competent jurisdiction to be unenforceable in part by reason of it being too great a period of time or covering too great a geographical area, it shall be in full force and effect as to that period of time or geographical area determined to be reasonable by the court.
(g)By accepting the Cash Award, the Grantee acknowledges that the Grantee has carefully read and considered the provisions of this Section 6 and Attachment 1 and agrees that the restrictions set forth herein are fair and reasonable, are supported by valid consideration, and are reasonably required to protect the legitimate business interests of the Company and its subsidiaries and affiliates.
(h)In the event of a breach by the Grantee of any restrictive covenant set forth on Attachment 1, the running of the period of restriction shall automatically be tolled and suspended for the amount of time the breach continues, and shall automatically commence when the breach is remedied so that the Company and its subsidiaries and affiliates shall receive the benefit of the Grantee’s compliance with the terms and conditions of this Section 6.
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7.Payment.  When the Cash Award (or portion thereof) vests, the Company shall cause the Grantee’s employer to make a single lump sum cash payment to the Grantee, payable in local currency, equal to the amount of the vested Cash Award, subject to applicable withholding for Taxes (as defined below).  Payment shall be made within 60 days after the applicable vesting date.
8.No Right to Continued Employment.  The grant of the Cash Award shall not confer upon the Grantee any right to continued employment with the Employer or interfere with the right of the Employer to terminate the Grantee’s employment at any time. 
9.Administration by the Committee.  The Cash Award, the Grant Letter and these Grant Conditions will be administered and interpreted by the Committee.  The Committee may delegate authority to one or more subcommittees or individuals, as it deems appropriate.  The Board of Directors of the Company (the “Board”) may take all actions of the Committee under the Grant Letter and these Grant Conditions.  To the extent that the Board, Committee, subcommittee or individual administers the Grant Letter and these Grant Conditions, references in the Grant Letter and these Grant Conditions to the “Committee” shall be deemed to refer to the Board, Committee, subcommittee or other individual.  The Committee is authorized to establish such rules and regulations as it deems necessary for the proper administration of the Cash Award, the Grant Letter and these Grant Conditions and the Committee has sole discretionary authority to make such determinations and interpretations and to take such action in connection with the Grant Letter and these Grant Conditions and the Cash Award granted hereunder as it deems necessary or advisable.  The Grantee’s receipt of this Cash Award constitutes the Grantee’s acknowledgement that all determinations and interpretations made by the Committee shall be binding and conclusive on the Grantee and any other person claiming an interest in the Cash Award.   
10.Amendment and Waiver.  No provisions of the Grant Letter and these Grant Conditions may be amended, modified, waived or discharged unless the amendment, waiver, modification, or discharge is authorized by the Committee; provided that the Grantee consents to such amendment, modification, waiver or discharge if it materially impairs the rights of the Grantee.
11.Withholding Taxes.  
(a)The Employer shall have the right, and the Grantee hereby authorizes the Employer, to deduct from all payments made hereunder and from other compensation an amount equal to the federal (including FICA), state, local and foreign taxes, social insurance, payroll tax, contributions, payment on account obligations or other amounts required by law to be collected, withheld or accounted for with respect to the Cash Award (the “Taxes”).  
(b)Regardless of any action the Employer takes with respect to any such Taxes, the Grantee acknowledges that the ultimate liability for all such Taxes legally due by the Grantee is and remains the Grantee’s responsibility and may exceed the amount actually withheld by the Employer.  The Grantee further acknowledges that the Employer (i) makes no representations or undertakings regarding the treatment of any Taxes in connection with any aspect of the Cash Award, including the grant, vesting or payment of the Cash Award; and (ii) does not commit to structure the terms of the grant or any aspect of the Cash Award to reduce or eliminate the Grantee’s liability for Taxes.  Further, if the Grantee has become subject to tax in more than one 
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jurisdiction between the Date of Grant and the date of any relevant taxable event, the Grantee acknowledges that the Employer (or the Grantee’s former employer, as applicable) may be required to collect, withhold or account for Taxes in more than one jurisdiction.
12.Company Policies.  All amounts payable under the Grant Letter and these Grant Conditions shall be subject to any applicable clawback or recoupment policies and other policies that may be implemented by the Company’s Board of Directors from time to time.   
13.Assignment.      The Grant Letter and these Grant Conditions shall bind and inure to the benefit of the successors and assignees of the Company.  The Grantee may not sell, assign, transfer, pledge or otherwise dispose of the Cash Award, except to a successor grantee in the event of the Grantee’s death.
14.Unfunded Agreement.  The Grant Letter and these Grant Conditions shall be unfunded, and the Grantee’s rights under the Grant Letter and these Grant Conditions are those of a general creditor of the Company.  The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of the Cash Award under the Grant Letter and these Grant Conditions.
15.Section 409A.  The Grant Letter and these Grant Conditions are intended to comply with the requirements of section 409A of the Code or an exemption (specifically, the short term deferral exemption of section 409A of the Code), and shall in all respects be administered in accordance with section 409A of the Code.  Any payment made under the Grant Letter and these Grant Conditions shall only be made in a manner and upon an event permitted under Section 409A of the Code, including the application of the six-month delay if required.    
16.Successors.  The provisions of the Grant Letter and these Grant Conditions shall extend to any business that becomes a successor to the Company or its subsidiaries or affiliates on account of a merger, consolidation, sale of assets, spinoff or similar transaction with respect to any business of the Company or its subsidiaries or affiliates with which the Grantee is employed, and if this grant continues in effect after such corporate event, references to the “Company or its subsidiaries or affiliates” or the “Employer” in the Grant Letter and these Grant Conditions shall include the successor business and its affiliates, as appropriate.  In that event, the Company may make such modifications to the Grant Letter and these Grant Conditions as it deems appropriate to reflect the corporate event.
17.Governing Law.  The validity, construction, interpretation and effect of the Grant Letter and these Grant Conditions shall be governed by, and determined in accordance with, the applicable laws of the State of Delaware, excluding any conflicts or choice of law rule or principle.  
18.No Entitlement or Claims for Compensation.  In connection with the acceptance of the grant of the Cash Award under the Grant Letter and these Grant Conditions, the Grantee acknowledges the following:
(a)the Grant Letter and these Grant Conditions are established voluntarily by the Company and  the grant of the Cash Award is made at the discretion of the Committee;
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(b)the grant of the Cash Award under the Grant Letter and these Grant Conditions is voluntary and occasional and does not create any contractual or other right to receive future grants of Cash Awards, or benefits in lieu of them, even if Cash Awards have been granted repeatedly in the past;
(c)all decisions with respect to future grants of Cash Awards, if any, will be at the sole discretion of the Committee;
(d)the Grantee is voluntarily accepting the Cash Award;
(e)the Cash Award and any payments thereunder are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Employer (including, as applicable, the Grantee’s employer) and which are outside of the scope of the Grantee’s employment contract, if any;
(f)the Cash Award and any payment thereunder are not to be considered part of the Grantee’s normal or expected compensation or salary for any purpose, including, but not limited to, calculating any severance, resignation, termination, payment in lieu of notice, redundancy, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;
(g)the Cash Award and any payments thereunder are not intended to replace any pension rights or compensation;
(h)the grant of the Cash Award and the Grantee’s acceptance of the Cash Award will not be interpreted to form an employment contract or relationship with the Employer; and
(i)the Grantee shall have no rights, claim or entitlement to compensation or damages as a result of the Grantee’s cessation of employment (for any reason whatsoever, whether or not in breach of contract or local labor law or the terms of the Grantee’s employment agreement, if any), insofar as these rights, claim or entitlement arise or may arise from the Grantee’s ceasing to have rights under or be entitled to receive payment under or loss or diminution in value of the Cash Award as a result of such cessation, and the Grantee irrevocably releases the Employer from any such rights, entitlement or claim that may arise.  If, notwithstanding the foregoing, any such right or claim is found by a court of competent jurisdiction to have arisen, then the Grantee shall be deemed to have irrevocably waived the Grantee’s entitlement to pursue such rights or claim.
19.Data Privacy. 
(a)The Grantee hereby explicitly, willingly and unambiguously consents to the collection, systematization, accumulation, storage, blocking, destruction, use, disclosure and transfer, in electronic or other form, of the Grantee’s personal data as described in these Grant Conditions by and among, as applicable, the Grantee’s employer, the Company or its subsidiaries or affiliates for the exclusive purpose of implementing, administering and managing the Grantee’s Cash Award.
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(b)The Grantee understands that the Grantee’s employer, the Company or its  subsidiaries or affiliates, as applicable, hold certain personal information and sensitive personal information about the Grantee regarding the Grantee’s employment, the nature and amount of the Grantee’s compensation and the fact and conditions of the Grantee’s Cash Award, including, but not limited to, the Grantee’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company or its subsidiaries or affiliates, details of all awards in the Grantee’s favor, for the purpose of implementing, administering and managing the Cash Award (the “Data”).
(c)The Grantee understands that the Data may be transferred, including any cross-border, transfer to the Company, its subsidiaries and affiliates and, to any third parties assisting in the implementation, administration and management of the Cash Award, that these recipients may be located in the Grantee’s country, or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Grantee’s country.  The Grantee understands that the Grantee may request a list with the names and addresses of any potential recipients of the Data by contacting the Grantee’s local human resources representative.  The Grantee authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Grantee’s Cash Award, including any requisite transfer of such Data as may be required to a broker or other third party.  The Grantee understands that the Data will be held only as long as is necessary to implement, administer and manage the Grantee’s Cash Award.  The Grantee understands that the Grantee may, at any time, view the Data, request additional information about the storage and processing of the Data, require any necessary amendments to the Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Grantee’s local human resources representative.  The Grantee understands, however, that refusing or withdrawing the Grantee’s consent may affect the Grantee’s ability to receive the Cash Award.  For more information on the consequences of refusal to consent or withdrawal of consent, the Grantee understands that the Grantee may contact the Grantee’s local human resources representative.

*    *    *

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Attachment 1

Definitions

For purposes of the Grant Letter and Grant Conditions, the following terms have the meanings ascribed to them on this Attachment 1:
i.“Affiliate” shall mean with respect to any Person, any other Person that, at any time that a determination is made hereunder, directly or indirectly, controls, is controlled by, or is under common control with such first Person.  For the purpose of this definition, “control” shall mean, as to any Person, the possession, directly or indirectly, of the power to elect or appoint a majority of directors (or other persons acting in similar capacities) of such Person or otherwise to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.  
i.“Beneficial Owner” and “Beneficially Own” shall have the meaning set forth in Rules 13d-3 and 13d-5 promulgated under the Exchange Act or any successor provision.
ii.“Change in Control” of the Company shall be deemed to have occurred if the event set forth in any one of the following sections shall have occurred:
1.any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing 35% or more of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (I) of subsection (iii) below;  
2.the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the date hereof, constitute the Board of Directors and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board of Directors or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least two-thirds of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; 
3.there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, other than (I) a merger or consolidation immediately following which the individuals who comprise the Board of Directors immediately prior thereto constitute at least a majority of the board of directors of the Company, the entity surviving such merger or consolidation or, if the Company or the entity surviving such merger is then a subsidiary, the ultimate parent thereof, or (II) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities 
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acquired directly from the Company or its Affiliates) representing 35% or more of the combined voting power of the Company’s then outstanding securities; or
4.the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets immediately following which the individuals who comprise the Board of Directors immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets are sold or disposed or any parent thereof.
Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred (i) by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions or (ii) by virtue of the consummation of a spin-off of any business line or business unit of the Company or a sale of (or similar transaction with respect to) all or substantially all of the assets that comprise a business line or business unit of the Company.  The Committee may provide in a grant agreement for another definition of Change in Control, including as necessary to comply with Section 409A of the Code.  
iii.“Code” shall mean Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 
iv.“Company Trade Secrets” shall mean information, including a formula, pattern, compilation, program, device, method, technique or process, that: (i) derives independent economic value, actual or potential, from not being generally known to the public or to other persons or entities who can obtain economic value from its disclosure or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain it secrecy.  Company Trade Secrets include, but are not limited to, the following: unique pricing methodologies and formulas for products and services of the Company or its subsidiaries or affiliates; unique marketing arrangements and strategies which the Company or its subsidiaries or affiliates use with their vendors and suppliers; and unique advertising arrangements and strategies that the Company or its subsidiaries or affiliates use to advertise their products and services.  For avoidance of doubt, Company Trade Secrets do not include any information that: (A) is already in the public domain or becomes available to the public through no breach by the Grantee of this Agreement; (B) was lawfully in the Grantee’s possession prior to disclosure to the Company or any of its subsidiaries or affiliates; (C) is lawfully disclosed to the Grantee by a third party without any obligations of confidentiality attaching to such disclosure; or (D) is developed by the Grantee entirely on the Grantee’s own time without equipment, supplies or facilities of the Company or its subsidiaries or affiliates and does not relate at the time of conception to business or actual or demonstrably anticipated research or development of the Company or its subsidiaries or affiliates.
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v.“Confidential Information” shall mean information belonging to the Company or its subsidiaries or affiliates, whether reduced to writing or in a form from which such information can be obtained, translated or derived into reasonably usable form, that has been provided to the Grantee during his employment or service with the Employer and/or the Grantee has gained access to during the Grantee’s employment or service with the Employer and/or was developed by the Grantee in the course of the Grantee’s employment or service with the Employer, that is proprietary and confidential in nature. Confidential Information includes, but is not limited to, the following: information believed by the Company or any of its subsidiaries or affiliates to be a Company Trade Secret that ultimately does not qualify as such under applicable law but nonetheless was maintained by the Company or its subsidiaries or affiliates as confidential; information concerning the nature of the business and manner of operation of the Company and its subsidiaries and affiliates; the methods and systems used by the Company or its subsidiaries or affiliates in soliciting, selling and providing their services and/or products to their customers; financial and accounting information, such as cost, pricing and billing information, customer profiles, financial policies and procedures, and revenues and profit margins; sales and marketing information, such as sales strategies and programs; information concerning customers and prospective customers of the Company and its subsidiaries and affiliates; information concerning vendors and suppliers of the Company and its subsidiaries and affiliates; customer lists; prospective customer lists; customer buying habits and special needs; policies and procedures; personnel records; compensation paid to employees or other service providers of the Company or any of its subsidiaries or affiliates.  For avoidance of doubt, Confidential Information does not include any information that: (A) is already in the public domain or becomes available to the public through no breach by the Grantee of this Agreement; (B) was lawfully in the Grantee’s possession prior to disclosure to the Company or any of its subsidiaries or affiliates; (C) is lawfully disclosed to the Grantee by a third party without any obligations of confidentiality attaching to such disclosure; or (D) is developed by the Grantee entirely on the Grantee’s own time without equipment, supplies or facilities of the Company or its subsidiaries or affiliates and does not relate at the time of conception to business or actual or demonstrably anticipated research or development of the Company or its subsidiaries or affiliates.
vi.“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
vii. “Injurious Conduct” shall mean the activities described in subsections (i), (ii), (iii) and (iv) below. 
1.The Grantee’s employment or service with the Employer is terminated for willful, deliberate, or gross misconduct, as determined by the Committee, in its sole discretion;  
2.During the Grantee’s employment or service with the Employer and for a period of 24 months thereafter, the Grantee breaches any of the following:
a.The Grantee shall not, directly for the Grantee or any third party, except on behalf of the Company or its subsidiaries or affiliates, become engaged in any business or activity which is directly in competition with any services or products sold by, or any business or activity engaged in by, the Company or any of its subsidiaries or affiliates, and in which the Grantee was involved as part of the Grantee’s job responsibilities during the Grantee’s employment or service with the Employer, or in which the Grantee learned Company Trade 
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Secrets or Confidential Information during the Grantee’s employment or service with the Employer; provided, however, that this provision shall not restrict the Grantee from owning or investing in publicly traded securities, so long as the Grantee’s aggregate holdings in such company do not exceed 2% of the outstanding equity of such company and such investment is passive; 
b.The Grantee shall not, directly for the Grantee or any third party, except on behalf of the Company or its subsidiaries or affiliates, (I) (x) solicit business from any person who was a customer of the Company or any of its subsidiaries or affiliates during the period of the Grantee’s employment or service hereunder or who was within the six-month period prior to such solicitation, or (y) solicit potential customers who are or were identified through leads developed during the course of the Grantee’s employment or service with the Employer, in each case, with whom the Grantee was involved as part of the Grantee’s job responsibilities during the Grantee’s employment or service with the Employer, or regarding whom the Grantee learned Company Trade Secrets and/or Confidential Information during the Grantee’s employment or service with the Employer, or (II) otherwise divert or attempt to divert any existing business of the Company or any of its subsidiaries or affiliates; and
c.The Grantee shall not, directly for the Grantee or any third party, except on behalf of the Company or its subsidiaries or affiliates, (I) solicit, induce, recruit or cause another person in the employment of the Company or any of its subsidiaries or affiliates to terminate such employee’s employment, or (II) hire or retain any person who is, or within the six-month period prior to such hiring or retention was, an employee of the Company or any of its subsidiaries or affiliates; 
3.During the Grantee’s employment or service with the Employer or thereafter, the Grantee uses, publishes or discloses any Company Trade Secrets and/or Confidential Information in any manner whatsoever, except as required in the conduct of business of the Company or any of its subsidiaries or affiliates or as authorized in writing by the Company or any of its subsidiaries or affiliates, as applicable.  By accepting the Cash Award, the Grantee acknowledges and agrees that (A) during the Grantee’s employment or service with the Employer, the Grantee has been or will be exposed to and/or provided with Company Trade Secrets and Confidential Information and (B) Company Trade Secrets are not generally known to the public or to competitors of the Company or its subsidiaries or affiliates, were developed or compiled at significant expense by the Company or its subsidiaries or affiliates over an extended period of time, are the subject of the reasonable efforts of the Company or its subsidiaries or affiliates to maintain their secrecy, and that the Company or its subsidiaries or affiliates derive significant independent economic value by keeping Company Trade Secrets a secret; or
4.During the Grantee’s employment or service with the Employer or thereafter, the Grantee breaches any other written confidentiality, non-solicitation or non-competition covenant with the Employer.
viii.“Person” shall mean any individual, entity or group, including any “person” or “group” within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision.  
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