Document:

Exhibit

Exhibit 10.1
Without prejudice and subject to contract

	
			
	 
	DATED 25 NOVEMBER 2019
	 

	 
	 
	 

	 
	CABOT CREDIT MANAGEMENT LIMITED
	(1)

	 
	and
	 

	 
	ENCORE CAPITAL GROUP, INC.
	(2)

	 
	and
	 

	 
	KENNETH JOHN STANNARD
	(3)

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	TRANSITION AGREEMENT
	 

THIS AGREEMENT is made on 25 November 2019 BETWEEN:
		
	(1)
	CABOT CREDIT MANAGEMENT LIMITED of 1 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4UA (company number 05754978) (“Employer”/ “we”/ “us”); 

		
	(2)
	ENCORE CAPITAL GROUP, INC. whose principal executive offices are 350 Camino de la Reina, San Diego, California, 92108 (“Encore”); and

		
	(3)
	KENNETH JOHN STANNARD of ## #### ####, ###### ### ### (“Employee”/ “you”).

BACKGROUND
		
	(A)
	Your contract of employment will be terminated by mutual consent.

		
	(B)
	You have or may have the claims particularised in clause 6.3, as well as various other claims arising out of your contract of employment and its termination which are not subject to statutory contracting-out restrictions.

		
	(C)
	The parties wish to enter into this Agreement on the terms set out below.

		
	1
	Termination of employment

		
	1.1
	We hereby give notice that your contract of employment will terminate on 15 March 2021 (“Termination Date”), with 12 months’ notice commencing on 16 March 2020 (“Notice Date”). 

		
	2
	Pre-termination obligations

		
	2.1
	In this clause “Pre-Notice Period” means the period from the date of this Agreement to the Notice Date.

		
	2.2
	During the Pre-Notice Period you will:

		
	2.2.1
	until 31 December 2019 continue to perform your duties as the Cabot Group Chief Executive Officer (“CEO”);

		
	2.2.2
	with effect from 1 January 2020 cease to be the Cabot Group CEO, but will continue as a senior employee with the job title of ‘consultant’ and from 1 January 2020 your line manager will be the Encore CEO/Cabot Group CEO; and

		
	2.2.3
	throughout the period perform the tasks set out in Schedule 1 to this Agreement

to the best of your abilities and in accordance with the terms of the Contract of Employment, as amended by the terms of this Agreement.
		
	2.3
	You will be placed on leave for your 12 month notice period (namely the period from the Notice Date up to and including the Termination Date) (“Garden Leave”) in accordance with the following provisions, which will replace any corresponding provisions in the Contract of Employment.

		
	2.4
	During the period of Garden Leave:

		
	2.4.1
	you will not be required to undertake any duties for us;

		
	2.4.2
	we may revoke any powers you hold on behalf of the Employer or any Group Company and may remove you from any office in the Employer or any Group Company;

		
	2.4.3
	you will ensure that the Cabot Group CEO (Craig Buick or his replacement) knows generally where you will be and how you can be contacted during each working day (except during any periods taken as holiday in the usual way);

		
	2.4.4
	you will take all outstanding annual leave prior to the Termination Date;

		
	2.4.5
	you will not enter our premises without the prior written approval of the Cabot Group CEO (Craig Buick or his replacement);

		
	2.4.6
	save for contact on behalf of the Cabot Group, you will not contact (or attempt to contact) the employees, agents, clients, distributors, licensees, licensors or customers of the Employer or of any Group Company without the prior written approval of the Cabot Group CEO (Craig Buick or his replacement);

		
	2.4.7
	save for contact on behalf of the Cabot Group, you will not discuss the business or affairs of the Employer or any Group Company with the employees, agents, clients, distributors, licensees, licensors or customers of the Employer, or of any Group Company without the prior written approval of the Cabot Group CEO (Craig Buick or his replacement); and 

		
	2.4.8
	you will remain bound by the obligations of loyalty and good faith, of exclusive service and of confidentiality, which preclude you taking up any other employment.

		
	2.5
	Nothing in this Agreement shall prevent us from:

		
	2.5.1
	exercising our rights under the Contract of Employment; or

		
	2.5.2
	terminating the Contract of Employment without notice or payment in lieu of notice 

prior to the Termination Date in either case if you commit an act of gross misconduct or any fundamental breach of contract (“Summary Dismissal”).
		
	2.6
	In the event of your Summary Dismissal before the Termination Date we shall be obliged to pay you only those sums which have accrued up to the date of the Summary Dismissal and neither us nor Encore shall have any further liability under this Agreement (in particular for Encore to exercise its discretion in your favour under clause 5.1) or any other agreements referred to in it. In the event of your Summary Dismissal this Agreement shall be void and have no further force or effect. 

		
	2.7
	Subject to clause 2.8 during the period of Garden Leave, you will be permitted to request (and provided your request is granted) to be employed, engaged, concerned or interested in any trade or business or occupation provided that such trade or business is not competing with the Restricted Business (as defined in your Contract of Employment) (“Alternative Role”). 

		
	2.7.1
	If you are offered an Alternative Role, you must request and gain approval in writing from your line manager before accepting an Alternative Role.  If such approval is granted and you elect to take up such an Alternative Role, you will inform your manager in writing as soon as reasonably possible of your start date (“Start Date”).

		
	2.7.2
	Prior to the Start Date you will (and will procure that your independent adviser will) enter into a replacement transition agreement (“Replacement Agreement”) which will be in the same form as this Agreement save that:

		
	(i)
	the termination date will be the day before the Start Date;

		
	(ii)
	you will be paid in lieu of your basic salary for the balance of the Garden Leave period, less tax, national insurance and any statutory deductions;

		
	(iii)
	subject as follows you will not be entitled to any benefits for the balance of the Garden Leave period;

		
	(iv)
	you will retain the benefit of the Long Term Incentive Plan under clause 5.1

		
	(v)
	you will retain the benefit of the bonus under clause 3.4;

		
	(vi)
	no additional contributions towards your legal costs will be made;

		
	(vii)
	the reaffirmation letter under clause 4 will not be required;

		
	(viii)
	you will remain bound by the terms of your restrictive covenants in accordance with clause 7.4; and

		
	(ix)
	the terms of the replacement transition agreement will be amended to reflect any other consequential changes required to give effect to your early departure.

		
	2.7.3
	We will provide you with a Replacement Agreement reflecting the above prior to the Start Date.

		
	2.8
	During the period of Garden Leave you will be permitted to be employed, engaged, concerned or interested at an advisory or board level (so as a non-executive director or chairman) in any trade or business or occupation subject to such trade or business not competing with the Restricted Business (as defined in your Contract of Employment) (“Alternative Advisory Role”). If you are offered an Alternative Advisory Role, you must request and gain approval in writing from your line manager before accepting an Alternative Advisory Role.  If such approval is granted and you elect to take up such an Alternative Advisory Role, you will inform your manager in writing as soon as reasonably possible of your start date and your entitlement to pay and benefits under 3.1 will continue.  This Agreement will remain in effect and your employment, subject to the terms of this Agreement, will continue to the Termination Date. You will remain entitled to the benefit of the Long Term Incentive Plan under clause 5.1 and will be required to still execute the reaffirmation letter under clause 4.

		
	3
	Final arrangements

		
	3.1
	Subject to clause 3.5, you will be paid your normal salary and provided with your normal benefits up to and including the Termination Date in the usual way, and to the extent that payment of salary has not already been made, we will pay any arrears within the Payment Period.

		
	3.2
	We will reimburse you within the Payment Period in respect of expenses properly and reasonably incurred, subject to your compliance with our rules and procedures relating to expenses and the production of satisfactory VAT receipts no later than 10 January 2021.

		
	3.3
	You agree that all amounts owing to the Employer in respect of loans or advances against anticipated expenses will be repayable in full on the date this Agreement is completed and you hereby authorise us to deduct any amounts so due from the payments due to you pursuant to this Agreement.

		
	3.4
	You will be paid a bonus for the 2019 bonus period. The amount of this bonus will be determined under Encore’s Key Contributor Plan (“KCP”) linked to both Encore’s achievement of performance measures (“2019 KCP Funding Percentage”) and an individual evaluation of your performance against your 2019 objectives (“Individual Performance Percentage”).  It has been agreed that your Individual Performance Percentage shall be assessed at no less than your 2019 KCP bonus target percentage of 87.5% of base salary previously established by the Remuneration Committee and Compensation Committees. The 2019 KCP Funding Percentage shall be assessed by the Remuneration Committee and Compensation Committee and Encore’s professional advisers in the normal way and the same percentage will be used in the calculation of your bonus as is used in the calculation of the bonuses of all Encore Named Executive Officers.  Any bonus payment due will be paid to you in the normal payroll run in March 2020 and will be paid subject to tax, national insurance and any statutory deductions.  You agree that you will not be entitled to any bonus for the 2020 or 2021 bonus periods.

		
	3.5
	Save as expressly provided in this Agreement you will not be entitled to any compensation for the loss of any rights or benefits under any bonus scheme, share option or incentive plan or profit sharing scheme operated by the Employer or any Group Company.

		
	3.6
	We will upon receiving a request from any prospective employer addressed to the UK HR department provide a factual reference as is our policy, complying as necessary with the financial services regime in which the Employer or any Group Company operates.

		
	3.7
	We will issue an announcement on or around the date this Agreement is completed substantially in the terms of the draft attached to this Agreement in Schedule 2 and will deal with any resulting enquires in a manner which is consistent with its terms.  You will not make any public comment or issue an announcement or press release about the termination of your employment or the events giving rise to it other than in the terms set out at Schedule 2.

		
	4
	Re-affirmation letter

		
	4.1
	On or shortly after the Termination Date, in return for a payment of £100.00 (less tax, national insurance and any other statutory deductions), such payment to be made within the Payment Period you will sign and date a reaffirmation letter in the form attached at Schedule 3, with such amendments to the list of claims in paragraph 2.3 as we may reasonably request to ensure that all claims which you have or may have in relation to your employment or its termination are validly compromised and settled up to the Termination Date.

		
	4.2
	You will also ensure that the adviser named in clause 12 (or another relevant independent adviser as defined in section 203 ERA) signs and dates a letter in the form set out in Appendix 1 to the Re-affirmation letter.

		
	4.3
	Cabot’s obligations under this Agreement (except under clause 3.1) are conditional on Cabot receiving the letters referred to in this clause duly signed and dated within five working days of the Termination Date.

		
	5
	Long Term Incentive Plan 

		
	5.1
	Without admission of liability, subject to your compliance with the terms of this Agreement and on condition that the warranties in clauses 6.5, 10.2, and 11 are true, Encore will exercise its discretion to determine that, notwithstanding this Agreement, you have not had a Termination of Service (as defined in the Long Term Incentive Plan) with respect to awards granted to you pursuant to the Long Term Incentive Plan. As such you will 

continue to service vest in awards granted under the Long Term Incentive Plan which are due to vest in March 2020, July 2020 and March 2021. 
		
	6
	Release and compromise

		
	6.1
	You agree that the benefit referred to in clause 5.1 is in full and final settlement of all claims or rights of action of any kind whatsoever which you may have against

		
	6.1.1
	the Employer; and/or

		
	6.1.2
	Encore; and/or

		
	6.1.3
	any Group Company; and/or

		
	6.1.4
	any Connected Person.

in relation to your employment, its termination and any related or connected matter.
		
	6.2
	For the avoidance of doubt the settlement in clause 6.1 extends to all claims:

		
	6.2.1
	whether arising under statute (including any directions or regulations made thereunder), at common law (including contractual claims), under the Employer’s Constitution, in equity or under any EU Directive, regulation or other legislation applicable in the United Kingdom and enforceable against the Employer or Encore or any other person stipulated in clause 6.1; and

		
	6.2.2
	whether arising in the United Kingdom or in any other country in the world; and

		
	6.2.3
	arising out of facts existing at the date of this Agreement whether or not the legal basis for such a claim was known to you at that date and whether or not such facts were known to you at that date.

		
	6.3
	This Agreement relates to the following claims subject to statutory contracting-out restrictions which you have or may have against the Employer, Encore, any Group Company and any Connected Person namely:

		
	6.3.1
	any claim to wages under Part II Employment Rights Act 1996 (“ERA”);

		
	6.3.2
	any claim for unfair dismissal under Part X ERA;

		
	6.3.3
	any claim for redundancy under Part XI ERA;

		
	6.3.4
	any claim for detriment under section 47B ERA;

		
	6.3.5
	any other claim under the ERA including but not limited to any other claim for detriment under Part V ERA;

		
	6.3.6
	any claim for detriment brought under section 146 Trade Union and Labour Relations (Consolidation) Act 1992;

		
	6.3.7
	any claim for statutory holiday pay arising under regulation 14 or 16 Working Time Regulations 1998;

		
	6.3.8
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to race, colour, nationality or ethnic or national origins brought under section 120 Equality Act 2010;

		
	6.3.9
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to religion or belief brought under section 120 Equality Act 2010;

		
	6.3.10
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to sex brought under section 120 Equality Act 2010;

		
	6.3.11
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to gender reassignment brought under section 120 Equality Act 2010;

		
	6.3.12
	any claim for discrimination or victimisation because of or related to pregnancy and maternity brought under section 120 Equality Act 2010;

		
	6.3.13
	any claim for discrimination (whether direct or indirect) or victimisation because of or related to marriage and civil partnership brought under section 120 Equality Act 2010;

		
	6.3.14
	any claim brought under or by reference to the Equal Pay Act 1970 or for equality of terms brought under section 120 or 127 Equality Act 2010 and any related claim for victimisation;

		
	6.3.15
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to sexual orientation brought under section 120 Equality Act 2010;

		
	6.3.16
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to age brought under section 120 Equality Act 2010;

		
	6.3.17
	any claim for discrimination (including direct, indirect and in respect of failure to make adjustments), harassment or victimisation because of, arising from or related to disability brought under section 120 Equality Act 2010;

		
	6.3.18
	any claim for less favourable treatment or detriment brought under regulation 8 Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000;

		
	6.3.19
	any claim for less favourable treatment or detriment brought under regulation 7 Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002;

		
	6.3.20
	any claim for detriment under section 23 National Minimum Wage Act 1998;

		
	6.3.21
	any claim under section 11 Employment Relations Act 1999;

		
	6.3.22
	any claim under regulation 27 or 32 Transnational Information and Consultation of Employees Regulations 1999;

		
	6.3.23
	any claim under part VIII Information and Consultation of Employees Regulations 2004; and

		
	6.3.24
	any claim under section 56 Pensions Act 2008.

		
	6.4
	You agree to refrain from instituting any of the claims set out in clause 6.3 (“Particularised Claims”).  The parties agree that each of the Particularised Claims is to be regarded as a particular complaint or particular proceedings for the purposes of the provisions of the relevant Act or Regulations referred to in clause 6.3.

		
	6.5
	This clause 6 does not compromise any claim for personal injury other than:

		
	6.5.1
	any personal injury claim arising from or in connection with any of the Particularised Claims;

		
	6.5.2
	any claim brought under the Protection from Harassment Act 1997; and

		
	6.5.3
	any claim for a psychiatric injury of any kind.

PROVIDED THAT by entering into this Agreement you warrant that there are no circumstances known to you, or which ought reasonably be known to you, which might give rise to any person injury claim against the Employer.
		
	6.6
	Nothing in this Agreement shall compromise your rights in respect of accrued pension rights, personal injury claims (subject to clause 6.5) or your ability to enforce the terms of this Agreement.

		
	7
	Confidentiality and restrictions

		
	7.1
	You agree to keep the circumstances surrounding the termination of your employment (save to explain the circumstances in the terms set out at Schedule 2, the existence and the terms of this Agreement confidential and not to disclose them to any third party save as required by law and save that you are permitted to make a disclosure that would otherwise be prohibited by this clause where this is necessary or appropriate:

		
	7.1.1
	to any person who owes you a duty of confidentiality (which you agree not to waive) in respect of information you disclose to them, including your legal or tax advisers or those providing you with medical, therapeutic or similar services; and

		
	7.1.2
	to your immediate family members provided such family members agree to keep what has been disclosed confidential.

		
	7.2
	Cabot agree to keep the circumstances surrounding the termination of your employment, the existence and the terms of this Agreement confidential and not to disclose them to any third party save as required by law and save that Cabot are permitted to make a disclosure that would otherwise be prohibited by this clause where this is necessary or appropriate:

		
	7.2.1
	to any person who owes Cabot a duty of confidentiality (which Cabot agree not to waive) in respect of information Cabot disclose to them, including Cabot’s legal, tax, compliance and other professional advisers;

		
	7.2.2
	to Cabot’s officers, agents and employees providing Cabot shall make reasonable endeavours to ensure that the recipients of this information keep it confidential; and

		
	7.2.3
	to comply with any rule or practice imposed upon or otherwise adopted by Cabot in the light of Cabot’s obligations to any regulatory authority or organisation to which Cabot are directly or indirectly accountable, whether financially or otherwise.

		
	7.3
	You shall not represent yourself as being employed by us after the Termination Date.

		
	7.4
	You confirm that you will continue to be bound by the implied and express duty of confidentiality and any restrictive covenants contained in your Contract of Employment. The periods of restriction stated at clause 15 of your Contract of Employment will be reduced by any period for which you are on Garden Leave (as per clause 15.8 of your Contract of Employment). 

		
	7.5
	You agree that you will not make or publish (whether directly or through a third party) any derogatory or defamatory remarks about the Employer, Encore, any Group Company or any Connected Person.

		
	7.6
	Cabot agree that Cabot will not as organisations make or publish any derogatory or defamatory remarks about you and nor will they authorise any Connected Person to make such remarks.

		
	7.7
	Nothing in this clause shall prevent you from:

		
	7.7.1
	making a protected disclosure under section 43A of the Employment Rights Act 1996; or

		
	7.7.2
	making a disclosure to a regulator regarding any misconduct, wrongdoing or serious breach of regulatory requirements, or reporting a criminal offence to any law enforcement agency.

		
	7.8
	Nothing in this clause shall prevent either party from:

		
	7.8.1
	co-operating with the police or any law enforcement agency regarding a criminal investigation or prosecution; or

		
	7.8.2
	whether required to or not, co-operating with any investigation by any regulatory authority regarding any misconduct, wrongdoing or serious breach of regulatory requirements; or

		
	7.8.3
	bringing or defending legal proceedings to enforce the terms of this Agreement.

		
	7.9
	In consideration of you accepting the restrictions set out in this clause 7 we will pay you within 28 days of the Termination Date an additional payment of £100.00 less tax, national insurance and any statutory deductions.

		
	8
	Tax and National Insurance

		
	8.1
	You hereby agree to be responsible for the payment of any further income tax and employees’ national insurance contributions in respect of payments received in connection with the termination of your employment and any payments made or benefits provided under this Agreement and hereby agree to indemnify the Employer and Encore and keep the Employer and Encore indemnified against all and any liabilities to taxation and employees’ national insurance (including in each case any associated penalties and interest together with any reasonable costs and expenses but excluding any interest, penalties, costs or expenses which arise due to the delay or default of the Employer and/or Encore) which the Employer and/or Encore may incur in respect of or by reason of such termination of employment and the payments made or benefits provided under this Agreement PROVIDED THAT the Employer and/or Encore will notify you as soon as possible that it or they have received a tax demand and prior to making any payment of tax in respect of the benefit referred to in clause 5.1), the Employer or Encore will forward to you particulars of the demand made by HM Revenue and Customs (“HMRC”) and allow you as much time as possible (taking into account 14 days (or such shorter period as is required by HMRC’s deadline for a response) in which to reply to HMRC directly with a copy of such response to the Employer and Encore.

		
	8.2
	The Employer agrees that it will provide reasonable assistance to you in respect of any points raised by HMRC in respect of the sale of the Employer in 2018. Such assistance 

shall include but not be limited to the provision of information to you. You shall be provided with support, whether financial or practical, which is at least at an equivalent level to support provided to current employees of the Employer in respect of the sale of the Employer.
		
	9
	Employee’s obligations

		
	9.1
	Subject to clause 9.2, you confirm that you will prior to the Termination Date return to us:

		
	9.1.1
	all property and equipment belonging to the Employer or any Group Company including but not limited to any laptop computer, computer software or hardware, electronic diaries/organisers, mobile/car telephones (including the original SIM card), fuel card, badges, security passes and keys, uniform; and

		
	9.1.2
	all passwords, databases, documents, records, correspondence, files and other information (whether originals, copies or extracts and howsoever stored) belonging to the Employer or any Group Company or which you have acquired in the course of your employment.

		
	9.2
	In the event that you accept an offer of an Alternative Role, you must prior to the start date of that Alternative Role return to us:

		
	9.2.1
	all property and equipment belonging to the Employer or any Group Company including but not limited to any laptop computer, computer software or hardware, electronic diaries/organisers, mobile/car telephones (including the original SIM card), fuel card, badges, security passes and keys, uniform; and

		
	9.2.2
	all passwords, databases, documents, records, correspondence, files and other information (whether originals, copies or extracts and howsoever stored) belonging to the Employer or any Group Company or which you have acquired in the course of your employment.

		
	9.3
	You will not retain any copies (in any form) of the items referred to in clause 9.1.2 or 9.2.2 and by signing this Agreement confirm that you have irretrievably deleted or destroyed any copies which would otherwise remain in your possession after full compliance with clause 9.1  or clause 9.2.

		
	9.4
	You have withdrawn:

		
	9.4.1
	any appeals and grievances against the Employer, Encore or any Group Company or any Connected Person;

		
	9.4.2
	any requests made to the Employer,  Encore or any Group Company under the Data Protection Act 2018; and

		
	9.4.3
	any complaints to an ombudsman or similar body in respect of your employment or its termination (including but not limited to your entitlement to any pensions and any other benefits).

		
	9.5
	You agree to make yourself reasonably available to, and to provide reasonable cooperation to, the Employer and/or Encore or their advisers in any internal investigation or administrative, regulatory, judicial or quasi-judicial proceedings.  You acknowledge that this could involve, but is not limited to, responding to or defending any regulatory or legal process, providing information in relation to any such process, preparing witness statements and giving evidence in person on behalf of the Employer and/or Encore. The Employer and/or Encore will reimburse you for any reasonable expenses, loss of salary and reasonable legal fees incurred by you (but any such legal fees will require prior approval from your manager). The Employer and Encore agree to provide reasonable cooperation to you in any internal investigation, administrative, regulatory, judicial or quasi-judicial proceedings including but not limited to providing information in relation to any such process.

		
	10
	Resignation of directorships and related matters

		
	10.1
	You will immediately do all such acts and things as the Employer may require to effect your resignation from all other offices to which you were appointed in connection with or by reason of your association with the Employer in any capacity including but not limited to trusteeships.

		
	10.2
	You warrant that as at the date of this Agreement you have committed no breach of duty (including fiduciary duty) against the Employer or any Group Company and that you are not aware of any such breach by any other employee or director of the Employer or any Group Company.

		
	10.3
	You agree that no payment is due to you from the Employer, Encore or any Group Company in respect of loss of office.

		
	10.4
	The Employer will procure that the Employer’s Directors and Officers Indemnity insurance remains in place for you for six years following the Termination Date.

		
	11
	Employee’s warranties

		
	11.1
	You warrant that, as at the date of this Agreement:

		
	11.1.1
	having taken advice from the Relevant Independent Adviser (as defined in clause 12.1) and having provided the Relevant Independent Adviser with full instructions):

		
	(i)
	you have or may have the claims comprised in the Particularised Claims;

		
	(ii)
	you do not have any other complaints or claims against the Employer, Encore or any Group Company which are subject to statutory restrictions on contracting out;

		
	(iii)
	you do not have any other claims against the Employer, Encore or any Group Company which are not fully compromised by this Agreement;

		
	(iv)
	you have not brought and will not bring proceedings of any nature against the Employer, Encore  or any Group Company; and

		
	(v)
	you do not have, have not brought and will not bring any such claims against any Connected Person.

		
	11.1.2
	you have not received an offer of new employment, or commenced any such employment. This warranty is only applicable as at the date of first signing of the Settlement Agreement, not the reaffirmation letter attached at Schedule 3.

		
	11.1.3
	there are no circumstances of which you are aware or ought reasonably to be aware which would amount to a repudiatory breach by you of any express or implied term of your Contract of Employment which would entitle (or would 

have entitled) us to terminate your Contract of Employment without notice or payment in lieu of notice (if you were still employed by us).
		
	11.1.4
	you have not made any statement or taken any steps prior to the date of this Agreement which would constitute a breach of any of the provisions of clause 7 if it had occurred after the date of this Agreement.

		
	11.1.5
	you have complied/will comply (as appropriate) with clauses 9.1 to 9.4 inclusive.

		
	11.2
	You acknowledge that the Employer has entered this Agreement in reliance on the warranties set out in this clause 11 and in clauses 6.5, 6.6 and 10.2, and that the Employer’s obligations under this Agreement and Encore’s obligation to facilitate the benefit in clause 5 are conditional on those warranties being true at the date of this Agreement.

		
	12
	Advice

		
	12.1
	You have received independent legal advice from a solicitor of the Senior Courts who holds a current practising certificate (“Relevant Independent Adviser”) as to the terms and effect of this Agreement and in particular its effect on your ability to pursue your rights before an Employment Tribunal in accordance with the provisions of the Acts and Regulations set out in clause 13.  The name of the Relevant Independent Adviser is Nikola Southern of Kingsley Napley LLP.

		
	12.2
	You are advised by the Relevant Independent Adviser that there is in force and there was at the time you received the advice referred to above, a contract of insurance or indemnity covering the risk of any claims by you in respect of loss arising in consequence of the advice.

		
	12.3
	You will procure that the Relevant Independent Adviser signs a certificate on or before the date of this Agreement substantially in the form of Schedule 4.

		
	12.4
	We will within 28 days of the production of an appropriate copy VAT invoice addressed to you but marked payable by us pay to Kingsley Napley LLP the maximum sum of £3,500.00 plus VAT in respect of your legal expenses incurred solely in relation to the termination of your employment.

		
	13
	Settlement agreements

		
	13.1
	The Employer, Encore and the Employee agree and acknowledge that the conditions regulating settlement agreements and compromise contracts contained in section 203 ERA; regulation 35 Working Time Regulations 1998; section 147 Equality Act 2010; section 77 Sex Discrimination Act 1975; section 288 Trade Union and Labour Relations (Consolidation) Act 1992; section 49 National Minimum Wage Act 1998; regulation 41 Transnational Information and Consultation of Employees Regulations 1999; regulation 40 Information and Consultation of Employees Regulations 2004; and section 58 Pensions Act 2008 are intended to be and have been satisfied.

		
	14
	Miscellaneous

		
	14.1
	If you breach any material provision of this Agreement or pursue a claim against the Employer, Encore or any Group Company arising out of your employment or its termination (other than those claims excluded under clauses 6.5 or 6.6) you agree to indemnify the Employer, Encore or any Group Company for any losses suffered as a result thereof, including all reasonable legal and professional fees incurred.

		
	15
	Third parties

		
	15.1
	The Employer and Encore enter into this Agreement on behalf of themselves and as authorised agent for all Group Companies.  The parties agree that the Contracts (Rights of Third Parties) Act 1999 shall apply to this Agreement to the extent necessary for any Group Company to enforce its rights under this Agreement.  However, no other terms of this Agreement shall be directly enforceable by any third party and the parties shall be free to vary or rescind any part of this Agreement (including clauses 5.1 and 7) by agreement between themselves without the consent of any such third party.

		
	16
	Whole agreement

		
	16.1
	This Agreement and any documents referred to in it sets out the entire agreement between the parties and supersedes all discussions between them and their advisers and all statements, representations, terms and conditions, warranties, guarantees, proposals, communications and understandings whenever given and whether orally or in writing.

		
	17
	Law and Jurisdiction

		
	17.1
	The validity, construction and performance of this Agreement and any dispute or claim arising out of or in connection with this Agreement or its formation or subject matter shall be governed by and construed in accordance with the laws of England and Wales.

		
	17.2
	The parties irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with this Agreement or its formation or subject matter.

		
	18
	Completion

		
	18.1
	Notwithstanding that this Agreement is marked “without prejudice” and “subject to contract” when it is signed by the Employer, the Employee and is accompanied by the certificate signed by the Relevant Independent Adviser in Schedule 4 and is dated it shall become an open and binding document.

		
	18.2
	This Agreement may be entered into in any number of counterparts, and each of the executed counterparts, when duly exchanged, shall be deemed to be an original, but, taken together, they shall constitute one and the same instrument.

		
	19
	Definitions

“Cabot” means the Employer and Encore.
“Cabot Holdco” means Cabot UK Holdco Limited of 1 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4UA (company number 03439445).
“Compensation Committee” means the compensation or remuneration committee operated by or for Encore from time to time.
“Connected Person” means any current or former: employee, worker, officer, agent, non-executive director, shareholder or member of the Employer, Encore or any Group Company.
“Contract of Employment” means the contract of employment between you and us dated 10 February 2014 as amended.
“Employer’s Constitution” means the Employer’s constitutional documents whether these be comprised in an Act of Parliament, statutory instruments, a charter and statutes, instruments and articles of government, by-laws, standing orders, memorandum and 

articles of association, regulations, policies, codes or any other document or documents under which the Employer is governed or operates;
“Group Company” means any parent undertaking or subsidiary undertaking of the Employer and any subsidiary of any such parent undertaking, with "parent undertaking" and "subsidiary undertaking" being defined in accordance with section 1162 Companies Act 2006 and including for the avoidance of doubt Encore and any Subsidiaries or Holding Companies of Encore.
“Long Term Incentive Plan” means the Encore 2017 Incentive Award Plan, as amended from time to time.
“Payment Period” means the period of 28 days starting with the Termination Date or the date of this Agreement, whichever is the later.
“Remuneration Committee” means the remuneration committee operated by or for Cabot Holdco and its UK Subsidiaries from time to time.
“Subsidiary” and “Holding Company” in relation to a company mean "subsidiary" and "holding company" as defined in section 1159 of the Companies Act 2006 and a company shall be treated, for the purposes only of the membership requirement contained in subsections 1159(1)(b) and (c), as a member of another company even if its shares in that other company are registered in the name of (a) another person (or its nominee), whether by way of security or in connection with the taking of security, or (b) a nominee.

Schedule 1: pre-notice tasks
You will undertake the following activities during the Pre-Notice Period, in addition to your normal role (the latter up to 31 December 2019) which will be flexed as necessary given your departure):
		
	•
	provide a comprehensive handover to the new appointed CEO;

		
	•
	undertake Town Halls/Road Shows, client visits and any other activities referenced in the Cabriolet communications plan;

		
	•
	anything else the new CEO/your line manager feel is needed to support a smooth transition;

		
	•
	assist the new CEO with specific projects and transition activities; and

		
	•
	undertake additional work as directed by the new CEO/the Encore CEO which they will communicate over time, and which will be commensurate with your role as the Cabot CEO.

Schedule 2: announcement

[On the following pages]

Encore Announces Leadership Transition for its European Subsidiary, Cabot Credit Management 

SAN DIEGO, November xx, 2019 — Encore Capital Group, Inc. (Nasdaq: ECPG), an international specialty finance company, today announced the departure of Ken Stannard, Executive Director and Chief Executive Officer of its European subsidiary, Cabot Credit Management and, subject to certain regulatory approvals, the appointment of Craig Buick as his successor.  Stannard will be stepping down effective at the end of 2019. 

“Under Ken’s leadership, Cabot became one of the largest credit management services providers in Europe, including its market leadership position in the UK and Ireland, as well as being the first large credit management service company in the UK to be authorized by the FCA,” said Ashish Masih, Encore’s President and Chief Executive Officer.  

Stannard joined Marlin Financial Group in 2012, became its CEO in 2013, and became Cabot’s CEO in 2014 when Cabot acquired Marlin. Stannard’s experience was instrumental in the years that followed as Cabot transitioned from being partially owned by Encore to becoming a wholly owned subsidiary in 2018. With the integration of Cabot into the Encore Capital Group now complete, Stannard has decided the time is right to step down from his role as Cabot’s chief executive and reflect on his next challenge. Stannard has agreed to stay on for a period to support the successful transition of Cabot’s leadership to Buick.

Buick has served as the Chief Financial Officer of Cabot, working alongside Stannard since 2016.  Buick qualified as a Chartered Accountant with PricewaterhouseCoopers and held various senior finance and audit leadership roles within PricewaterhouseCoopers and GE Capital across Europe before joining Cabot.   

“Craig is a seasoned leader with a strong financial background, a track record of execution and proven leadership capabilities.  He has a deep understanding of our products and the complex European markets,” said Stannard. “Cabot is one of those rare companies that I believe has truly revolutionized the credit management industry through its continued pursuit of customer centric practices. I have been privileged to have led a committed and innovative team of leaders. I know that Craig is well placed to continue to drive Cabot forward on its journey to be the best at what it does.”

“We thank Ken for his service and wish him and his family all the best.  We are fortunate to have someone of the caliber and experience of Craig to step up to lead our Cabot business,” said Masih. “This transition is the result of our effective succession planning process and keeps Cabot, and ultimately Encore, optimally positioned for continued long-term success and growth."

About Encore Capital Group, Inc.
Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases or services portfolios of receivables from major banks, credit unions and utility providers.

Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com. More information about the Company’s Midland Credit Management subsidiary can be found at http://www.midlandcreditonline.com. More information about the 

Company's Cabot Credit Management subsidiary can be found at http://www.cabotcm.com. Information found on the company’s, MCM’s, or Cabot’s website is not incorporated by reference.

Contact 
press@encorecapital.com

Bruce Thomas, Investor Relations  
(858) 309-6442  
bruce.thomas@encorecapital.com

Tracy Ting, Chief Human Resources Officer 
(858) 309-9271 
tracy.ting@encorecapital.com

Source: Encore Capital Group Inc

Schedule 3 re-affirmation letter
[On headed notepaper of Employer]
KEN STANNARD
## #### ####
######
### ###
[DATE]
Dear Ken,
Reaffirmation Letter
This is the letter referred to in clause 4 of the settlement agreement that was concluded between you, the Employer and Encore Capital Group Inc. (“Encore”) on [DATE] (the “Settlement Agreement”).
By signing this letter (“this Letter”) you expressly agree the following:
		
	1
	Interpretation

		
	1.1
	Words and expressions defined in the Settlement Agreement shall bear the same meanings in this Letter, save that: “Relevant Independent Adviser” means the adviser specified in paragraph 3 of this Letter.

		
	1.2
	References in the remaining paragraphs of this Letter to clauses are to clauses in the Settlement Agreement.

		
	2
	Release and compromise

		
	2.1
	You agree that the benefit referred to in clause 5.1 is in full and final settlement of all claims or rights of action of any kind whatsoever which you may have against the Employer, Encore and/or any Group Company and/or any Connected Person in relation to your employment, its termination and any related or connected matter.

		
	2.2
	For the avoidance of doubt the settlement in paragraph 2.1 extends to all claims:

		
	2.2.1
	whether arising under statute (including any directions or regulations made thereunder), at common law (including contractual claims), under the Employer’s Constitution, in equity or under any EU Directive, regulation or other legislation applicable in the United Kingdom and enforceable against the Employer or Encore or any other person stipulated in paragraph 2.1; and

		
	2.2.2
	whether arising in the United Kingdom or in any other country in the world; and

		
	2.2.3
	arising out of facts existing at the date of this Agreement whether or not the legal basis for such a claim was known to the Employee at that date and whether or not such facts were known to the Employee at that date.

		
	2.3
	This Letter relates to the following claims subject to statutory contracting-out restrictions which you have or may have against the Employer, Encore, any Group Company and any Connected Person namely:

		
	2.3.1
	any claim to wages under Part II Employment Rights Act 1996 (“ERA”);

		
	2.3.2
	any claim for unfair dismissal under Part X ERA;

		
	2.3.3
	any claim for redundancy under Part XI ERA;

		
	2.3.4
	any claim for detriment under section 47B ERA;

		
	2.3.5
	any other claim under the ERA including but not limited to any other claim for detriment under Part V ERA;

		
	2.3.6
	any claim for detriment brought under section 146 Trade Union and Labour Relations (Consolidation) Act 1992;

		
	2.3.7
	any claim for statutory holiday pay arising under regulation 14 or 16 Working Time Regulations 1998;

		
	2.3.8
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to race, colour, nationality or ethnic or national origins brought under section 120 Equality Act 2010;

		
	2.3.9
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to religion or belief brought under section 120 Equality Act 2010;

		
	2.3.10
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to sex brought under section 120 Equality Act 2010;

		
	2.3.11
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to gender reassignment brought under section 120 Equality Act 2010;

		
	2.3.12
	any claim for discrimination or victimisation because of or related to pregnancy and maternity brought under section 120 Equality Act 2010;

		
	2.3.13
	any claim for discrimination (whether direct or indirect) or victimisation because of or related to marriage and civil partnership brought under section 120 Equality Act 2010;

		
	2.3.14
	any claim brought under or by reference to the Equal Pay Act 1970 or for equality of terms brought under section 120 or 127 Equality Act 2010 and any related claim for victimisation;

		
	2.3.15
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to sexual orientation brought under section 120 Equality Act 2010;

		
	2.3.16
	any claim for discrimination (whether direct or indirect), harassment or victimisation because of or related to age brought under section 120 Equality Act 2010;

		
	2.3.17
	any claim for discrimination (including direct, indirect and in respect of failure to make adjustments), harassment or victimisation because of, arising from or related to disability brought under section 120 Equality Act 2010;

		
	2.3.18
	any claim for less favourable treatment or detriment brought under regulation 8 Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000;

		
	2.3.19
	any claim for less favourable treatment or detriment brought under regulation 7 Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002;

		
	2.3.20
	any claim for detriment under section 23 National Minimum Wage Act 1998;

		
	2.3.21
	any claim under section 11 Employment Relations Act 1999;

		
	2.3.22
	any claim under regulation 27 or 32 Transnational Information and Consultation of Employees Regulations 1999;

		
	2.3.23
	any claim under part VIII Information and Consultation of Employees Regulations 2004; and

		
	2.3.24
	any claim under section 56 Pensions Act 2008.

		
	2.4
	You agree to refrain from instituting any of the claims set out in paragraph 2.3 (“Particularised Claims”).  The parties agree that each of the Particularised Claims is to be regarded as a particular complaint or particular proceedings for the purposes of the provisions of the relevant Act or Regulations referred to in paragraph 2.3.

		
	2.5
	This paragraph 2 does not compromise any claim for personal injury other than:

		
	2.5.1
	any personal injury claim arising from or in connection with any of the Particularised Claims;

		
	2.5.2
	any claim brought under the Protection from Harassment Act 1997; and

		
	2.5.3
	any claim for a psychiatric injury of any kind.

PROVIDED THAT by entering into this Agreement you warrant that there are no circumstances known to you, or which ought reasonably be known to you, which might give rise to any person injury claim against the Employer.
		
	2.6
	Nothing in this Agreement shall compromise your rights in respect of accrued pension rights, personal injury (subject to paragraph 2.5) or your ability to enforce the terms of this Agreement (the “Excluded Claims”).

		
	3
	Advice

		
	3.1
	You have received independent legal advice from a solicitor of the Senior Courts who holds a current practising certificate (“Relevant Independent Adviser”) as to the terms and effect of this Agreement and in particular its effect on your ability to pursue your rights before an Employment Tribunal in accordance with the provisions of the Acts and Regulations set out in clause 13.  The name of the Relevant Independent Adviser is Nikola Southern of Kingsley Napley LLP.

		
	3.2
	You are advised by the Relevant Independent Adviser that there is in force and there was at the time you received the advice referred to above, a contract of insurance or indemnity covering the risk of any claims by you in respect of loss arising in consequence of the advice.

		
	3.3
	You will procure that the Relevant Independent Adviser signs a certificate on or before the date of this Agreement substantially in the form of Appendix 1 to this Letter.

		
	3.4
	We will within 28 days of the production of an appropriate copy VAT invoice addressed to you but marked payable by us pay to the Kingsley Napley LLP the maximum sum of £100.00 plus VAT in respect of your legal expenses incurred solely in relation to the termination of your employment.

		
	4
	Warranties

		
	4.1
	You warrant that, as at the date of this letter:

		
	4.1.1
	having taken advice from the Relevant Independent Adviser and having provided the Relevant Independent Adviser with full instructions):

		
	4.1.2
	you have or may have the claims comprised in the Particularised Claims;

		
	4.1.3
	you do not have any other complaints or claims against the Employer, Encore or any Group Company which are subject to statutory restrictions on contracting out (save for the Excluded Claims);

		
	4.1.4
	save as provided in clause 6.5  and the Excluded Claims, you do not have any other claims against the Employer, Encore or any Group Company which are not fully compromised by the Settlement Agreement or this Reaffirmation Letter;

		
	4.1.5
	you have not brought and will not bring proceedings of any nature against the Employer, Encore or any Group Company (save for the Excluded Claims); and

		
	4.1.6
	you do not have, have not brought and will not bring any such claims against any Connected Person (save for the Excluded Claims).

		
	4.2
	You repeat the warranties set out in clauses 11.1.3, 11.1.4, and 11.1.5 and confirm that they were true at the date of the Settlement Agreement and remain true at the date of this letter.

		
	4.3
	You acknowledge that the Employer and Encore have entered the Settlement Agreement in reliance on the warranties set out in clause 11 and that the Employer’s and Encore’s obligations under the Settlement Agreement (save as provided in clause 4.3) are further conditional on the additional warranties set out in this Letter. The Employer and Encore confirm that by signing this Letter, you are not repeating the warranty at clause 11.1.2 of the Settlement Agreement. 

		
	5
	Settlement agreements

		
	5.1
	The Employer, Encore and the Employee agree and acknowledge that the conditions regulating settlement agreements and compromise contracts contained in section 203 ERA; regulation 35 Working Time Regulations 1998; section 147 Equality Act 2010; section 77 Sex Discrimination Act 1975; section 288 Trade Union and Labour Relations (Consolidation) Act 1992; section 49 National Minimum Wage Act 1998; regulation 41 Transnational Information and Consultation of Employees Regulations 1999; regulation 40 Information and Consultation of Employees Regulations 2004; and section 58 Pensions Act 2008 are intended to be and have been satisfied.

	
	
	Signed .....................................................
For and on behalf of Cabot Credit Management Limited and Encore Capital Group Inc.

	I agree to the above terms

	Signed .....................................................

	KENNETH JOHN STANNARD

	Date ........................................................

Appendix 1: adviser’s certificate to the reaffirmation letter
I, [NAME OF ADVISER] confirm that I have given relevant independent advice to KENNETH JOHN STANNARD (“my client”) as to the terms and effect of the agreement between CABOT CREDIT MANAGEMENT LIMITED, ENCORE CAPITAL GROUP INC. and KENNETH JOHN STANNARD dated [DATE] and the reaffirmation letter signed by those parties dated [DATE] and in particular their effect on my client’s ability to pursue my client’s rights before an Employment Tribunal.
I confirm that I am a solicitor of the Senior Courts who holds a current practising certificate and am not prevented from acting as an independent adviser by section 203 ERA or any other relevant statutory provision and that there is in force and there was at the time I gave the advice referred to cover under a contract of insurance or an indemnity provided for members of a profession or professional body covering the risk of a claim by my client in respect of loss arising in consequence of that advice.
	
		
	 
	 

	Signed:
	   

	 
	 

	Dated:
	   

Schedule 4: adviser’s certificate to the settlement agreement
I, Nikola Southern confirm that I have given relevant independent advice to KENNETH JOHN STANNARD (“my client”) as to the terms and effect of the agreement between CABOT CREDIT MANAGEMENT LIMITED,    ENCORE CAPITAL GROUP INC. and KENNETH JOHN STANNARD and in particular its effect on my client’s ability to pursue my client’s rights before an Employment Tribunal.
I confirm that I am a solicitor of the Senior Courts who holds a current practising certificate and am not prevented from acting as an independent adviser by section 203 ERA or any other relevant statutory provision and that there is in force and there was at the time I gave the advice referred to cover under a contract of insurance or an indemnity provided for members of a profession or professional body covering the risk of a claim by my client in respect of loss arising in consequence of that advice.
Signed: /s/ Nikola Southern
Dated: 20/11/19

[Execution page to the settlement agreement]

	
		
	Signed:
	/s/ Craig Buick

	 
	For and on behalf of the Employer

	 
	 

	Signed:
	/s/ Ashish Masih

	 
	For and on behalf of Encore

	 
	 

	Signed:
	/s/ Kenneth Stannard

	 
	EmployeeExhibit 10.1

 

HUITAO TECHNOLOGY CO., LTD.

AMENDMENT NO. 1 TO 2019 EQUITY INCENTIVE PLAN

 

1. Purpose.
The purpose of the Huitao Technology Co., Ltd. 2019 Equity Incentive Plan is to provide a means through which the Company and its
Affiliates may attract and retain key personnel and to provide a means whereby directors, officers, managers, employees, consultants
and advisors (and prospective directors, officers, managers, employees, consultants and advisors) of the Company and its Affiliates
can acquire and maintain an equity interest in the Company, or be paid incentive compensation, which may (but need not) be measured
by reference to the value of Ordinary shares, thereby strengthening their commitment to the welfare of the Company and its Affiliates
and aligning their interests with those of the Company’s Shareholders.

 

2. Definitions.
The following definitions shall be applicable throughout this Plan:

 

(a) “Affiliate”
means (i) any person or entity that directly or indirectly controls, is controlled by or is under common control with the Company
and/or (ii) to the extent provided by the Committee, any person or entity in which the Company has a significant interest as determined
by the Committee in its discretion. The term “control” (including, with correlative meaning, the terms “controlled
by” and “under common control with”), as applied to any person or entity, means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of such person or entity, whether through the ownership
of voting or other securities, by contract or otherwise.

 

(b) “Award”
means, individually or collectively, any Incentive Share Option, Nonqualified Share Option, Share Appreciation Right, Restricted
Share, Restricted Share Unit, Share Bonus Award and Performance Compensation Award granted under this Plan.

 

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

 

(d) “Business
Combination” has the meaning given such term in the definition of “Change in Control.”

 

(e) “Business
Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in New York City are
authorized or obligated by federal law or executive order to be closed.

 

(f) “Cause”
means, in the case of a particular Award, unless the applicable Award agreement states otherwise, (i) the Company or an Affiliate
having “cause” to terminate a Participant’s employment or service, as defined in any employment or consulting
agreement or similar document or policy between the Participant and the Company or an Affiliate in effect at the time of such termination
or (ii) in the absence of any such employment or consulting agreement, document or policy (or the absence of any definition of
“Cause” contained therein), (A) a continuing material breach or material default (including, without limitation, any
material dereliction of duty) by Participant of any agreement between the Participant and the Company, except for any such breach
or default which is caused by the physical disability of the Participant (as determined by a neutral physician), or a continuing
failure by the Participant to follow the direction of a duly authorized representative of the Company; (B) gross negligence, willful
misfeasance or breach of fiduciary duty by the Participant; (C) the commission by the Participant of an act of fraud, embezzlement,
misappropriation of the Company or its Affiliate’s assets or any felony or other crime of dishonesty in connection with the
Participant’s duties; (D) conviction of the Participant of a felony or any other crime that would materially and adversely
affect: (i) the business reputation of the Company or (ii) the performance of the Participant’s duties to
the Company, or (E) failure by a Participant to follow the lawful directions of a superior officer or the Board. Any determination
of whether Cause exists shall be made by the Committee in its sole discretion. 

 

     

     

    

 

(g) “Change
in Control” shall, in the case of a particular Award, unless the applicable Award agreement states otherwise or contains
a different definition of “Change in Control,” be deemed to occur upon:

 

(i) An
acquisition (whether directly from the Company or otherwise) of any voting securities of the Company (the “Voting Securities”)
by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities and Exchange Act
of 1934, as amended (the “Exchange Act”)), immediately after which such Person has ownership of more
than two thirds (2/3) of the combined voting power of the Company’s then outstanding Voting Securities.

 

(ii) The
individuals who constitute the members of the Board cease, by reason of a financing, merger, combination, acquisition, takeover
or other non-ordinary course transaction affecting the Company, to constitute at least forty percent (40%) of the members of the
Board; or

 

(iii) The
consummation of any of the following events:

 

(A) A
merger, consolidation or reorganization involving the Company, where either or both of the events described in clauses (i) or (ii)
above would be the result;

 

(B) A
liquidation or dissolution of or appointment of a receiver, rehabilitator, conservator or similar person for, or the filing by
a third party of an involuntary bankruptcy against, the Company; provided, however, that to the extent necessary to comply with
Section 409A of the Code, the occurrence of an event described in this subsection (B) shall not permit the settlement of Restricted
Share Units granted under this Plan; or

 

(C) An
agreement for the sale or other disposition of all or substantially all of the assets of the Company to any Person (other than
a transfer to a subsidiary of the Company).

 

(h) “Closing
Price” means (A) during such time as the Ordinary shares are registered under Section 12 of the Exchange Act, the
closing price of the Ordinary shares as reported by an established Share exchange or automated quotation system on the day for
which such value is to be determined, or, if no sale of the Ordinary shares shall have been made on any such Share exchange or
automated quotation system that day, on the next preceding day on which there was a sale of such Ordinary shares, or (B) during
any such time as the Ordinary shares are not listed upon an established Share exchange or automated quotation system, the mean
between dealer “bid” and “ask” prices of the Ordinary shares in the over-the-counter market on the day
for which such value is to be determined, as reported by the Financial Industry Regulatory Authority, Inc., or (C) during any such
time as the Ordinary shares cannot be valued pursuant to (A) or (B) above, the fair market value shall be as determined by the
Committee considering all relevant information including, by example and not by limitation, the services of an independent appraiser.

 

(i) “Code”
means the Internal Revenue Code of 1986, as amended, and any successor thereto. References in this Plan to any section of the Code
shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successor
provisions to such section, regulations or guidance.

 

(j) “Committee”
means a committee of at least two people as the Board may appoint to administer this Plan or, if no such committee has been appointed
by the Board, the Board. Unless altered by an action of the Board, the Committee shall be the Compensation Committee of the Board.

 

(k) “Ordinary
shares” means the ordinary shares, par value $0.001 per share, of the Company (and any Share or other securities
into which such ordinary shares may be converted or into which they may be exchanged).

 

(l) “Company”
means Huitao Technology Co., Ltd., a Cayman Islands company, together with its successors and assigns.

 

(m) “Date
of Grant” means the date on which the granting of an Award is authorized, or such other date as may be specified
in such authorization.

 

(n) “Disability”
means a “permanent and total” disability incurred by a Participant while in the employ of the Company or an Affiliate.
For this purpose, a permanent and total disability shall mean that the Participant is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months.

 

    2

     

    

 

(o) “Effective
Date” means the date when the Plan is adopted by the Board.

 

(p) “Eligible
Director” means a person who is (i) a “non-employee director” within the meaning of Rule 16b-3 under
the Exchange Act, and (ii) an “outside director” within the meaning of Section 162(m) of the Code.

 

(q) “Eligible
Person” means any (i) individual employed by the Company or an Affiliate; provided, however,
that no such employee covered by a collective bargaining agreement shall be an Eligible Person unless and to the extent that such
eligibility is set forth in such collective bargaining agreement or in an agreement or instrument relating thereto; (ii) director
of the Company or an Affiliate; (iii) consultant or advisor to the Company or an Affiliate, provided that if the Securities Act
applies such persons must be eligible to be offered securities registrable on Form S-8 under the Securities Act; or (iv) prospective
employees, directors, officers, consultants or advisors who have accepted offers of employment or consultancy from the Company
or its Affiliates (and would satisfy the provisions of clauses (i) through (iii) above once he or she begins employment with or
begins providing services to the Company or its Affiliates).

 

(r) “Exchange
Act” has the meaning given such term in the definition of “Change in Control,” and any reference in this
Plan to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other
interpretative guidance under such section or rule, and any amendments or successor provisions to such section, rules, regulations
or guidance.

 

(s) “Exercise
Price” has the meaning given such term in Section 7(b) of this Plan.

 

(t) “Fair
Market Value”, unless otherwise provided by the Committee in accordance with all applicable laws, rules regulations
and standards, means, on a given date, (i) if the Ordinary shares (A) are listed on a national securities exchange or (B) are not
listed on a national securities exchange, but is quoted by the OTC Markets Group, Inc. (www.otcmarkets.com) or any successor or
alternative recognized over-the-counter market or another inter-dealer quotation system, on a last sale basis, the average selling
price of the Ordinary shares reported on such national securities exchange or other inter-dealer quotation system, determined as
the arithmetic mean of such selling prices over the thirty (30)-Business Day period preceding the Date of Grant, weighted based
on the volume of trading of such Ordinary shares on each trading day during such period; or (ii) if the Ordinary shares are not
listed on a national securities exchange or quoted in an inter-dealer quotation system on a last sale basis, the amount determined
by the Committee in good faith to be the fair market value of the Ordinary shares. 

 

(u) “Immediate
Family Members” shall have the meaning set forth in Section 15(b) of this Plan.

 

(v) “Incentive
Share Option” means an Option that is designated by the Committee as an incentive Share option as described in Section
422 of the Code and otherwise meets the requirements set forth in this Plan.

 

(w) “Indemnifiable
Person” shall have the meaning set forth in Section 4(e) of this Plan.

 

(x) “Intellectual
Property Products” shall have the meaning set forth in Section 15(c) of this Plan.

 

(y) “Mature
Shares” means Ordinary shares owned by a Participant that are not subject to any pledge or security interest and
that have been either previously acquired by the Participant on the open market or meet such other requirements, if any, as the
Committee may determine are necessary in order to avoid an accounting earnings charge on account of the use of such shares to pay
the Exercise Price or satisfy a withholding obligation of the Participant.

 

    3

     

    

 

(z) “Negative
Discretion” shall mean the discretion authorized by this Plan to be applied by the Committee to eliminate or reduce
the size of a Performance Compensation Award consistent with Section 162(m) of the Code.

 

(aa) “Nonqualified
Share Option” means an Option that is not designated by the Committee as an Incentive Share Option.

 

(bb) “Option”
means an Award granted under Section 7 of this Plan.

 

(cc) “Option
Period” has the meaning given such term in Section 7(c) of this Plan.

 

(dd) “Outstanding
Company Ordinary shares” has the meaning given such term in the definition of “Change in Control.”

 

(ee) “Outstanding
Company Voting Securities” has the meaning given such term in the definition of “Change in Control.”

 

(ff) “Participant”
means an Eligible Person who has been selected by the Committee to participate in this Plan and to receive an Award pursuant to
Section 6 of this Plan.

 

(gg) “Performance
Compensation Award” shall mean any Award designated by the Committee as a Performance Compensation Award pursuant
to Section 11 of this Plan. 

 

(hh) “Performance
Criteria” shall mean the criterion or criteria that the Committee shall select for purposes of establishing the Performance
Goal(s) for a Performance Period with respect to any Performance Compensation Award under this Plan.

 

(ii) “Performance
Formula” shall mean, for a Performance Period, the one or more objective formulae applied against the relevant Performance
Goal to determine, with regard to the Performance Compensation Award of a particular Participant, whether all, some portion but
less than all, or none of the Performance Compensation Award has been earned for the Performance Period.

 

(jj) “Performance
Goals” shall mean, for a Performance Period, the one or more goals established by the Committee for the Performance
Period based upon the Performance Criteria.

 

(kk) “Performance
Period” shall mean the one or more periods of time, as the Committee may select, over which the attainment of one
or more Performance Goals will be measured for the purpose of determining a Participant’s right to, and the payment of, a
Performance Compensation Award.

 

(ll) “Permitted
Transferee” shall have the meaning set forth in Section 15(b) of this Plan.

 

(mm) “Person”
has the meaning given such term in the definition of “Change in Control.”

 

(nn) “Plan”
means this Huitao Technology Co., Ltd. 2019 Equity Incentive Plan, as amended from time to time.

 

(oo) “Retirement”
means the fulfillment of each of the following conditions: (i) the Participant is good standing with the Company as determined
by the Committee; (ii) the voluntary termination by a Participant of such Participant’s employment or service to the Company
and (B) that at the time of such voluntary termination, the sum of: (1) the Participant’s age (calculated to the nearest
month, with any resulting fraction of a year being calculated as the number of months in the year divided by 12) and (2) the Participant’s
years of employment or service with the Company (calculated to the nearest month, with any resulting fraction of a year being calculated
as the number of months in the year divided by 12) equals at least 62 (provided that, in any case, the foregoing shall only be
applicable if, at the time of Retirement, the Participant shall be at least 55 years of age and shall have been employed by or
served with the Company for no less than 5 years).

 

    4

     

    

 

(pp) “Restricted
Period” means the period of time determined by the Committee during which an Award is subject to restrictions or,
as applicable, the period of time within which performance is measured for purposes of determining whether an Award has been earned.

 

(qq) “Restricted
Share Unit” means an unfunded and unsecured promise to deliver Ordinary shares, cash, other securities or other property,
subject to certain restrictions (including, without limitation, a requirement that the Participant remain continuously employed
or provide continuous services for a specified period of time), granted under Section 9 of this Plan.

 

(rr) “Restricted
Share” means Ordinary shares, subject to certain specified restrictions (including, without limitation, a requirement
that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under
Section 9 of this Plan. 

 

(ss) “SAR
Period” has the meaning given such term in Section 8(c) of this Plan.

 

(tt) “Securities
Act” means the Securities Act of 1933, as amended, and any successor thereto. Reference in this Plan to any section
of the Securities Act shall be deemed to include any rules, regulations or other official interpretative guidance under such section,
and any amendments or successor provisions to such section, rules, regulations or guidance.

 

(uu) “Share
Appreciation Right” or “SAR” means an Award granted under Section 8 of this Plan
which meets all of the requirements of Section 1.409A-1(b)(5)(i)(B) of the Treasury Regulations.

 

(vv) “Share
Bonus Award” means an Award granted under Section 10 of this Plan.

 

(ww) “Strike
Price” means, except as otherwise provided by the Committee in the case of Substitute Awards, (i) in the case of
a SAR granted in tandem with an Option, the Exercise Price of the related Option, or (ii) in the case of a SAR granted independent
of an Option, the Fair Market Value on the Date of Grant.

 

(xx) “Subsidiary”
means, with respect to any specified Person:

 

(i) any
corporation, association or other business entity of which more than 50% of the total voting power of shares of Outstanding Company
Voting Securities (without regard to the occurrence of any contingency and after giving effect to any voting agreement or Shareholders’
agreement that effectively transfers voting power) is at the time owned or controlled, directly or indirectly, by that Person or
one or more of the other Subsidiaries of that Person (or a combination thereof); and

 

(ii) any
partnership or limited liability company (or any comparable foreign entity) (a) the sole general partner or managing member (or
functional equivalent thereof) or the managing general partner of which is such Person or Subsidiary of such Person or (b) the
only general partners or managing members (or functional equivalents thereof) of which are that Person or one or more Subsidiaries
of that Person (or any combination thereof).

 

(yy) “Substitute
Award” has the meaning given such term in Section 5(e).

 

(zz) “Treasury
Regulations” means any regulations, whether proposed, temporary or final, promulgated by the U.S. Department of Treasury
under the Code, and any successor provisions.

 

3. Effective
Date; Duration. The Plan shall be effective as of the Effective Date, but no Award shall be exercised or paid (or, in the case
of a Share Award, shall be granted unless contingent on Shareholder approval) unless and until this Plan has been approved by the
Shareholders of the Company, which approval shall be within twelve (12) months after the Effective Date. The expiration date of
this Plan, on and after which date no Awards may be granted hereunder, shall be the tenth anniversary of the Effective Date; provided, however,
that such expiration shall not affect Awards then outstanding, and the terms and conditions of this Plan shall continue to apply
to such Awards.

 

    5

     

    

 

4. Administration.

 

(a) The
Committee shall administer this Plan. To the extent required to comply with the provisions of Rule 16b-3 promulgated under the
Exchange Act (if the Board is not acting as the Committee under this Plan) or necessary to obtain the exception for performance-based
compensation under Section 162(m) of the Code, as applicable, it is intended that each member of the Committee shall, at the time
he takes any action with respect to an Award under this Plan, be an Eligible Director. However, the fact that a Committee member
shall fail to qualify as an Eligible Director shall not invalidate any Award granted by the Committee that is otherwise validly
granted under this Plan. The acts of a majority of the members present at any meeting at which a quorum is present or acts approved
in writing by a majority of the Committee shall be deemed the acts of the Committee. Whether a quorum is present shall be determined
based on the Committee’s charter as approved by the Board.

 

(b) Subject
to the provisions of this Plan and applicable law, the Committee shall have the sole and plenary authority, in addition to other
express powers and authorizations conferred on the Committee by this Plan and its charter, to: (i) designate Participants; (ii)
determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Ordinary shares to be covered
by, or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine
the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled
or exercised in cash, Ordinary shares, other securities, other Awards or other property, or canceled, forfeited, or suspended and
the method or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi) determine whether, to
what extent, and under what circumstances the delivery of cash, Ordinary shares, other securities, other Awards or other property
and other amounts payable with respect to an Award; (vii) interpret, administer, reconcile any inconsistency in, settle any controversy
regarding, correct any defect in and/or complete any omission in this Plan and any instrument or agreement relating to, or Award
granted under, this Plan; (viii) establish, amend, suspend, or waive any rules, conditions and regulations and appoint such agents
as the Committee shall deem appropriate for the proper administration of this Plan; (ix) accelerate the vesting or exercisability
of, payment for or lapse of restrictions on, Awards; and (x) make any other determination and take any other action that the Committee
deems necessary or desirable for the administration of this Plan.

 

(c) The
Committee may delegate to one or more officers of the Company or any Affiliate the authority to act on behalf of the Committee
with respect to any matter, right, obligation, or election that is the responsibility of or that is allocated to the Committee
herein, and that may be so delegated as a matter of law, except for grants of Awards to persons (i) subject to Section 16 of the
Exchange Act or (ii) who are, or who are reasonably expected to be, “covered employees” for purposes of Section 162(m)
of the Code.

 

(d) Unless
otherwise expressly provided in this Plan, all designations, determinations, interpretations, and other decisions under or with
respect to this Plan or any Award or any documents evidencing Awards granted pursuant to this Plan shall be within the sole discretion
of the Committee, may be made at any time and shall be final, conclusive and binding upon all persons or entities, including, without
limitation, the Company, any Affiliate, any Participant, any holder or beneficiary of any Award, and any Shareholder of the Company. 

 

(e) No
member of the Board, the Committee, delegate of the Committee or any employee, advisor or agent of the Company or the Board or
the Committee (each such person, an “Indemnifiable Person”) shall be liable for any action taken or omitted
to be taken or any determination made in good faith with respect to this Plan or any Award hereunder. Each Indemnifiable Person
shall be indemnified and held harmless by the Company against and from (and the Company shall pay or reimburse on demand for) any
loss, cost, liability, or expense (including attorneys’ fees) that may be imposed upon or incurred by such Indemnifiable
Person in connection with or resulting from any action, suit or proceeding to which such Indemnifiable Person may be a party or
in which such Indemnifiable Person may be involved by reason of any action taken or omitted to be taken under this Plan or any
Award agreement and against and from any and all amounts paid by such Indemnifiable Person with the Company’s approval, in
settlement thereof, or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit or proceeding
against such Indemnifiable Person, provided, that the Company shall have the right, at its own expense, to assume and
defend any such action, suit or proceeding and once the Company gives notice of its intent to assume the defense, the Company shall
have sole control over such defense with counsel of the Company’s choice. The foregoing right of indemnification shall not
be available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject
to further appeal) binding upon such Indemnifiable Person determines that the acts or omissions of such Indemnifiable Person giving
rise to the indemnification claim resulted from such Indemnifiable Person’s bad faith, fraud or willful criminal act or omission
or that such right of indemnification is otherwise prohibited by law or by the Company’s Certificate of Incorporation or
Bylaws. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such Indemnifiable
Persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or
any other power that the Company may have to indemnify such Indemnifiable Persons or hold them harmless.

 

    6

     

    

 

(f) Notwithstanding
anything to the contrary contained in this Plan, the Board may, in its sole discretion, at any time and from time to time, grant
Awards and administer this Plan with respect to such Awards. In any such case, the Board shall have all the authority granted to
the Committee under this Plan.

 

5. Grant
of Awards; Shares Subject to this Plan; Limitations.

 

(a) The
Committee may, from time to time, grant Options, Share Appreciation Rights, Restricted Share, Restricted Share Units, Share Bonus
Awards and/or Performance Compensation Awards to one or more Eligible Persons.

 

(b) Subject
to Section 3, Section 11 and Section 12 of this Plan, the Committee is authorized to deliver under this Plan an aggregate of One
Million One Hundred and Thirty Six Thousand (1,136,000) Ordinary Shares. Each Ordinary share subject to an Option or a Share Appreciation
Right will reduce the number of Ordinary shares available for issuance by one share, and each Ordinary share underlying an Award
of Restricted Share, Restricted Share Units, Share Bonus Awards and Performance Compensation Awards will reduce the number of Ordinary
shares available for issuance by one shares.

 

(c) Ordinary
shares underlying Awards under this Plan that are forfeited, cancelled, expire unexercised, or are settled in cash shall be available
again for Awards under this Plan at the same ratio at which they were previously granted. Notwithstanding the foregoing, the following
Ordinary shares shall not be available again for Awards under the Plan: (i) shares tendered or held back upon the exercise of an
Option or settlement of an Award to cover the Exercise Price of an Award; (ii) shares that are used or withheld to satisfy tax
obligations of the Participant; and (iii) shares subject to a Share Appreciation Right that are not issued in connection with the
Share settlement of the SAR upon exercise thereof.

 

(d) Ordinary
shares delivered by the Company in settlement of Awards may be authorized and unissued shares, shares held in the treasury of the
Company, shares purchased on the open market or by private purchase, or a combination of the foregoing.

 

(e) Subject
to compliance with Section 1.409A-3(f) of the Treasury Regulations, Awards may, in the sole discretion of the Committee, be granted
under this Plan in assumption of, or in substitution for, outstanding awards previously granted by an entity acquired by the Company
or with which the Company combines (“Substitute Awards”). The number of Ordinary shares underlying any
Substitute Awards shall be counted against the aggregate number of Ordinary shares available for Awards under this Plan.

 

6. Eligibility.
Participation shall be limited to Eligible Persons who have entered into an Award agreement or who have received written notification
from the Committee, or from a person designated by the Committee, that they have been selected to participate in this Plan.

 

    7

     

    

 

7. Options.

 

(a) Generally.
Each Option granted under this Plan shall be evidenced by an Award agreement (whether in paper or electronic medium (including
email or the posting on a web site maintained by the Company or a third party under contract with the Company)). Each Option so
granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent with this
Plan as may be reflected in the applicable Award agreement. All Options granted under this Plan shall be Nonqualified Share Options
unless the applicable Award agreement expressly states that the Option is intended to be an Incentive Share Option. Notwithstanding
any designation of an Option, to the extent that the aggregate Fair Market Value of Ordinary shares with respect to which Options
designated as Incentive Share Options are exercisable for the first time by any Participant during any calendar year (under all
plans of the Company or any Subsidiary) exceeds $100,000, such excess Options shall be treated as Nonqualified Share Options. Incentive
Share Options shall be granted only to Eligible Persons who are employees of the Company and its Affiliates, and no Incentive Share
Option shall be granted to any Eligible Person who is ineligible to receive an Incentive Share Option under the Code. No Option
shall be treated as an Incentive Share Option unless this Plan has been approved by the Shareholders of the Company in a manner
intended to comply with the Shareholder approval requirements of Section 422(b)(1) of the Code, provided that any Option intended
to be an Incentive Share Option shall not fail to be effective solely on account of a failure to obtain such approval, but rather
such Option shall be treated as a Nonqualified Share Option unless and until such approval is obtained. In the case of an Incentive
Share Option, the terms and conditions of such grant shall be subject to and comply with such rules as may be prescribed by Section
422 of the Code. If for any reason an Option intended to be an Incentive Share Option (or any portion thereof) shall not qualify
as an Incentive Share Option, then, to the extent of such nonqualification, such Option or portion thereof shall be regarded as
a Nonqualified Share Option appropriately granted under this Plan.

 

(b) Exercise
Price. The exercise price (“Exercise Price”) per Ordinary share for each Option shall not be
less than 100% of the Fair Market Value of such share determined as of the Date of Grant; provided, however, that in
the case of an Incentive Share Option granted to an employee who, at the time of the grant of such Option, owns shares representing
more than 10% of the voting power of all classes of shares of the Company or any Affiliate, the Exercise Price per share shall
not be less than 110% of the Fair Market Value per share on the Date of Grant; and, provided further, that notwithstanding
any provision herein to the contrary, the Exercise Price shall not be less than the par value per Ordinary share.

 

(c) Vesting
and Expiration. Options shall vest and become exercisable in such manner and on such date or dates determined by the Committee
and as set forth in the applicable Award agreement, and shall expire after such period, not to exceed ten (10) years from the Date
of Grant, as may be determined by the Committee (the “Option Period”); provided, however,
that the Option Period shall not exceed five (5) years from the Date of Grant in the case of an Incentive Share Option granted
to a Participant who on the Date of Grant owns shares representing more than 10% of the voting power of all classes of shares of
the Company or any Affiliate; and, provided, further, that notwithstanding any vesting dates
set by the Committee, the Committee may, in its sole discretion, accelerate the exercisability of any Option, which acceleration
shall not affect the terms and conditions of such Option other than with respect to exercisability. Unless otherwise provided by
the Committee in an Award agreement:

 

(i) an
Option shall vest and become exercisable with respect to 100% of the Ordinary shares subject to such Option on the third (3rd)
anniversary of the Date of Grant;

 

(ii) the
unvested portion of an Option shall expire upon termination of employment or service of the Participant granted the Option, and
the vested portion of such Option shall remain exercisable for:

 

(A) one
year following termination of employment or service by reason of such Participant’s death or Disability (with the determination
of Disability to be made by the Committee on a case by case basis), but not later than the expiration of the Option Period;

 

(B) for
directors, officers and employees of the Company only, for the remainder of the Option Period following termination of employment
or service by reason of such Participant’s Retirement (it being understood that any Incentive Share Option held by the Participant
shall be treated as a Nonqualified Share Option if exercise is not undertaken within 90 days of the date of Retirement);

 

(C) 90
calendar days following termination of employment or service for any reason other than such Participant’s death, Disability
or Retirement, and other than such Participant’s termination of employment or service for Cause, but not later than the expiration
of the Option Period; and

 

(iii) both
the unvested and the vested portion of an Option shall immediately expire upon the termination of the Participant’s employment
or service by the Company for Cause.

 

    8

     

    

 

(d) Method
of Exercise and Form of Payment. No Ordinary shares shall be delivered pursuant to any exercise of an Option until payment
in full of the Exercise Price therefor is received by the Company and the Participant has paid to the Company an amount equal to
any federal, state, local and non-U.S. income and employment taxes required to be withheld. Options that have become exercisable
may be exercised by delivery of written or electronic notice of exercise to the Company in accordance with the terms of the Award
agreement accompanied by payment of the Exercise Price. The Exercise Price shall be payable (i) in cash, check (subject to collection),
cash equivalent and/or vested Ordinary shares valued at the Closing Price at the time the Option is exercised (including, pursuant
to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of Ordinary shares in lieu
of actual delivery of such shares to the Company); provided, however, that such Ordinary shares are not
subject to any pledge or other security interest and are Mature Shares and; (ii) by such other method as the Committee may permit
in accordance with applicable law, in its sole discretion, including without limitation: (A) in other property having a fair market
value (as determined by the Committee in its discretion) on the date of exercise equal to the Exercise Price or (B) if there is
a public market for the Ordinary shares at such time, by means of a broker-assisted “cashless exercise” pursuant to
which the Company is delivered a copy of irrevocable instructions to a Sharebroker to sell the Ordinary shares otherwise deliverable
upon the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise Price or (C) by a “net
exercise” method whereby the Company withholds from the delivery of the Ordinary shares for which the Option was exercised
that number of Ordinary shares having a Closing Price equal to the aggregate Exercise Price for the Ordinary shares for which the
Option was exercised. Any fractional Ordinary shares shall be settled in cash. 

 

(e) Notification
upon Disqualifying Disposition of an Incentive Share Option. Each Participant awarded an Incentive Share Option under this
Plan shall notify the Company in writing immediately after the date he makes a disqualifying disposition of any Ordinary shares
acquired pursuant to the exercise of such Incentive Share Option. A disqualifying disposition is any disposition (including, without
limitation, any sale) of such Ordinary shares before the later of (A) two years after the Date of Grant of the Incentive Share
Option or (B) one year after the date of exercise of the Incentive Share Option. The Company may, if determined by the Committee
and in accordance with procedures established by the Committee, retain possession of any Ordinary shares acquired pursuant to the
exercise of an Incentive Share Option as agent for the applicable Participant until the end of the period described in the preceding
sentence.

 

(f) Compliance
With Laws, etc. Notwithstanding the foregoing, in no event shall a Participant be permitted to exercise an Option in a
manner that the Committee determines would violate the Sarbanes-Oxley Act of 2002, if applicable, or any other applicable law or
the applicable rules and regulations of the Securities and Exchange Commission or the applicable rules and regulations of any securities
exchange or inter-dealer quotation system on which the securities of the Company are listed or traded.

 

8. Share
Appreciation Rights.

 

(a) Generally.
Each SAR granted under this Plan shall be evidenced by an Award agreement (whether in paper or electronic medium (including email
or the posting on a web site maintained by the Company or a third party under contract with the Company)). Each SAR so granted
shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent with this Plan as
may be reflected in the applicable Award agreement. Any Option granted under this Plan may include tandem SARs. The Committee also
may award SARs to Eligible Persons independent of any Option.

 

    9

     

    

 

(b) Vesting
and Expiration. A SAR granted in connection with an Option shall become exercisable and shall expire according to the same
vesting schedule and expiration provisions as the corresponding Option. A SAR granted independent of an Option shall vest and become
exercisable and shall expire in such manner and on such date or dates determined by the Committee and shall expire after such period,
not to exceed ten years, as may be determined by the Committee (the “SAR Period”); provided,
however, that notwithstanding any vesting dates set by the Committee, the Committee may, in its sole discretion, accelerate
the exercisability of any SAR, which acceleration shall not affect the terms and conditions of such SAR other than with respect
to exercisability. Unless otherwise provided by the Committee in an Award agreement:

 

(i) a
SAR shall vest and become exercisable with respect to 100% of the Ordinary shares subject to such SAR on the third anniversary
of the Date of Grant;

 

(ii) the
unvested portion of a SAR shall expire upon termination of employment or service of the Participant granted the SAR, and the vested
portion of such SAR shall remain exercisable for:

 

(A) one
year following termination of employment or service by reason of such Participant’s death or Disability (with the determination
of Disability to be made by the Committee on a case by case basis), but not later than the expiration of the SAR Period; 

 

(B) for
directors, officers and employees of the Company only, for the remainder of the SAR Period following termination of employment
or service by reason of such Participant’s Retirement;

 

(C) 90
calendar days following termination of employment or service for any reason other than such Participant’s death, Disability
or Retirement, and other than such Participant’s termination of employment or service for Cause, but not later than the expiration
of the SAR Period; and

 

(iii) both
the unvested and the vested portion of a SAR shall expire immediately upon the termination of the Participant’s employment
or service by the Company for Cause.

 

(c) Method
of Exercise. SARs that have become exercisable may be exercised by delivery of written or electronic notice of exercise
to the Company in accordance with the terms of the Award, specifying the number of SARs to be exercised and the date on which such
SARs were awarded. Notwithstanding the foregoing, if on the last day of the Option Period (or in the case of a SAR independent
of an option, the SAR Period), the Closing Price exceeds the Strike Price, the Participant has not exercised the SAR or the corresponding
Option (if applicable), and neither the SAR nor the corresponding Option (if applicable) has expired, such SAR shall be deemed
to have been exercised by the Participant on such last day and the Company shall make the appropriate payment therefor.

 

(d) Payment.
Upon the exercise of a SAR, the Company shall pay to the Participant an amount equal to the number of shares subject to the SAR
that are being exercised multiplied by the excess, if any, of the Closing Price of one Ordinary share on the exercise date over
the Strike Price, less an amount equal to any federal, state, local and non-U.S. income and employment taxes required to be withheld.
The Company shall pay such amount in cash, in Ordinary shares valued at fair market value, or any combination thereof, as determined
by the Committee. Any fractional Ordinary share shall be settled in cash.

 

9. Restricted
Share and Restricted Share Units.

 

(a) Generally.
Each grant of Restricted Share and Restricted Share Units shall be evidenced by an Award agreement (whether in paper or electronic
medium (including email or the posting on a web site maintained by the Company or a third party under contract with the Company)).
Each such grant shall be subject to the conditions set forth in this Section 9, and to such other conditions not inconsistent with
this Plan as may be reflected in the applicable Award agreement.

 

(b) Restricted
Accounts; Escrow or Similar Arrangement. Upon the grant of Restricted Share, a book entry in a restricted account shall
be established in the Participant’s name at the Company’s transfer agent and, if the Committee determines that the
Restricted Share shall be held by the Company or in escrow rather than held in such restricted account pending the release of the
applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (i) an escrow
agreement satisfactory to the Committee, if applicable, and (ii) the appropriate share power (endorsed in blank) with respect to
the Restricted Share covered by such agreement. If a Participant shall fail to execute an agreement evidencing an Award of Restricted
Share and, if applicable, an escrow agreement and blank share power within the amount of time specified by the Committee, the Award
shall be null and void ab initio. Subject to the restrictions set forth in this Section 9 and the applicable Award
agreement, the Participant generally shall have the rights and privileges of a Shareholder as to such Restricted Share, including
without limitation the right to vote such Restricted Share and the right to receive dividends, if applicable. To the extent shares
of Restricted Share are forfeited, any share certificates issued to the Participant evidencing such shares shall be returned to
the Company, and all rights of the Participant to such shares and as a Shareholder with respect thereto shall terminate without
further obligation on the part of the Company. 

 

    10

     

    

 

(c) Vesting;
Acceleration of Lapse of Restrictions. Unless otherwise provided by the Committee in an Award agreement: (i) the Restricted
Period shall lapse with respect to 100% of the Restricted Share and Restricted Share Units on the third (3rd) anniversary
of the Date of Grant; and (ii) the unvested portion of Restricted Share and Restricted Share Units shall terminate and be forfeited
upon termination of employment or service of the Participant granted the applicable Award.

 

(d) Delivery
of Restricted Share and Settlement of Restricted Share Units. (i) Upon the expiration of the Restricted Period with respect
to any shares of Restricted Share, the restrictions set forth in the applicable certificate shall be of no further force or effect
with respect to such shares, except as set forth in the applicable Award agreement. If an escrow arrangement is used, upon such
expiration, the Company shall deliver to the Participant, or his beneficiary, without charge, the share certificate evidencing
the shares of Restricted Share that have not then been forfeited and with respect to which the Restricted Period has expired (rounded
down to the nearest full share). Dividends, if any, that may have been withheld by the Committee and attributable to
any particular share of Restricted Share shall be distributed to the Participant in cash or, at the sole discretion of the Committee,
in Ordinary shares having a Closing Price equal to the amount of such dividends, upon the release of restrictions on such share
and, if such share is forfeited, the Participant shall have no right to such dividends (except as otherwise set forth by the Committee
in the applicable Award agreement).

 

(ii) Unless
otherwise provided by the Committee in an Award agreement, upon the expiration of the Restricted Period with respect to any outstanding
Restricted Share Units, the Company shall deliver to the Participant, or his beneficiary, without charge, one Ordinary share for
each such outstanding Restricted Share Unit; provided, however, that the Committee may, in its sole
discretion and subject to the requirements of Section 409A of the Code, elect to (i) pay cash or part cash and part Ordinary share
in lieu of delivering only Ordinary shares in respect of such Restricted Share Units or (ii) defer the delivery of Ordinary shares
(or cash or part Ordinary shares and part cash, as the case may be) beyond the expiration of the Restricted Period if such delivery
would result in a violation of applicable law until such time as is no longer the case. If a cash payment is made in lieu of delivering
Ordinary shares, the amount of such payment shall be equal to the Closing Price of the Ordinary shares as of the date on which
the Restricted Period lapsed with respect to such Restricted Share Units, less an amount equal to any federal, state, local and
non-U.S. income and employment taxes required to be withheld.

 

10. Share
Bonus Awards. The Committee may issue unrestricted Ordinary shares, or other Awards denominated in Ordinary shares, under this
Plan to Eligible Persons, either alone or in tandem with other awards, in such amounts as the Committee shall from time to time
in its sole discretion determine. Each Share Bonus Award granted under this Plan shall be evidenced by an Award agreement (whether
in paper or electronic medium (including email or the posting on a web site maintained by the Company or a third party under contract
with the Company)). Each Share Bonus Award so granted shall be subject to such conditions not inconsistent with this Plan as may
be reflected in the applicable Award agreement. 

 

11. Performance
Compensation Awards.

 

(a) Generally.
The Committee shall have the authority, at the time of grant of any Award described in Sections 7 through 10 of this Plan, to designate
such Award as a Performance Compensation Award intended to qualify as “performance-based compensation” under Section
162(m) of the Code. The Committee shall have the authority to make an award of a cash bonus to any Participant and designate such
Award as a Performance Compensation Award intended to qualify as “performance-based compensation” under Section 162(m)
of the Code.

 

(b) Discretion
of Committee with Respect to Performance Compensation Awards. With regard to a particular Performance Period, the Committee
shall have sole discretion to select the length of such Performance Period, the type(s) of Performance Compensation Awards to be
issued, the Performance Criteria that will be used to establish the Performance Goal(s), the kind(s) and/or level(s) of the Performance
Goals(s) that is (are) to apply and the Performance Formula. Within the first 90 calendar days of a Performance Period (or, if
longer or shorter, within the maximum period allowed under Section 162(m) of the Code, if applicable), the Committee shall, with
regard to the Performance Compensation Awards to be issued for such Performance Period, exercise its discretion with respect to
each of the matters enumerated in the immediately preceding sentence and record the same in writing.

 

    11

     

    

 

(c) Performance
Criteria. The Performance Criteria that will be used to establish the Performance Goal(s) shall be based on the attainment
of specific levels of performance of the Company and/or one or more Affiliates, divisions or operational units, or any combination
of the foregoing, as determined by the Committee. Any one or more of the Performance Criteria adopted by the Committee may be used
on an absolute or relative basis to measure the performance of the Company and/or one or more Affiliates as a whole or any business
unit(s) of the Company and/or one or more Affiliates or any combination thereof, as the Committee may deem appropriate, or any
of the above Performance Criteria may be compared to the performance of a selected group of comparison companies, or a published
or special index that the Committee, in its sole discretion, deems appropriate, or as compared to various Share market indices.
The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of Performance Goals
pursuant to the Performance Criteria specified in this paragraph. To the extent required under Section 162(m) of the Code, the
Committee shall, within the first 90 calendar days of a Performance Period (or, if longer or shorter, within the maximum period
allowed under Section 162(m) of the Code), define in an objective fashion the manner of calculating the Performance Criteria it
selects to use for such Performance Period and thereafter promptly communicate such Performance Criteria to the Participant.

 

(d) Modification
of Performance Goal(s). In the event that applicable tax and/or securities laws change to permit Committee discretion to
alter the governing Performance Criteria without obtaining Shareholder approval of such alterations, the Committee shall have sole
discretion to make such alterations without obtaining Shareholder approval. The Committee is authorized at any time during the
first 90 calendar days of a Performance Period (or, if longer or shorter, within the maximum period allowed under Section 162(m)
of the Code, if applicable), or at any time thereafter to the extent the exercise of such authority at such time would not cause
the Performance Compensation Awards granted to any Participant for such Performance Period to fail to qualify as “performance-based
compensation” under Section 162(m) of the Code, in its sole discretion, to adjust or modify the calculation of a Performance
Goal for such Performance Period, based on and in order to appropriately reflect the following events: (i) asset write-downs; (ii)
litigation or claim judgments or settlements; (iii) the effect of changes in tax laws, accounting principles, or other laws or
regulatory rules affecting reported results; (iv) any reorganization and restructuring programs; (v) extraordinary nonrecurring
items as described in Accounting Principles Board Opinion No. 30 (or any successor pronouncement thereto) and/or in management’s
discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to Shareholders
for the applicable year; (vi) acquisitions or divestitures; (vii) any other specific unusual or nonrecurring events, or objectively
determinable category thereof; (viii) foreign exchange gains and losses; and (ix) a change in the Company’s fiscal year. 

 

(e) Payment
of Performance Compensation Awards.

 

(i) Condition
to Receipt of Payment. Unless otherwise provided in the applicable Award agreement, a Participant must be employed by the
Company on the last day of a Performance Period to be eligible for payment in respect of a Performance Compensation Award for such
Performance Period.

 

(ii) Limitation.
A Participant shall be eligible to receive payment in respect of a Performance Compensation Award only to the extent that: (A)
the Performance Goals for such period are achieved; and (B) all or some of the portion of such Participant’s Performance
Compensation Award has been earned for the Performance Period based on the application of the Performance Formula to such achieved
Performance Goals.

 

(iii) Certification.
Following the completion of a Performance Period, the Committee shall review and certify in writing whether, and to what extent,
the Performance Goals for the Performance Period have been achieved and, if so, calculate and certify in writing that amount of
the Performance Compensation Awards earned for the period based upon the Performance Formula. The Committee shall then determine
the amount of each Participant’s Performance Compensation Award actually payable for the Performance Period and, in so doing,
may apply Negative Discretion.

 

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(iv) Use
of Negative Discretion. In determining the actual amount of an individual Participant’s Performance Compensation
Award for a Performance Period, the Committee may reduce or eliminate the amount of the Performance Compensation Award earned under
the Performance Formula in the Performance Period through the use of Negative Discretion if, in its sole judgment, such reduction
or elimination is appropriate. The Committee shall not have the discretion, except as is otherwise provided in this Plan, to (A)
grant or provide payment in respect of Performance Compensation Awards for a Performance Period if the Performance Goals for such
Performance Period have not been attained; or (B) increase a Performance Compensation Award above the applicable limitations set
forth in Section 5 of this Plan.

 

(f) Timing
of Award Payments. Performance Compensation Awards granted for a Performance Period shall be paid to Participants as soon
as administratively practicable following completion of the certifications required by this Section 11, but in no event later than
two-and-one-half months following the end of the fiscal year during which the Performance Period is completed in order to comply
with the short-term deferral rules under Section 1.409A-1(b)(4) of the Treasury Regulations. Notwithstanding the foregoing, payment
of a Performance Compensation Award may be delayed, as permitted by Section 1.409A-2(b)(7)(i) of the Treasury Regulations, to the
extent that the Company reasonably anticipates that if such payment were made as scheduled, the Company’s tax deduction with
respect to such payment would not be permitted due to the application of Section 162(m) of the Code.

 

12. Changes
in Capital Structure and Similar Events. In the event of (a) any dividend or other distribution (whether in the form of cash,
Ordinary shares, other securities or other property), recapitalization, Share split, reverse Share split, reorganization, merger,
amalgamation, consolidation, split-up, split-off, combination, repurchase or exchange of Ordinary shares or other securities of
the Company, issuance of warrants or other rights to acquire Ordinary shares or other securities of the Company, or other similar
corporate transaction or event (including, without limitation, a Change in Control) that affects the Ordinary shares, or (b) unusual
or nonrecurring events (including, without limitation, a Change in Control) affecting the Company, any Affiliate, or the financial
statements of the Company or any Affiliate, or changes in applicable rules, rulings, regulations or other requirements of any governmental
body or securities exchange or inter-dealer quotation system, accounting principles or law, such that in either case an adjustment
is determined by the Committee in its sole discretion to be necessary or appropriate, then the Committee shall make any such adjustments
that are equitable, including without limitation any or all of the following:

 

(i) adjusting
any or all of (A) the number of Ordinary shares or other securities of the Company (or number and kind of other securities or other
property) that may be delivered in respect of Awards or with respect to which Awards may be granted under this Plan (including,
without limitation, adjusting any or all of the limitations under Section 5 of this Plan) and (B) the terms of any outstanding
Award, including, without limitation, (1) the number of Ordinary shares or other securities of the Company (or number and kind
of other securities or other property) subject to outstanding Awards or to which outstanding Awards relate, (2) the Exercise Price
or Strike Price with respect to any Award or (3) any applicable performance measures (including, without limitation, Performance
Criteria and Performance Goals);

 

(ii) providing
for a substitution or assumption of Awards, accelerating the exercisability of, lapse of restrictions on, or termination of, Awards
or providing for a period of time for exercise prior to the occurrence of such event; and

 

(iii) subject
to the requirements of Section 409A of the Code, canceling any one or more outstanding Awards and causing to be paid to the holders
thereof, in cash, Ordinary shares, other securities or other property, or any combination thereof, the value of such Awards, if
any, as determined by the Committee (which if applicable may be based upon the price per Ordinary share received or to be received
by other Shareholders of the Company in such event), including without limitation, in the case of an outstanding Option or SAR,
a cash payment in an amount equal to the excess, if any, of the fair market value (as of a date specified by the Committee) of
the Ordinary shares subject to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option or SAR, respectively
(it being understood that, in such event, any Option or SAR having a per share Exercise Price or Strike Price equal to, or in excess
of, the fair market value of a Ordinary share subject thereto may be canceled and terminated without any payment or consideration
therefor);

 

provided, however,
that in the case of any “equity restructuring” (within the meaning of the Financial Accounting Standards Board Statement
of Financial Accounting Standards No. 123 (revised 2004) or ASC Topic 718, or any successor thereto), the Committee shall make
an equitable or proportionate adjustment to outstanding Awards to reflect such equity restructuring. Any adjustment in Incentive
Share Options under this Section 12 (other than any cancellation of Incentive Share Options) shall be made only to the extent not
constituting a “modification” within the meaning of Section 424(h)(3) of the Code, and any adjustments under this Section
12 shall be made in a manner that does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act.
The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive
and binding for all purposes.

 

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13. Effect
of Change in Control. Except to the extent otherwise provided in an Award agreement or as determined by the Committee in its
sole discretion, in the event of a Change in Control, notwithstanding any provision of this Plan to the contrary, with respect
to all or any portion of a particular outstanding Award or Awards:

 

(a) all
of the then outstanding Options and SARs may immediately vest and may become immediately exercisable as of a time prior to the
Change in Control; 

 

(b) the
Restricted Period may expire as of a time prior to the Change in Control (including without limitation a waiver of any applicable
Performance Goals);

 

(c) Performance
Periods in effect on the date the Change in Control occurs may end on such date, and the Committee (i) shall determine the extent
to which Performance Goals with respect to each such Performance Period have been met based upon such audited or unaudited financial
information or other information then available as it deems relevant and (ii) may cause the Participant to receive partial or full
payment of Awards for each such Performance Period based upon the Committee’s determination of the degree of attainment of
the Performance Goals, or assuming that the applicable “target” levels of performance have been attained or on such
other basis determined by the Committee.

 

To the extent practicable,
any actions taken by the Committee under the immediately preceding clauses (a) through (c) shall occur in a manner and at a time
which allows affected Participants the ability to participate in the Change in Control transactions with respect to the Ordinary
shares subject to their Awards. In the event no action is taken by the Committee to allow for the changes set forth in immediately
preceding clauses (a) through (c), then no changes to the Award shall be effected.

 

14. Amendments
and Termination.

 

(a)  Amendment
and Termination of this Plan. The Board may amend, alter, suspend, discontinue, or terminate this Plan or any portion thereof
at any time; provided, that (i) no amendment to the definition of Eligible Employee in Section 2, Section 5(i), Section
11(c) or Section 14(b) (to the extent required by the proviso in such Section 14(b)) shall be made without Shareholder approval
and (ii) no such amendment, alteration, suspension, discontinuation or termination shall be made without Shareholder approval if
such approval is necessary to comply with any tax or regulatory requirement applicable to this Plan (including, without limitation,
as necessary to comply with any rules or requirements of any securities exchange or inter-dealer quotation system on which the
Ordinary shares may be listed or quoted or to prevent the Company from being denied a tax deduction under Section 162(m) of the
Code); and, provided, further, that any such amendment, alteration, suspension, discontinuance
or termination that would materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award
theretofore granted shall not to that extent be effective without the prior written consent of the affected Participant, holder
or beneficiary.

 

(b) Amendment
of Award Agreements. The Committee may, to the extent consistent with the terms of any applicable Award agreement, waive
any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any Award theretofore
granted or the associated Award agreement, prospectively or retroactively; provided, however that any such
waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely affect
the rights of any Participant with respect to any Award theretofore granted shall not to that extent be effective without the consent
of the affected Participant; and, provided, further, that without Shareholder approval, except
as otherwise permitted under Section 12 of this Plan, (i) no amendment or modification may reduce the Exercise Price of any Option
or the Strike Price of any SAR, (ii) the Committee may not cancel any outstanding Option or SAR and replace it with a new Option
or SAR, another Award or cash or take any action that would have the effect of treating such Award as a new Award for tax or accounting
purposes and (iii) the Committee may not take any other action that is considered a “repricing” for purposes of the
Shareholder approval rules of the applicable securities exchange or inter-dealer quotation system on which the Ordinary shares
are listed or quoted. 

 

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15. General.

 

(a)  Award
Agreements. Each Award under this Plan shall be evidenced by an Award agreement, which shall be delivered to the Participant
(whether in paper or electronic medium (including email or the posting on a web site maintained by the Company or a third party
under contract with the Company)) and shall specify the terms and conditions of the Award and any rules applicable thereto, including
without limitation, the effect on such Award of the death, Disability or termination of employment or service of a Participant,
or of such other events as may be determined by the Committee. The Company’s failure to specify any term of any Award in
any particular Award agreement shall not invalidate such term, provided such terms was duly adopted by the Board or the Committee.

 

(b) Nontransferability;
Trading Restrictions.

 

(i) Each
Award shall be exercisable only by a Participant during the Participant’s lifetime, or, if permissible under applicable law,
by the Participant’s legal guardian or representative. No Award may be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by a Participant other than by will or by the laws of descent and distribution and any such purported
assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or
an Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment,
sale, transfer or encumbrance.

 

(ii) Notwithstanding
the foregoing, the Committee may, in its sole discretion, permit Awards (other than Incentive Share Options) to be transferred
by a Participant, with or without consideration, subject to such rules as the Committee may adopt consistent with any applicable
Award agreement to preserve the purposes of this Plan, to: (A) any person who is a “family member” of the Participant,
as such term is used in the instructions to Form S-8 under the Securities Act (collectively, the “Immediate Family
Members”); (B) a trust solely for the benefit of the Participant and his or her Immediate Family Members; or (C)
a partnership or limited liability company whose only partners or Shareholders are the Participant and his or her Immediate Family
Members; or (D) any other transferee as may be approved either (I) by the Board or the Committee in its sole discretion, or (II)
as provided in the applicable Award agreement (each transferee described in clauses (A), (B) (C) and (D) above is hereinafter referred
to as a “Permitted Transferee”); provided, that the Participant gives the Committee advance
written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing
that such a transfer would comply with the requirements of this Plan.

 

(iii) The
terms of any Award transferred in accordance with the immediately preceding sentence shall apply to the Permitted Transferee and
any reference in this Plan, or in any applicable Award agreement, to a Participant shall be deemed to refer to the Permitted Transferee,
except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of descent and
distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall be in effect
a registration statement on an appropriate form covering the Ordinary shares to be acquired pursuant to the exercise of such Option
if the Committee determines, consistent with any applicable Award agreement, that such a registration statement is necessary or
appropriate; (C) the Committee or the Company shall not be required to provide any notice to a Permitted Transferee, whether or
not such notice is or would otherwise have been required to be given to the Participant under this Plan or otherwise; and (D) the
consequences of the termination of the Participant’s employment by, or services to, the Company or an Affiliate under the
terms of this Plan and the applicable Award agreement shall continue to be applied with respect to the Participant, including,
without limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified
in this Plan and the applicable Award agreement.

 

(iv) The
Committee shall have the right, either on an Award-by-Award basis or as a matter of policy for all Awards or one or more classes
of Awards, to condition the delivery of vested Ordinary shares received in connection with such Award on the Participant’s
agreement to such restrictions as the Committee may determine. 

 

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(c) Tax
Withholding.

 

(i) A
Participant shall be required to pay to the Company or any Affiliate, or the Company or any Affiliate shall have the right and
is hereby authorized to withhold, from any cash, Ordinary shares, other securities or other property deliverable under any Award
or from any compensation or other amounts owing to a Participant, the amount (in cash, Ordinary shares, other securities or other
property) of any required withholding taxes in respect of an Award, its exercise, or any payment or transfer under an Award or
under this Plan and to take such other action as may be necessary in the opinion of the Committee or the Company to satisfy all
obligations for the payment of such withholding and taxes.

 

(ii) Without
limiting the generality of clause (i) above, the Committee may, in its sole discretion, permit a Participant to satisfy, in whole
or in part, the foregoing withholding liability by (A) the delivery of Ordinary shares (which are not subject to any pledge or
other security interest and are Mature Shares) owned by the Participant having a fair market value equal to such withholding liability
or (B) having the Company withhold from the number of Ordinary shares otherwise issuable or deliverable pursuant to the exercise
or settlement of the Award a number of shares with a fair market value equal to such withholding liability (but no more than the
minimum required statutory withholding liability).

 

(d) No
Claim to Awards; No Rights to Continued Employment; Waiver. No employee of the Company or an Affiliate, or other person,
shall have any claim or right to be granted an Award under this Plan or, having been selected for the grant of an Award, to be
selected for a grant of any other Award. There is no obligation for uniformity of treatment of Participants or holders or beneficiaries
of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations with respect thereto
need not be the same with respect to each Participant and may be made selectively among Participants, whether or not such Participants
are similarly situated. Neither this Plan nor any action taken hereunder shall be construed as giving any Participant any right
to be retained in the employ or service of the Company or an Affiliate, nor shall it be construed as giving any Participant any
rights to continued service on the Board. The Company or any of its Affiliates may at any time dismiss a Participant from employment
or discontinue any consulting relationship, free from any liability or any claim under this Plan, unless otherwise expressly provided
in this Plan or any Award agreement. By accepting an Award under this Plan, a Participant shall thereby be deemed to have waived
any claim to continued exercise or vesting of an Award or to damages or severance entitlement related to non-continuation of the
Award beyond the period provided under this Plan or any Award agreement, notwithstanding any provision to the contrary in any written
employment contract or other agreement between the Company and its Affiliates and the Participant, whether any such agreement is
executed before, on or after the Date of Grant.

 

(e) International
Participants. With respect to Participants who reside or work outside of the United States of America and who are not (and
who are not expected to be) “covered employees” within the meaning of Section 162(m) of the Code, the Committee may
in its sole discretion amend the terms of this Plan or outstanding Awards (or establish a sub-plan) with respect to such Participants
in order to conform such terms with the requirements of local law or to obtain more favorable tax or other treatment for a Participant,
the Company or its Affiliates. 

 

(f) Designation
and Change of Beneficiary. Each Participant may file with the Committee a written designation of one or more persons as
the beneficiary(ies) who shall be entitled to receive the amounts payable with respect to an Award, if any, due under this Plan
upon his or her death. A Participant may, from time to time, revoke or change his or her beneficiary designation without the consent
of any prior beneficiary by filing a new designation with the Committee. The last such designation filed with the Committee shall
be controlling; provided, however, that no designation, or change or revocation thereof, shall be
effective unless received by the Committee prior to the Participant’s death, and in no event shall it be effective as of
a date prior to such receipt. If no beneficiary designation is filed by a Participant, the beneficiary shall be deemed to be his
or her spouse or, if the Participant is unmarried at the time of death, his or her estate. Upon the occurrence of a Participant’s
divorce (as evidenced by a final order or decree of divorce), any spousal designation previously given by such Participant shall
automatically terminate.

 

(g) Termination
of Employment/Service. Unless determined otherwise by the Committee at any point following such event: (i) neither a temporary
absence from employment or service due to illness, vacation or leave of absence nor a transfer from employment or service with
the Company to employment or service with an Affiliate (or vice-versa) shall be considered a termination of employment or service
with the Company or an Affiliate; and (ii) if a Participant’s employment with the Company and its Affiliates terminates,
but such Participant continues to provide services to the Company and its Affiliates in a non-employee capacity (or vice-versa),
such change in status shall not be considered a termination of employment with the Company or an Affiliate.

 

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(h) No
Rights as a Shareholder. Except as otherwise specifically provided in this Plan or any Award agreement, no person shall
be entitled to the privileges of ownership in respect of Ordinary shares that are subject to Awards hereunder until such shares
have been issued or delivered to that person.

 

(i) Government
and Other Regulations.

 

(i) The
obligation of the Company to settle Awards in Ordinary shares or other consideration shall be subject to all applicable laws, rules,
and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of
any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering
to sell or selling, any Ordinary shares pursuant to an Award unless such shares have been properly registered for sale pursuant
to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel, satisfactory
to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom
and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register
for sale under the Securities Act any of the Ordinary shares to be offered or sold under this Plan. The Committee shall have the
authority to provide that all certificates for Ordinary shares or other securities of the Company or any Affiliate delivered under
this Plan shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under this Plan,
the applicable Award agreement, the federal securities laws, or the rules, regulations and other requirements of the Securities
and Exchange Commission, any securities exchange or inter-dealer quotation system upon which such shares or other securities are
then listed or quoted and any other applicable federal, state, local or non-U.S. laws, and, without limiting the generality of
Section 9 of this Plan, the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference
to such restrictions. Notwithstanding any provision in this Plan to the contrary, the Committee reserves the right to add any additional
terms or provisions to any Award granted under this Plan that it in its sole discretion deems necessary or advisable in order that
such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is subject. 

 

(ii) The
Committee may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual restrictions
and/or blockage and/or other market considerations would make the Company’s acquisition of Ordinary shares from the public
markets, the Company’s issuance of Ordinary shares to the Participant, the Participant’s acquisition of Ordinary shares
from the Company and/or the Participant’s sale of Ordinary shares to the public markets, illegal, impracticable or inadvisable.
If the Committee determines to cancel all or any portion of an Award in accordance with the foregoing, unless doing so would violate
Section 409A of the Code, the Company shall pay to the Participant an amount equal to the excess of (A) the aggregate fair market
value of the Ordinary shares subject to such Award or portion thereof canceled (determined as of the applicable exercise date,
or the date that the shares would have been vested or delivered, as applicable), over (B) the aggregate Exercise Price or Strike
Price (in the case of an Option or SAR, respectively) or any amount payable as a condition of delivery of Ordinary shares (in the
case of any other Award). Such amount shall be delivered to the Participant as soon as practicable following the cancellation of
such Award or portion thereof. The Committee shall have the discretion to consider and take action to mitigate the tax consequence
to the Participant in cancelling an Award in accordance with this clause.

 

(j) Payments
to Persons Other Than Participants. If the Committee shall find that any person to whom any amount is payable under this
Plan is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any payment due to such
person or his estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if the Committee
so directs the Company, be paid to his spouse, child, relative, an institution maintaining or having custody of such person, or
any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such
payment shall be a complete discharge of the liability of the Committee and the Company therefor.

 

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(k) Nonexclusivity
of this Plan. Neither the adoption of this Plan by the Board nor the submission of this Plan to the Shareholders of the
Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements
as it may deem desirable, including, without limitation, the granting of Share options or other equity-based awards otherwise than
under this Plan, and such arrangements may be either applicable generally or only in specific cases.

 

(l) No
Trust or Fund Created. Neither this Plan nor any Award shall create or be construed to create a trust or separate fund
of any kind or a fiduciary relationship between the Company or any Affiliate, on the one hand, and a Participant or other person
or entity, on the other hand. No provision of this Plan or any Award shall require the Company, for the purpose of satisfying any
obligations under this Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made
or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of
the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights
under this Plan other than as general unsecured creditors of the Company, except that insofar as they may have become entitled
to payment of additional compensation by performance of services, they shall have the same rights as other employees under general
law.

 

(m) Reliance
on Reports. Each member of the Committee and each member of the Board shall be fully justified in acting or failing to
act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance upon any report
made by the independent public accountant of the Company and its Affiliates and/or any other information furnished in connection
with this Plan by any agent of the Company or the Committee or the Board, other than himself.

 

(n) Relationship
to Other Benefits. No payment under this Plan shall be taken into account in determining any benefits under any pension,
retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such
other plan.

 

(o) Governing
Law. The Plan shall be governed by and construed in accordance with the internal laws of the Cayman Islands, without giving
effect to the conflict of laws provisions.

 

(p) Severability.
If any provision of this Plan or any Award or Award agreement is or becomes or is deemed to be invalid, illegal, or unenforceable
in any jurisdiction or as to any person or entity or Award, or would disqualify this Plan or any Award under any law deemed applicable
by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws in the manner that most
closely reflects the original intent of the Award or the Plan, or if it cannot be construed or deemed amended without, in the determination
of the Committee, materially altering the intent of this Plan or the Award, such provision shall be construed or deemed stricken
as to such jurisdiction, person or entity or Award and the remainder of this Plan and any such Award shall remain in full force
and effect.

 

(q) Obligations
Binding on Successors. The obligations of the Company under this Plan shall be binding upon any successor corporation or
organization resulting from the merger, amalgamation, consolidation or other reorganization of the Company, or upon any successor
corporation or organization succeeding to substantially all of the assets and business of the Company.

 

(r) Code
Section 162(m) Approval. If so determined by the Committee, the provisions of this Plan regarding Performance Compensation
Awards shall be disclosed and reapproved by Shareholders no later than the first Shareholder meeting that occurs in the fifth year
following the year in which Shareholders previously approved such provisions, in each case in order for certain Awards granted
after such time to be exempt from the deduction limitations of Section 162(m) of the Code. Nothing in this clause, however, shall
affect the validity of Awards granted after such time if such Shareholder approval has not been obtained.

 

(s) Expenses;
Gender; Titles and Headings. The expenses of administering this Plan shall be borne by the Company and its Affiliates.
Masculine pronouns and other words of masculine gender shall refer to both men and women. The titles and headings of the sections
in this Plan are for convenience of reference only, and in the event of any conflict, the text of this Plan, rather than such titles
or headings shall control.

 

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(t) Other
Agreements. Notwithstanding the above, the Committee may require, as a condition to the grant of and/or the receipt of
Ordinary shares under an Award, that the Participant execute lock-up, Shareholder or other agreements, as it may determine in its
sole and absolute discretion. 

 

(u) Section
409A. The Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt from, the requirements
of Section 409A of the Code. The Plan and all Awards granted under this Plan shall be administered, interpreted, and construed
in a manner consistent with Section 409A of the Code to the extent necessary to avoid the imposition of additional taxes under
Section 409A(a)(1)(B) of the Code. Notwithstanding anything in this Plan to the contrary, in no event shall the Committee exercise
its discretion to accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred compensation
within the meaning of Section 409A of the Code unless, and solely to the extent that, such accelerated payment or settlement is
permissible under Section 1.409A-3(j)(4) of the Treasury Regulations. If a Participant is a “specified employee” (within
the meaning of Section 1.409A-1(i) of the Treasury Regulations) at any time during the twelve (12)-month period ending on the date
of his termination of employment, and any Award hereunder subject to the requirements of Section 409A of the Code is to be satisfied
on account of the Participant’s termination of employment, satisfaction of such Award shall be suspended until the date that
is six (6) months after the date of such termination of employment.

 

(v) Payments. Participants
shall be required to pay, to the extent required by applicable law, any amounts required to receive Ordinary shares under any Award
made under this Plan.

 

 

19

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