Document:

Exhibit 10.1

 

TECHNOLOGY SERVICES AGREEMENT

 

This Technology Services Agreement (this
“Agreement”) is made as of March 21, 2018 (the “Effective Date”), by and between ProximaX
Limited, a Gibraltar private company limited by shares, with a place of business at E-6-3, BLOCK E PLAZA GLOMAC, NO. 6 JALAN SS
7/19, KELANA JAYA, 47301 PETALING JAYA, SELANGOR DARUL EHSAN, MALAYSIA. (“Customer”), and PeerStream, Inc.,
a Delaware corporation, with a principal place of business at 122 East 42nd Street, Suite 2600, New York, NY 10168 (“Provider”).

 

RECITALS

 

WHEREAS,
Provider is engaged in the design and development of a media streaming and secure messaging protocol known as the “PeerStream
Protocol” (the “Provider Protocol”);

 

WHEREAS,
Customer is developing a protocol to enhance existing blockchain technology by integrating storage, streaming, consensus algorithms,
and other features, known as “ProximaX” (the “Customer Protocol”); and

 

WHEREAS, the parties
wish for Provider to provide certain development and related services to Customer to facilitate the implementation of the Provider
Protocol into the Customer Protocol, according to the terms set forth herein.

 

NOW THEREFORE,
in consideration of the foregoing, the mutual covenants and agreements of the parties contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

		1.	DEFINITIONS. The following terms will have the following meanings:

 

		1.1.	“Affiliate” means, with respect to either party, any entity
that controls, is controlled by, or is under common control with such party.

 

		1.2.	“Background IP” means any IP Rights owned by a party prior
to the Effective Date or acquired or developed by such party outside of the scope of this Agreement. For avoidance of doubt, Provider’s
Background IP includes the Provider Protocol and its components.

 

		1.3.	“Compensation” means cash, equity, cash equivalent, or
equity equivalent compensation, as further specified in the applicable SOW.

 

		1.4.	“Confidential Information” means any technical, financial,
business or other information, whether in tangible or intangible form, that is either marked or designated as confidential or proprietary
or that, due to the nature of the information or the circumstances of its disclosure, should be reasonably understood to be confidential.
Confidential Information does not include any information that the receiving party can establish: (i) is or becomes generally known
or available to the public through no fault of the receiving party; (ii) was known to the receiving party, without obligations
of confidentiality, prior to receipt from the other party; (iv) was subsequently provided to the receiving party by a third party,
without obligations of confidentiality; or (iii) was independently developed by the receiving party without reference to any Confidential
Information of the other party.

 

		1.5.	“Custom Development” means a custom Development created
by Provider specifically to facilitate the implementation of the Provider Protocol with and into the Customer Protocol and which
does not have general applicability for solutions other than the Provider Protocol.

 

     

     

    

 

		1.6.	“Deliverables” means the deliverables set forth in each
SOW.

 

		1.7.	“Development” means any and all inventions, works of authorship,
and other developments created by Provider in connection with the Services.

 

		1.8.	“IP Rights” means any rights under copyright, patent,
trade secret, or other intellectual property laws.

 

		1.9.	“Retained Development” means any Development made by Provider
that is either a derivative work of, or an improvement to, any of Provider’s Background IP, or that has general applicability
for solutions other than the Provider Protocol.

 

		1.10.	“Services” means the development, integration, or other
services provided by Provider hereunder, as may be further described in the applicable SOW.

 

		1.11.	“Specifications” means the technical specifications set
forth in the applicable SOW.

 

		1.12.	“SOW” means one or more statements of work executed by
Customer and Provider, specifying in detail the Services to be provided by Provider and any applicable fees, timelines, and Deliverables.
An initial SOW agreed to by the parties is attached hereto as Exhibit A.

 

		2.	SCOPE OF SERVICES.

 

		2.1.	Generally. Provider will provide the Services to Customer, and Customer
will compensate Provider for such Services, on the terms and conditions set forth in this Agreement and the applicable SOW. Each
party will provide all reasonable strategic, technical, and other cooperation to facilitate the timely completion of the Services.
For the avoidance of doubt, it is hereby understood and agreed by the parties hereto that the Services to be provided by Provider
to Customer under this Agreement (or any SOW attached hereto) shall not involve the assistance by Provider with the marketing and
sale of the tokens in the ICO (as defined on Exhibit A), and that any and all such activities shall be conducted solely by Customer
and the ICO Affiliates (as defined on Exhibit A).

 

		2.2.	Project Manager. The parties shall each appoint a project manager to serve as the primary
point of contact on each SOW and who has authorization to make any operational decisions required in connection with Provider’s
provision of the Services.

 

		2.3.	Changes. If Customer wishes to change the scope of any SOW, it will
make a written request to Provider’s project manager. The parties will review the proposed change and determine the effect
that the implementation of the change will have on price, schedule, and Deliverables. Upon completion of the review, any changes
in price, schedule or other terms will be documented. No requested changes will be binding until agreed to in writing by both parties.

 

		2.4.	Personnel. Provider will have the right to determine which of its
employees, agents, representatives, or subcontractors will be assigned to perform Services under this Agreement.

 

		3.	COMPENSATION.

 

		3.1.	Compensation. Customer will pay Provider the applicable Compensation
in accordance with the terms and conditions of the SOW.

 

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		3.2.	Invoices; Payment. For any cash consideration, Provider will invoice Customer as set forth
in the SOW. Customer will pay any invoiced amounts within 30 days from receipt of invoice. Any undisputed amount payable to Provider
under this Agreement that is not paid within 30 days after receipt of invoice will bear interest at a rate equal to the lower of
1% per month, or the highest rate permitted by law.

 

		3.3.	Taxes. All taxes will be separately itemized on each invoice, indicating the tax and the
charges against which such tax was calculated. At Customer’s request, Provider will provide documentation supporting the
collection of any expense, tax or duty, Provider’s right to collect it and proof that appropriate taxes were paid. In no
event will Customer pay any taxes in respect of Provider’s net income or property.

 

		4.	TERM; TERMINATION.

 

		4.1.	Term. This Agreement commences on the Effective Date and, unless terminated
by the parties in accordance with this Section 4, continues for the longer of one year or so long as an SOW remains in effect (the
“Term”).

 

		4.2.	Termination for Cause. Either party may, by delivery of written notice
to the other party, terminate a particular SOW if: (a) the other party materially breaches its obligations under the SOW and fails
to cure such breach within 30 days after receipt of written notice of same from the non-breaching party; or (b) the other party
is adjudicated insolvent, admits in writing its inability to pay its debts as they mature, makes an assignment for the benefit
of its creditors, is adjudged bankrupt or becomes the subject of execution, dissolution, liquidation or bankruptcy proceedings,
whether voluntarily or involuntarily. The termination of a single SOW will have no effect upon the parties’ respective obligations
under any other SOW in effect under this Agreement.

 

		4.3.	Effect. Termination or expiration of this Agreement will not affect
any liabilities of the parties accruing during the Term. Sections 5 through 10 of this Agreement will survive any termination or
expiration thereof.

 

		4.4.	Retroactivity. The parties acknowledge that Provider began providing
Services hereunder as of November 27, 2017 based on a mutual understanding with Customer, that this Agreement confirms and memorializes
the understanding pursuant to which Provider has been providing services to Customer, and that any Services, Developments, Deliverables,
and IP Rights provided or developed by Provider in connection with such prior Services will be equally governed by this Agreement
as though provided or developed during the Term.

 

		5.	INTELLECTUAL PROPERTY

 

		5.1.	Background IP. Each party will retain ownership of its Background IP, and nothing in this
Agreement will be deemed to grant any such ownership to the other party.

 

		5.2.	Custom Developments. Subject to Customer’s payment of the Compensation: (i) Customer
will own all right, title, and interest in and to the Custom Developments, including any IP Rights therein; and (ii) Provider hereby
assigns, and will automatically assign, to Customer any right, title, or interest Provider may have in any Custom Developments,
including any IP Rights therein.

 

		5.3.	Retained Developments. Provider will retain all right, title, and interest in and to any
Retained Developments, including any IP Rights therein. Customer hereby assigns, and will automatically assign, to Provider any
right, title, or interest Customer may have in any Retained Developments, including any IP Rights therein.

 

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		5.4.	Deliverables. Subject to Customer’s payment of the Compensation: (i) all Deliverables
will be owned by Customer, subject to Provider’s retention of rights in any Provider Background IP and Retained Developments
(collectively, “Provider IP”); and (ii) to the extent the Deliverables incorporate any Provider IP, Provider
grants to Customer a non-exclusive, worldwide, perpetual, irrevocable, sub-licensable, transferable, royalty-free, fully-paid license
to use, reproduce, create derivative works, perform and display the Provider IP as incorporated in the Deliverables. For avoidance
of doubt, this license does not give Customer the right to reverse-engineer or otherwise separate any Provider IP from the Deliverables
in which such Provider IP is incorporated.

 

		5.5.	Further Assurances. Each party will perform all lawful acts reasonably requested by the
other party in order to perfect, maintain, or evidence the rights and licenses set forth in this Section 5.

 

		6.	CONFIDENTIALITY

 

		6.1.	Protection. Each party shall protect the other’s Confidential
Information from unauthorized use or disclosure using the same degree of care that it uses to protect its own confidential information,
but in no event less than reasonable care. Neither party will use the other’s Confidential Information other than as necessary
to fulfill its obligations or exercise its rights under this Agreement. Neither party shall disclose the other’s Confidential
Information to third parties (except as required by law or to that party’s attorneys, accountants and other advisors as reasonably
necessary). The receiving party may disclose Confidential Information of the disclosing party if required to be disclosed by law,
provided the receiving party has promptly notified the disclosing party of such requirement and allowed the disclosing party a
reasonable time to oppose such requirement.

 

		6.2.	Survival; Return. The obligations of confidentiality hereunder with
regards to any particular Confidential Information will survive for the greater of five years, or so long as such Confidential
Information remains protected as a trade secret under applicable law. Each party will return all copies of the other party’s
Confidential Information in its possession or control upon the reasonable request of the other party, except for (a) copies contained
in backup media created in the ordinary course of business or (b) copies retained by legal counsel or as required by law. Any such
retained copies will remain subject to the obligations of confidentiality set forth herein.

 

		7.	WARRANTIES; DISCLAIMER

 

		7.1.	Mutual Warranties. Each party represents and warrants that: (i) it
is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation or organization and
has full power and authority to enter into and perform its obligations and engage in the activities contemplated under this Agreement;
(ii) its entry into this Agreement and performance hereunder does not and will not conflict with or violate any agreement or obligation
it has to any third party; and (iii) it is and shall remain fully in compliance with all applicable laws, rules, and regulations.

 

		7.2.	Customer Warranties and Covenants. Customer hereby represents and
warrants to, and covenants with, Provider that:

 

		(i)	either Customer or one or more of the ICO Affiliates (as defined on Exhibit
A attached hereto) shall control, and shall be responsible for the content of, any and all statements made in any and all materials
(including, without limitation, slide decks, power point presentations, “sizzle reels”, business plans and web site
descriptions) that are prepared or provided to potential investors in connection with the ICO (as defined on Exhibit A attached
hereto), including, without limitation, the white paper (the “White Paper”) with respect to the new “XPX”
cryptocurrency (such cryptocurrency, the “Token”, and all of the aforementioned materials, the “Marketing
Materials”);

 

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		(ii)	to the extent that Provider makes any suggestions (or provides any advice)
with respect to the content of the Marketing Materials, or provides any content to be inserted into the Marketing Materials, the
decision as to whether or not (and to what extent) such suggestions, advice or content shall be incorporated into the Marketing
Materials shall be made by Customer or the applicable ICO Affiliate, and not by Provider;

 

		(iii)	neither Customer nor any of the ICO Affiliates is an “affiliate”
of Provider (as such term is defined in Rule 405 promulgated under the Securities Act of 1933, as amended);

 

		(iv)	Provider does not have any ability, whether by agreement, ownership of securities
or otherwise, to control the business, properties or affairs of either Customer or any of the ICO Affiliates;

 

		(v)	no executive officer of Provider or member of Provider’s Board of Directors
currently serves, or has served within the past six (6) months, as an executive officer or member of the Board of Directors (or
similar governing body) of Customer or any of the ICO Affiliates;

 

		(vi)	Customer and the ICO Affiliates shall use their best efforts to ensure that
residents of the United States do not purchase or otherwise acquire Tokens in the ICO, or that the marketing activities relating
to the ICO do not target residents of the United States, which efforts shall include, without limitation, the engagement of reasonably
appropriate third party verification services, and the verification of the physical and IP addresses of all of the participants
in the ICO;

 

		(vii)	neither Customer nor any of the ICO Affiliates, nor any affiliates of any
of the foregoing, has taken any actions to solicit the purchase of the Tokens in the ICO by residents of the United States; and

 

		(viii)	the statements to be set forth in the Marketing Materials, when used in connection
with the marketing of the ICO, will be true, correct and complete in all material respects, including, without limitation, Sections
5.1, 5.2 and 5.3 of the White Paper (relating to the anticipated development roadmap for the Token for 2018, 2019 and subsequent
periods), Section 5.5 of the White Paper (relating to ongoing projects), Section 6.1 of the White Paper (relating to the distribution
of the Token) and Section 7 of the White Paper (relating to the use of funds to be received from the ICO), and will not contain
any material misstatements or omissions.

 

		7.3.	Provider Warranties. For a period of 90 days from performance or delivery,
as applicable (the “Warranty Period”), Provider represents and warrants that the Services will be performed
in a professional and workmanlike manner, and that the Deliverables will materially conform to the Specifications. Customer’s
exclusive remedy, and Provider’s sole obligation, in the event of a breach of warranty during the Warranty Period, will be
for Provider to promptly re-perform, repair, or replace the affected Service or Deliverable at no additional charge.

 

		7.4.	DISCLAIMER. EXCEPT AS EXPRESSLY SET FORTH ABOVE, THE SERVICES AND
DELIVERABLES ARE PROVIDED AS IS AND AS AVAILABLE AND PROVIDER MAKES NO WARRANTIES, WHETHER EXPRESS, STATUTORY, OR IMPLIED, INCLUDING
THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, OR NON-INFRINGEMENT.

 

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		8.	LIMITATION OF LIABILITY

 

TO THE MAXIMUM EXTENT PERMITTED
BY LAW, AND REGARDLESS OF WHETHER A CLAIM ARISES OUT OF CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, OR ANY OTHER LEGAL OR EQUITABLE
THEORY, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR: (A) SPECIAL, INCIDENTAL, INDIRECT, EXEMPLARY OR CONSEQUENTIAL
DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, LOST PROFITS, LOST DATA, OR LOST BUSINESS, EVEN IF SUCH PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER ARISING OUT OF CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, OR ANY OTHER LEGAL OR
EQUITABLE THEORY; OR (B) DAMAGES IN EXCESS OF THE AMOUNT OF COMPENSATION PAID BY CUSTOMER TO PROVIDER IN THE 12 MONTHS PRECEDING
THE CLAIM. THIS SECTION WILL NOT LIMIT A PARTY’S INDEMNIFICATION OBLIGATIONS UNDER SECTION 9.

 

		9.	INDEMNITY

 

		9.1.	Indemnity. Each party will indemnify, defend, and hold harmless the other party against
any liabilities, costs, and expenses (including without limitation reasonable attorney’s fees) incurred in connection with
any third party claims to the extent based on (i) a breach of the representations, warranties and covenants of such party contained
in Section 7 of this Agreement; or (ii) an allegation that any products or materials provided by the indemnifying party infringe
or misappropriate any third party IP Rights.

 

		9.2.	Procedure. In the event of an Indemnified Claim, the party seeking indemnity will: (i) provide
the other party prompt written notice of such claim, provided that no delay will affect the indemnifying party’s obligations
except to the extent such delay was materially prejudicial to it); (ii) grant the indemnifying party the right to defend any such
claim with its counsel of choice, provided that the indemnifying party will not settle such claim in any way that imposes any financial
or other liabilities or obligations on the indemnified party, except with prior written consent of the indemnified party; and (iii)
provide such assistance and information as the indemnifying party may reasonably require to settle or oppose such claims, at the
indemnifying party’s expense. The indemnified party may participate in the defense or settlement of such claim at its own
expense and with its own choice of counsel.

 

		9.3.	Mitigation. In addition to Provider’s obligations under Section 9.1, if any Deliverable
is held, or in Provider’s opinion is likely to be held, to infringe or misappropriate any third party’s IP Rights,
Provider may, at its expense and option: (a) procure the right for Customer to continue using the Deliverable; or (b) replace the
Deliverable with a non-infringing product materially conforming to the Specifications; or (c) modify the Deliverable to make it
non-infringing while materially conforming to the Specifications. If none of the foregoing options are commercially feasible, Provider
may terminate this Agreement and refund Customer any prepaid fees for such infringing Deliverable.

 

		10.	GENERAL.

 

		10.1.	Force Majeure. Neither party will be liable for any failure or delay in its performance
hereunder to the extent due to any cause beyond its reasonable control, which may include natural disasters, acts of war, acts
of God, earthquake, flood, fire, freezing or other casualty, embargo, riot, sabotage, governmental act, pervasive failure of the
Internet, failure by telecommunications providers, terrorism and civil commotion. The non-affected party may terminate this Agreement
if such cause prevents the other party’s performance for a period exceeding 60 days.

 

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		10.2.	Independent Parties. The parties are independent contractors, and nothing in this Agreement
will be deemed to create any partnership, joint venture, principal-agent or employer-employee relationship between the parties.

 

		10.3.	Severability. If any provision in this Agreement is invalid or unenforceable, that provision
will be construed, limited, modified or, if necessary, severed, to the extent necessary, to eliminate its invalidity or unenforceability,
and the other provisions of this Agreement will remain in full force and effect.

 

		10.4.	Assignment. Neither party may assign this Agreement, except to an Affiliate, without the
other party’s prior written consent (which will not be unreasonably withheld). Any attempt to assign this Agreement in violation
of this section, will be null and void. This Agreement will be binding upon the parties hereto and their heirs, successors, and
assigns.

 

		10.5.	Waiver. No waiver of any right under this Agreement shall be deemed effective unless contained
in writing signed by a duly authorized representative of the waiving party, and no waiver of any past or present right arising
from any breach or failure to perform shall be deemed to be a waiver of any future right arising under this Agreement.

 

		10.6.	Governing Law. This Agreement is entered into and governed by the laws of the State of New
York, without reference to conflict of laws principles. The parties hereby consent and submit to the exclusive jurisdiction of
the federal and state courts in New York, New York to resolve any disputes arising in connection with this Agreement.

 

		10.7.	Notices. Except as otherwise provided in this Agreement, any notice required or permitted
to be sent by one of the parties shall be delivered by hand, by overnight courier, by facsimile, or by registered mail, return
receipt requested, to the address of the parties first set forth in this Agreement or to such other address of the parties designated
in writing in accordance with this subparagraph. Notice will be deemed given when delivered by hand, the following day after being
sent by overnight courier, when electronically confirmed after being sent by facsimile and three (3) business days after being
sent by registered mail.

 

		10.8.	Entire Agreement. This Agreement, together with all Exhibits hereto and any SOWs incorporated
hereunder, constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes and replaces
any prior or contemporaneous agreements or understandings regarding such subject matter. The terms of this Agreement may be modified
only by a writing that expressly references this Agreement and is executed by the parties.

 

		10.9.	Execution; Counterparts. This Agreement may be executed in one or more counterparts (including
electronic .pdf counterparts), each of which shall be deemed an original and all of which together shall constitute but one instrument.

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement by their duly authorized representatives as of the Effective Date.

 

	
        PEERSTREAM, INC.
	 	PROXIMAX LIMITED
	 	 	 
	By:	/s/ Alexander Harrington	 	By:	/s/ Kian Lon WONG
	Name:	Alexander Harrington	 	Name:	Kian Lon WONG
	Title:	CEO	 	Title:	Director

 

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Exhibit A

 

Statement of Work No. 1

 

	
        Request #
	 	Request

Date	 	Target

Delivery

Date	 	Deliverable	 	Supporting Tasks
	1	 	11/27/2017	 	12/04/2017	 	Establish initial Dev Team	 	●  Introduction
to client/establish Telegram group (Lon)
	2	 	11/27/2017	 	12/11/2017	 	Architecture draft for Smartproof streaming and messaging layer	 	
        ●   Present
        first draft architecture to Lon and Alvin (Team lead)

        ●   Approval to
proceed with R&D with weekly updates

	3	 	01/24/2018	 	03/31/2018	 	R&D and Code Development - Milestone #1 - Q2'18	 	
        ●   Defining dynamic
data store structure and event bus.

        ●   Architecting
node ecosystem and routing layer.

        ●   Implementing
blockchain communication layer.

	4	 	01/24/2018	 	06/31/2018	 	R&D and Code Development - Milestone #2 - Q3'18	 	
        ●   Developing
node ecosystem and routing layer.

        ●   Developing
discovery ecosystem.

        ●   Ensuring signal
protocol compatibility to support Dapp requirements.

	5	 	01/24/2018	 	09/31/2018	 	R&D and Code Development - Milestone #3 - Q4'18	 	
        ●   Establishing
client side SDK/APIs.

        ●   Developing
commercial centralized nodes.

        ●   Working on
media delivery quality.

        ●   Getting the
first beta platform out publicly with bootstrapped set of nodes.

 

Target dates above are targets and estimates only. Customer
acknowledges that any delays in providing necessary information or cooperation to Provider, or any changes in the scope or assumptions
of the project, may result in unanticipated delays.

 

Compensation:

 

It is anticipated that Customer or its
affiliates (the “ICO Affiliate”) will launch an initial coin offering of the new “XPX” cryptocurrency
(the “ICO”), of which Customer or one of the ICO Affiliates will be the issuer. The ICO will either be consummated
(a “Consummation”) or cancelled (a “Cancellation”), at the discretion of Customer or one
or more of the ICO Affiliates, provided that the ICO will not be Cancelled if it is able to raise at least $30,000,000 USD.

 

All amounts listed herein are in USD, and
may be measured in cash or in an equivalent value of cryptocurrencies (provided such cryptocurrencies are of a type that was accepted
from subscribers in the ICO) based on the then-current exchange rate listed on coinmarketcap.com.

 

Provided the ICO is Consummated and raises
at least $30,000,000, then:

 

		1.	Customer will transfer, or ensure that the ICO Affiliate transfers, to Provider 2.4% of all initial
XPX stakes on the date of the ICO Consummation, and will hold, or ensure that the ICO Affiliate holds, an additional 2% of all
initial XPX stakes in reserve for payment for future services to be provided by Provider, as agreed upon by the parties from time
to time; and

 

		2.	Customer will also pay, or ensure that the ICO Affiliate pays, Provider:

 

		●	$5,000,000 upon Consummation of the ICO;

 

		●	$2,500,000 upon delivery of item 4 in the table above (R&D and Code Development - Milestone
#2 - Q3'18); and

 

		●	$2,500,000 upon delivery of item 5 in the table above (R&D and Code Development - Milestone
#3 - Q4'18).

 

If either: (i) the ICO does not raise at
least $30,000,000 USD, or (ii) the $5,000,000 payment listed above has not been made by June 1, 2018, then the parties will negotiate
in good faith to agree on appropriate alternative compensation. If the parties are unable to agree on reasonable alternative compensation,
Provider may terminate the Agreement and revoke the assignments and licenses made and granted to Customer under Sections 5.2 and
5.4 of the Agreement, in which case Customer will retain no ownership of or license to any Custom Developments, Deliverables, or
Provider IP.

 

 

8 of 8Exhibit 4.9

 

STAR BULK CARRIERS CORP.

 2017 EQUITY INCENTIVE PLAN

 

ARTICLE I.

 General

 

1.1.          Purpose

 

The Star Bulk Carriers Corp. 2017 Equity Incentive Plan (the “Plan”) is designed to provide certain key persons, whose initiative and efforts are deemed to be important to the successful conduct of the business of Star Bulk Carriers Corp. (the “Company”), with incentives to (a) enter into and remain in the service of the Company or its Affiliates and Subsidiaries (as defined below), (b) acquire a proprietary interest in the success of the Company, (c) maximize their performance and (d) enhance the long-term performance of the Company.

 

1.2.          Administration

 

(a)          Administration. The Plan shall be administered by the Compensation Committee (the “Compensation Committee”) of the Company’s Board of Directors (the “Board”) or such other committee of the Board as may be designated by the Board to administer the Plan (the Compensation Committee or such committee, as applicable, the “Administrator”); in the event the Company is subject to Section 16 of the U.S. Securities Exchange Act of 1934, as amended (the “1934 Act”), the Administrator shall be composed of two or more directors, each of whom is a “Non-Employee Director” (a “Non-Employee Director”) under Rule 16b-3 (as promulgated and interpreted by the Securities and Exchange Commission (the “SEC”) under the 1934 Act, or any successor rule or regulation thereto as in effect from time to time, Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the Administrator by the Plan, the Administrator shall have the full power and authority to: (1) designate the Persons to receive Awards (as defined below) under the Plan; (2) determine the types of Awards granted to a participant under the Plan; (3) determine the number of shares to be covered by, or with respect to which payments, rights or other matters are to be calculated with respect to, Awards; (4) determine the terms and conditions of any Awards; (5) determine whether, and to what extent, and under what circumstances, Awards may be settled or exercised in cash, shares, other securities, other Awards or other property, or cancelled, forfeited or suspended, and the methods by which Awards may be settled, exercised, cancelled, forfeited or suspended; (6) determine whether, to what extent, and under what circumstances cash, shares, other securities, other Awards, other property and other amounts payable with respect to an Award shall be deferred, either automatically or at the election of the holder thereof or the Administrator; (7) construe, interpret and implement the Plan and any Award Agreement (as defined below); (8) prescribe, amend, rescind or waive rules and regulations relating to the Plan, including rules governing its operation, and appoint such agents as it shall deem appropriate for the proper administration of the Plan; (9) make all determinations necessary or advisable in administering the Plan; (10) correct any defect, supply any omission and reconcile any inconsistency in the Plan or any Award Agreement; and (11) make any other determination and take any other action that the Administrator deems necessary or desirable for the administration of the Plan. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Administrator, may be made at any time and shall be final, conclusive and binding upon all Persons.

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(b)          General Right of Delegation. Except to the extent prohibited by applicable law, the applicable rules of a stock exchange or any charter, by-laws or other agreement governing the Administrator, the Administrator may delegate all or any part of its responsibilities to any Person or Persons selected by it and may revoke any such allocation or delegation at any time.

 

(c)          Indemnification. No member of the Board, the Administrator or any employee of the Company or any of its Affiliates (each such Person, a “Covered Person”) shall be liable for any action taken or omitted to be taken or any determination made in good faith with respect to the Plan or any Award hereunder. Each Covered Person shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability or expense (including attorneys’ fees) that may be imposed upon or incurred by such Covered Person in connection with or resulting from any action, suit or proceeding to which such Covered Person may be a party or in which such Covered Person may be involved by reason of any action taken or omitted to be taken under the Plan or any Award Agreement and (ii) any and all amounts paid by such Covered Person, with the Company’s approval, in settlement thereof, or paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding against such Covered 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 a Covered Person to the extent that a court of competent jurisdiction in a final judgment or other final adjudication, in either case not subject to further appeal, determines that the acts or omissions of such Covered Person giving rise to the indemnification claim resulted from such Covered 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 Articles of Incorporation or Bylaws. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which Covered Persons may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any other power that the Company may have to indemnify such Persons or hold them harmless.

 

(d)          Delegation of Authority to Senior Officers. The Administrator may, in accordance with the terms of Section 1.2(b), delegate, on such terms and conditions as it determines, to one or more senior officers of the Company the authority to make grants of Awards to employees (other than officers) of the Company and its Subsidiaries (including any such prospective employee) and consultants of the Company and its Subsidiaries; provided, however, that in no event shall any such officer be delegated the authority to grant Awards to, or amend Awards held by, the following individuals: (i) individuals who are subject to Section 16 of the 1934 Act, or (ii) officers of the Company (or directors of the Company) to whom authority to grant or amend Awards has been delegated hereunder.

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(e)          Awards to Non-Employee Directors. Notwithstanding anything to the contrary contained herein, the Board may, in its sole discretion, at any time and from time to time, grant Awards to Non-Employee Directors or administer the Plan with respect to such Awards. In any such case, the Board shall have all the authority and responsibility granted to the Administrator herein.

 

1.3.          Persons Eligible for Awards

 

The Persons eligible to receive Awards under the Plan are those directors, officers and employees (including any prospective officer or employee) of the Company and its Subsidiaries and Affiliates and consultants and service providers (including individuals who are employed by or provide services to any entity that is itself such a consultant or service provider) to the Company and its Subsidiaries an Affiliates (collectively, “Key Persons”) as the Administrator shall select.

 

1.4.          Types of Awards

 

Awards may be made under the Plan in the form of (a) stock options, (b) stock appreciation rights, (c) restricted stock, (d) restricted stock units and (e) unrestricted stock, all as more fully set forth in the Plan. The term “Award” means any of the foregoing that are granted under the Plan.

 

1.5.          Shares Available for Awards; Adjustments for Changes in Capitalization

 

(a)          Maximum Number. Subject to adjustment as provided in Section 1.5(c), the aggregate number of shares of common stock of the Company, par value $0.01 (“Common Stock”), with respect to which Awards may at any time be granted under the Plan shall be 950,000. The following shares of Common Stock shall again become available for Awards under the Plan: (i) any shares that are subject to an Award under the Plan and that remain unissued upon the cancellation or termination of such Award for any reason whatsoever; (ii) any shares of restricted stock forfeited pursuant to the Plan or the applicable Award Agreement; provided that any dividend equivalent rights with respect to such shares that have not theretofore been directly remitted to the grantee are also forfeited; and (iii) any shares in respect of which an Award is settled for cash without the delivery of shares to the grantee. Any shares tendered or withheld to satisfy the grant or exercise price or tax withholding obligation pursuant to any Award shall again become available to be delivered pursuant to Awards under the Plan.

 

(b)          Source of Shares. Shares issued pursuant to the Plan may be authorized but unissued Common Stock or treasury shares. The Administrator may direct that any stock certificate evidencing shares issued pursuant to the Plan shall bear a legend setting forth such restrictions on transferability as may apply to such shares.

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(c)          Adjustments. (i) In the event any dividend or other distribution (whether in the form of cash, Company shares, other securities or other property), stock split, reverse stock split, reorganization, merger, consolidation, split-up, combination, repurchase or exchange of Company shares or other securities of the Company, issuance of warrants or other rights to purchase Company shares or other securities of the Company, or other similar corporate transaction or event, other than an Equity Restructuring, affects the Company shares such that an adjustment is determined by the Administrator to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to an Award, then the Administrator shall, in such manner as it may deem equitable, adjust any or all of the number of shares or other securities of the Company (or number and kind of other securities or property) with respect to which Awards may be granted under the Plan.

 

(ii)          The Administrator is authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including the events described in Section 1.5(c)(i) or the occurrence of a Change in Control (as defined below), other than an Equity Restructuring) affecting the Company, any of its Affiliates, or the financial statements of the Company or any of its Affiliates, or of changes in applicable rules, rulings, regulations or other requirements of any governmental body or securities exchange, accounting principles or law, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to an Award, including providing for (A) adjustment to (1) the number of shares or other securities of the Company (or number and kind of other securities or property) subject to outstanding Awards or to which outstanding Awards relate and (2) the Exercise Price (as defined below) with respect to any Award and (B) a substitution or assumption of Awards, accelerating the exercisability or vesting of, or lapse of restrictions on, Awards, or accelerating the termination of Awards by providing for a period of time for exercise prior to the occurrence of such event, or, if deemed appropriate or desirable, providing for a cash payment to the holder of an outstanding Award in consideration for the cancellation of such Award (it being understood that, in such event, any option or stock appreciation right having a per share Exercise Price equal to, or in excess of, the Fair Market Value (as defined below) of a share subject to such option or stock appreciation right may be cancelled and terminated without any payment or consideration therefor; provided, however, that with respect to options and stock appreciation rights, unless otherwise determined by the Administrator, such adjustment shall be made in accordance with the provisions of Section 424(h) of the Code.

 

(iii)          In the event of (A) a dissolution or liquidation of the Company, (B) a sale of all or substantially all the Company’s assets or (C) a merger, reorganization or consolidation involving the Company or one of its Subsidiaries (as defined below), the Administrator shall have the power to:

 

(1) provide that outstanding options, stock appreciation rights and/or restricted stock units (including any related dividend equivalent right) shall either continue in effect, be assumed or an equivalent award shall be substituted therefor by the successor corporation or a parent corporation or subsidiary corporation;

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(2) cancel, effective immediately prior to the occurrence of such event, options, stock appreciation rights and/or restricted stock units (including each dividend equivalent right related thereto) outstanding immediately prior to such event (whether or not then exercisable) and, in full consideration of such cancellation, pay to the holder of such Award a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Administrator) of the shares subject to such Award over the aggregate Exercise Price of such Award (it being understood that, in such event, any option or stock appreciation right having a per share Exercise Price equal to, or in excess of, the Fair Market Value of a share subject to such option or stock appreciation right may be cancelled and terminated without any payment or consideration therefor; or

 

(3) notify the holder of an option or stock appreciation right in writing or electronically that each option and stock appreciation right shall be fully vested and exercisable for a period of 30 days from the date of such notice, or such shorter period as the Administrator may determine to be reasonable, and the option or stock appreciation right shall terminate upon the expiration of such period (which period shall expire no later than immediately prior to the consummation of the corporate transaction).

 

(iv)          In connection with the occurrence of any Equity Restructuring, and notwithstanding anything to the contrary in this Section 1.5(c):

 

(A)          The number and type of securities or other property subject to each outstanding Award and the Exercise Price or grant price thereof, if applicable, shall be equitably adjusted; and

 

(B)           The Administrator shall make such equitable adjustments, if any, as the Administrator may deem appropriate to reflect such Equity Restructuring with respect to the aggregate number and kind of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations set forth in Sections 1.5(a)). The adjustments provided under this Section 1.5(c)(iv) shall be nondiscretionary and shall be final and binding on the affected participant and the Company.

 

1.6.          Definitions of Certain Terms

 

(a)          The “Fair Market Value” of a share of Common Stock on any day shall be the closing price on the stock exchange upon which such shares are listed, as reported for such day in The Wall Street Journal, or, if no such price is reported for such day, the average of the high bid and low asked price of Common Stock as reported for such day. If no quotation is made for the applicable day, the Fair Market Value of a share of Common Stock on such day shall be determined in the manner set forth in the preceding sentence for the next preceding trading day. Notwithstanding the foregoing, if there is no reported closing price or high bid/low asked price that satisfies the preceding sentences, or if otherwise deemed necessary or appropriate by the Administrator, the Fair Market Value of a share of Common Stock on any day shall be determined by such methods and procedures as shall be established from time to time by the Administrator. The “Fair Market Value” of any property other than Common Stock shall be the fair market value of such property determined by such methods and procedures as shall be established from time to time by the Administrator.

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(b)          Unless otherwise set forth in an Award Agreement, in connection with a termination of employment or consultancy/service relationship or a dismissal from Board membership, for purposes of the Plan, the term “for Cause” shall be defined as follows:

 

(i)          if there is an employment, severance, consulting, service, change in control or other agreement governing the relationship between the grantee, on the one hand, and the Company or any of its Affiliates, on the other hand, that contains a definition of “cause” (or similar phrase), for purposes of the Plan, the term “for Cause” shall mean those acts or omissions that would constitute “cause” under such agreement; or

 

(ii)         if the preceding clause (i) is not applicable to the grantee, for purposes of the Plan, the term “for Cause” shall mean any of the following:

 

(A)          any failure by the grantee substantially to perform the grantee’s employment or consultancy/service or Board membership duties;

 

(B)          any excessive unauthorized absenteeism by the grantee;

 

(C)          any refusal by the grantee to obey the lawful orders of the Board or any other Person to whom the grantee reports;

 

(D)          any act or omission by the grantee that is or may be injurious to the Company or any of its Affiliates, whether monetarily, reputationally or otherwise;

 

(E)          any act by the grantee that is inconsistent with the best interests of the Company or any of its Affiliates;

 

(F)          the grantee’s gross negligence that is injurious to the Company or any of its Affiliates, whether monetarily, reputationally or otherwise;

 

(G)          the grantee’s material violation of any of the policies of the Company or any of its Affiliates, as applicable, including, without limitation, those policies relating to discrimination or sexual harassment;

 

(H)          the grantee’s material breach of his or her employment or service contract with the Company or any of its Affiliates;

 

(I)          the grantee’s unauthorized (1) removal from the premises of the Company or any of its Affiliates of any document (in any medium or form) relating to the Company or any of its Affiliates or the customers or clients of the Company or any of its Affiliates or (2) disclosure to any Person or entity of any of the Company’s, or any of its Affiliates’, confidential or proprietary information;

 

(J)          the grantee’s being convicted of, or entering a plea of guilty or nolo contendere to, any crime that constitutes a felony or involves moral turpitude; and

 

(K)         the grantee’s commission of any act involving dishonesty or fraud.

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Any rights the Company or any of its Affiliates may have under the Plan in respect of the events giving rise to a termination or dismissal “for Cause” shall be in addition to any other rights the Company or any of its Affiliates may have under any other agreement with a grantee or at law or in equity. Any determination of whether a grantee’s employment, consultancy/service relationship or Board membership is (or is deemed to have been) terminated “for Cause” shall be made by the Administrator. If, subsequent to a grantee’s voluntary termination of employment or consultancy/service relationship or voluntarily resignation from the Board or involuntary termination of employment or consultancy/service relationship without Cause or removal from the Board other than “for Cause”, it is discovered that the grantee’s employment or consultancy/service relationship or Board membership could have been terminated “for Cause”, the Administrator may deem such grantee’s employment or consultancy/service relationship or Board membership to have been terminated “for Cause” upon such discovery and determination by the Administrator.

 

(c)          “Affiliate” shall mean (i) any entity that, directly or indirectly, is controlled by, controls or is under common control with, the Company and (ii) any entity in which the Company has a significant equity interest, in either case as determined by the Administrator.

 

(d)          “Subsidiary” shall mean any entity in which the Company, directly or indirectly, has a 50% or more equity interest.

 

(e)          “Exercise Price” shall mean (i) in the case of options, the price specified in the applicable Award Agreement as the price-per-share at which such share can be purchased pursuant to the option or (ii) in the case of stock appreciation rights, the price specified in the applicable Award Agreement as the reference price-per-share used to calculate the amount payable to the grantee.

 

(f)          “Equity Restructuring” shall mean a non-reciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the shares of Common Stock (or other securities of the Company) or the share price thereof and causes a change in the per share value of the shares underlying outstanding Awards.

 

(g)          “Person” shall mean any individual, firm, corporation, partnership, limited liability company, trust, incorporated or unincorporated association, joint venture, joint stock company, governmental body or other entity of any kind.

 

(h)          “Repricing” shall mean (i) lowering the Exercise Price of an option or a stock appreciation right after it has been granted, (ii) cancellation of an option or a stock appreciation right in exchange for cash or another Award when the Exercise Price exceeds the Fair Market Value of the underlying shares subject to the Award and (iii) any other action with respect to an option or a stock appreciation right that is treated as a repricing under (A) generally accepted accounting principles or (B) any applicable stock exchange rules.

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ARTICLE II.

 Awards Under The Plan

 

2.1.          Agreements Evidencing Awards

 

Each Award granted under the Plan shall be evidenced by a written certificate (“Award Agreement”), which shall contain such provisions as the Administrator may deem necessary or desirable and which may, but need not, require execution or acknowledgment by a grantee. The Award shall be subject to all of the terms and provisions of the Plan and the applicable Award Agreement.

 

2.2.          Grant of Stock Options and Stock Appreciation Rights

 

(a)          Stock Option Grants. The Administrator may grant stock options (“options”) to purchase shares of Common Stock from the Company to such Key Persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, subject to the provisions of the Plan. No option will be treated as an “incentive stock option” for purposes of the Code. The Administrator shall not grant an Award in the form of stock options to an individual who is then subject to the requirements of Section 409A of the Code with respect to such Award if the Common Stock (as defined below) underlying such Award does not then qualify as “service recipient stock” for purposes of Section 409A.

 

(b)          Option Exercise Price. Each Award Agreement with respect to an option shall set forth the Exercise Price of such Award and, unless otherwise specifically provided in the Award Agreement, the Exercise Price of an option shall equal the Fair Market Value of a share of Common Stock on the date of grant; provided that in no event may such Exercise Price be less than the greater of (i) the Fair Market Value of a share of Common Stock on the date of grant and (ii) the par value of a share of Common Stock. Repricing of options granted under the Plan shall not be permitted (1) to the extent such action could cause adverse tax consequences to the grantee under Sections 409A or 457A of the Code or (2) without prior shareholder approval, to the extent such approval would be required to be obtained by the Company pursuant to the rules of any applicable stock exchange on which the Common Stock is then listed, and any action that would be deemed to result in a Repricing of an option shall be deemed null and void if it would cause such adverse tax consequences or if any requisite shareholder approval related thereto is not obtained prior to the effective time of such action.

 

(c)          Stock Appreciation Right Grants; Types of Stock Appreciation Rights. The Administrator may grant stock appreciation rights to such Key Persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, subject to the provisions of the Plan. The terms of a stock appreciation right may provide that it shall be automatically exercised for a payment upon the happening of a specified event that is outside the control of the grantee and that it shall not be otherwise exercisable. Stock appreciation rights may be granted in connection with all or any part of, or independently of, any option granted under the Plan. The Administrator shall not grant an Award in the form of stock appreciation rights to any Key Person (i) who is then subject to the requirements of Section 409A of the Code with respect to such Award if the Common Stock (as defined below) underlying such Award does not then qualify as “service recipient stock” for purposes of Section 409A or (ii) if such Award would create adverse tax consequences for such Key Person under Section 457A of the Code.

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(d)          Nature of Stock Appreciation Rights. The grantee of a stock appreciation right shall have the right, subject to the terms of the Plan and the applicable Award Agreement, to receive from the Company an amount equal to (i) the excess of the Fair Market Value of a share of Common Stock on the date of exercise of the stock appreciation right over the Exercise Price of the stock appreciation right, multiplied by (ii) the number of shares with respect to which the stock appreciation right is exercised. Each Award Agreement with respect to a stock appreciation right shall set forth the Exercise Price of such Award and, unless otherwise specifically provided in the Award Agreement, the Exercise Price of a stock appreciation right shall equal the Fair Market Value of a share of Common Stock on the date of grant; provided that in no event may such Exercise Price be less than the greater of (A) the Fair Market Value of a share of Common Stock on the date of grant and (B) the par value of a share of Common Stock. Payment upon exercise of a stock appreciation right shall be in cash or in shares of Common Stock (valued at their Fair Market Value on the date of exercise of the stock appreciation right) or any combination of both, all as the Administrator shall determine. Repricing of stock appreciation rights granted under the Plan shall not be permitted (1) to the extent such action could cause adverse tax consequences to the grantee under Sections 409A or 457A of the Code or (2) without prior shareholder approval, to the extent such approval would be required to be obtained by the Company pursuant to the rules of any applicable stock exchange on which the Common Stock is then listed, and any action that would be deemed to result in a Repricing of a stock appreciation right shall be deemed null and void if it would cause such adverse tax consequences or if any requisite shareholder approval related thereto is not obtained prior to the effective time of such action. Upon the exercise of a stock appreciation right granted in connection with an option, the number of shares subject to the option shall be reduced by the number of shares with respect to which the stock appreciation right is exercised. Upon the exercise of an option in connection with which a stock appreciation right has been granted, the number of shares subject to the stock appreciation right shall be reduced by the number of shares with respect to which the option is exercised.

 

2.3.          Exercise of Options and Stock Appreciation Rights

 

Subject to the other provisions of this Article II and the Plan, each option and stock appreciation right granted under the Plan shall be exercisable as follows:

 

(a)          Timing and Extent of Exercise. Options and stock appreciation rights shall be exercisable at such times and under such conditions as determined by the Administrator and set forth in the corresponding Award Agreement, but in no event shall any portion of such Award be exercisable subsequent to the tenth anniversary of the date on which such Award was granted. Unless the applicable Award Agreement otherwise provides, an option or stock appreciation right may be exercised from time to time as to all or part of the shares as to which such Award is then exercisable.

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(b)          Notice of Exercise. An option or stock appreciation right shall be exercised by the filing of a written notice with the Company or the Company’s designated exchange agent (the “Exchange Agent”), on such form and in such manner as the Administrator shall prescribe.

 

(c)          Payment of Exercise Price. Any written notice of exercise of an option shall be accompanied by payment for the shares being purchased. Such payment shall be made: (i) by certified or official bank check (or the equivalent thereof acceptable to the Company or its Exchange Agent) for the full option Exercise Price; (ii) with the consent of the Administrator, which consent shall be given or withheld in the sole discretion of the Administrator, by delivery of shares of Common Stock having a Fair Market Value (determined as of the exercise date) equal to all or part of the option Exercise Price and a certified or official bank check (or the equivalent thereof acceptable to the Company or its Exchange Agent) for any remaining portion of the full option Exercise Price; or (iii) at the sole discretion of the Administrator and to the extent permitted by law, by such other provision, consistent with the terms of the Plan, as the Administrator may from time to time prescribe (whether directly or indirectly through the Exchange Agent), or by any combination of the foregoing payment methods.

 

(d)          Delivery of Certificates Upon Exercise. Subject to Sections 3.2, 3.4 and 3.13, promptly after receiving payment of the full option Exercise Price, or after receiving notice of the exercise of a stock appreciation right for which the Administrator determines payment will be made partly or entirely in shares, the Company or its Exchange Agent shall (i) deliver to the grantee, or to such other Person as may then have the right to exercise the Award, a certificate or certificates for the shares of Common Stock for which the Award has been exercised or, in the case of stock appreciation rights, for which the Administrator determines will be made in shares or (ii) establish an account evidencing ownership of the stock in uncertificated form. If the method of payment employed upon an option exercise so requires, and if applicable law permits, an optionee may direct the Company or its Exchange Agent, as the case may be, to deliver the stock certificate(s) to the optionee’s stockbroker.

 

(e)          No Stockholder Rights. No grantee of an option or stock appreciation right (or other Person having the right to exercise such Award) shall have any of the rights of a stockholder of the Company with respect to shares subject to such Award until the issuance of a stock certificate to such Person for such shares. Except as otherwise provided in Section 1.5(c), no adjustment shall be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such stock certificate is issued.

 

2.4.          Termination of Employment; Death Subsequent to a Termination of Employment

 

(a)          General Rule. Except to the extent otherwise provided in paragraphs (b), (c), (d), (e) or (f) of this Section 2.4 or Section 3.5(b)(iii), a grantee who incurs a termination of employment or consultancy/service relationship or dismissal from the Board may exercise any outstanding option or stock appreciation right on the following terms and conditions: (i) exercise may be made only to the extent that the grantee was entitled to exercise the Award on the date of termination of employment or consultancy/service relationship or dismissal from the Board, as applicable; and (ii) exercise must occur within three months after termination of employment or consultancy/service relationship or dismissal from the Board but in no event after the original expiration date of the Award.

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(b)          Dismissal “for Cause”. If a grantee incurs a termination of employment or consultancy/service relationship or dismissal from the Board “for Cause”, all options and stock appreciation rights not theretofore exercised shall immediately terminate upon the grantee’s termination of employment or consultancy/service relationship or dismissal from the Board.

 

(c)          Retirement. If a grantee incurs a termination of employment or consultancy/service relationship or dismissal from the Board as the result of his or her retirement (as defined below), then any outstanding option or stock appreciation right shall, to the extent exercisable at the time of such retirement, remain exercisable for a period of three years after such retirement; provided that in no event may such option or stock appreciation right be exercised following the original expiration date of the Award. For this purpose, “retirement” shall mean a grantee’s resignation of employment or consultancy/service relationship or dismissal from the Board, with the Company’s or its applicable Affiliate’s prior consent, on or after (i) his or her 65th birthday, (ii) the date on which he or she has attained age 60 and completed at least five years of service with the Company or one or more of its Affiliates (using any method of calculation the Administrator deems appropriate) or (iii) if approved by the Administrator, on or after his or her having completed at least 20 years of service with the Company or one or more of its Affiliates (using any method of calculation the Administrator deems appropriate).

 

(d)          Disability. If a grantee incurs a termination of employment or consultancy/service relationship or a dismissal from the Board by reason of a disability (as defined below), then any outstanding option or stock appreciation right shall, to the extent exercisable at the time of such termination or dismissal, remain exercisable for a period of one year after such termination or dismissal of employment; provided that in no event may such option or stock appreciation right be exercised following the original expiration date of the Award. For this purpose, “disability” shall mean any physical or mental condition that would qualify the grantee for a disability benefit under the long-term disability plan maintained by the Company or its Affiliate, as applicable, or, if there is no such plan, a physical or mental condition that prevents the grantee from performing the essential functions of the grantee’s position (with or without reasonable accommodation) for a period of six consecutive months. The existence of a disability shall be determined by the Administrator.

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(e)            Death.

 

(i)          Termination of Employment as a Result of Grantee’s Death. If a grantee incurs a termination of employment or consultancy/service relationship or leaves the Board as the result of his or her death, then any outstanding option or stock appreciation right shall, to the extent exercisable at the time of such death, remain exercisable for a period of one year after such death; provided that in no event may such option or stock appreciation right be exercised following the original expiration date of the Award.

 

  (ii)          Restrictions on Exercise Following Death. Any such exercise of an Award following a grantee’s death shall be made only by the grantee’s executor or administrator or other duly appointed representative reasonably acceptable to the Administrator, unless the grantee’s will specifically disposes of such Award, in which case such exercise shall be made only by the recipient of such specific disposition. If a grantee’s personal representative or the recipient of a specific disposition under the grantee’s will shall be entitled to exercise any Award pursuant to the preceding sentence, such representative or recipient shall be bound by all the terms and conditions of the Plan and the applicable Award Agreement which would have applied to the grantee.

 

(f)          Administrator Discretion. The Administrator may, in writing, may waive or modify the application of the foregoing provisions of this Section 2.4.

 

2.5.          Transferability of Options and Stock Appreciation Rights

 

Except as otherwise provided in an applicable Award Agreement evidencing an option or stock appreciation right, during the lifetime of a grantee, each such Award granted to a grantee shall be exercisable only by the grantee, and no such Award shall be assignable or transferable other than by will or by the laws of descent and distribution. The Administrator may, in any applicable Award Agreement evidencing an option or stock appreciation right, permit a grantee to transfer all or some of the options or stock appreciation rights to (a) the grantee’s spouse, children or grandchildren (“Immediate Family Members”), (b) a trust or trusts for the exclusive benefit of such Immediate Family Members or (c) other parties approved by the Administrator. Following any such transfer, any transferred options and stock appreciation rights shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer.

 

2.6.         Grant of Restricted Stock

 

(a)          Restricted Stock Grants. The Administrator may grant restricted shares of Common Stock to such Key Persons, in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions as the Administrator shall determine, subject to the provisions of the Plan. A grantee of a restricted stock Award shall have no rights with respect to such Award unless such grantee accepts the Award within such period as the Administrator shall specify by accepting delivery of a restricted stock Award Agreement in such form as the Administrator shall determine and, in the event the restricted shares are newly issued by the Company, makes payment to the Company or its Exchange Agent by certified or official bank check (or the equivalent thereof acceptable to the Administrator) in an amount at least equal to the par value of the shares covered by the Award (which payment may be waived at the time of grant of the restricted stock Award to the extent the restricted shares granted hereunder are otherwise deemed to be fully paid and non-assessable).

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(b)          Issuance of Stock Certificate. Promptly after a grantee accepts a restricted stock Award in accordance with Section 2.6(a), subject to Sections 3.2, 3.4 and 3.13, the Company or its Exchange Agent shall issue to the grantee a stock certificate or stock certificates for the shares of Common Stock covered by the Award or shall establish an account evidencing ownership of the stock in uncertificated form. Upon the issuance of such stock certificates, or establishment of such account, the grantee shall have the rights of a stockholder with respect to the restricted stock, subject to: (i) the nontransferability restrictions and forfeiture provision described in the Plan (including paragraphs (d), (e) and (f) of this Section 2.6); (ii) in the Administrator’s sole discretion, a requirement, as set forth in the Award Agreement, that any dividends paid on such shares shall be held in escrow and, unless otherwise determined by the Administrator, shall remain forfeitable until all restrictions on such shares have lapsed; and (iii) any other restrictions and conditions contained in the applicable Award Agreement.

 

(c)          Custody of Stock Certificate. Unless the Administrator shall otherwise determine, any stock certificates issued evidencing shares of restricted stock shall remain in the possession of the Company until such shares are free of any restrictions specified in the applicable Award Agreement. The Administrator may direct that such stock certificates bear a legend setting forth the applicable restrictions on transferability.

 

(d)          Nontransferability. Shares of restricted stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of prior to the lapsing of all restrictions thereon, except as otherwise specifically provided in this Plan or the applicable Award Agreement. The Administrator at the time of grant shall specify the date or dates (which may depend upon or be related to the attainment of performance goals and other conditions) on which the nontransferability of the restricted stock shall lapse.

 

(e)          Consequence of Termination of Employment. Unless otherwise set forth in the applicable Award Agreement, (i) a grantee’s termination of employment or consultancy/service relationship or dismissal from the Board for any reason other than death or disability (as defined in Section 2.4(d)) shall cause the immediate forfeiture of all shares of restricted stock that have not yet vested as of the date of such termination of employment or consultancy/service relationship or dismissal from the Board and (ii) if a grantee incurs a termination of employment or consultancy/service relationship or dismissal from the Board as the result of his or her death or disability, all shares of restricted stock that have not yet vested as of the date of such termination or departure from the Board shall immediately vest as of such date. Unless otherwise determined by the Administrator, all dividends paid on shares forfeited under this Section 2.6(e) that have not theretofore been directly remitted to the grantee shall also be forfeited, whether by termination of any escrow arrangement under which such dividends are held or otherwise. The Administrator may, in writing, waive or modify the application of the foregoing provisions of this Section 2.6(e).

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(f)          Special conditions for Shares issued during calendar year 2015. Unless otherwise set forth in the applicable Award Agreement , the shares of restricted stock that will be issued in calendar year 2015, shall vest on the twelfth month anniversary following the Board’s approval of the Plan subject to the employee remaining employed in the Company or its subsidiaries. A grantee’s voluntarily departure from the Company or its subsidiaries during the twelve months following the Board’s approval of the Plan shall cause the immediate forfeiture of the Shares

 

2.7.         Grant of Restricted Stock Units

 

(a)          Restricted Stock Unit Grants. The Administrator may grant restricted stock units to such Key Persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, subject to the provisions of the Plan. A restricted stock unit granted under the Plan shall confer upon the grantee a right to receive from the Company, conditioned upon the occurrence of such vesting event as shall be determined by the Administrator and specified in the Award Agreement, the number of such grantee’s restricted stock units that vest upon the occurrence of such vesting event multiplied by the Fair Market Value of a share of Common Stock on the date of vesting. Payment upon vesting of a restricted stock unit shall be in cash or in shares of Common Stock (valued at their Fair Market Value on the date of vesting) or both, all as the Administrator shall determine, and such payments shall be made to the grantee at such time as provided in the Award Agreement, which shall be (i) if Section 409A of the Code is applicable to the grantee, within the period required by Section 409A such that it qualifies as a “short-term deferral” pursuant to Section 409A and the Treasury Regulations issued thereunder, unless the Administrator shall provide for deferral of the Award in compliance with Section 409A, (ii) if Section 457A of the Code is applicable to the grantee, within the period required by Section 457A(d)(3)(B) such that it qualifies for the exemption thereunder, or (iii) if Sections 409A and 457A of the Code are not applicable to the grantee, at such time as determined by the Administrator.

 

(b)          Dividend Equivalents. The Administrator may include in any Award Agreement with respect to a restricted stock unit a dividend equivalent right entitling the grantee to receive amounts equal to the ordinary dividends that would be paid, during the time such Award is outstanding and unvested, on the shares of Common Stock underlying such Award if such shares were then outstanding. In the event such a provision is included in a Award Agreement, the Administrator shall determine whether such payments shall be (i) paid to the holder of the Award, as specified in the Award Agreement, either (A) at the same time as the underlying dividends are paid, regardless of the fact that the restricted stock unit has not theretofore vested, or (B) at the time at which the Award’s vesting event occurs, conditioned upon the occurrence of the vesting event, (ii) made in cash, shares of Common Stock or other property and (iii) subject to such other vesting and forfeiture provisions and other terms and conditions as the Administrator shall deem appropriate and as shall set forth in the Award Agreement.

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(c)          Consequence of Termination of Employment. Unless otherwise set forth in the applicable Award Agreement, (i) a grantee’s termination of employment or consultancy/service relationship or dismissal from the Board for any reason other than death or disability (as defined in Section 2.4(d)) shall cause the immediate forfeiture of all restricted stock units that have not yet vested as of the date of such termination of employment or consultancy/service relationship or dismissal from the Board and (ii) if a grantee incurs a termination of employment or consultancy/service relationship or dismissal from the Board as the result of his or her death or disability, all restricted stock units that have not yet vested as of the date of such termination or departure from the Board shall immediately vest as of such date. Unless otherwise determined by the Administrator, any dividend equivalent rights on any restricted stock units forfeited under this Section 2.7(c) that have not theretofore been directly remitted to the grantee shall also be forfeited, whether by termination of any escrow arrangement under which such dividends are held or otherwise. The Administrator may, in writing, waive or modify the application of the foregoing provisions of this Section 2.7(c).

 

(d)          No Stockholder Rights. No grantee of a restricted stock unit shall have any of the rights of a stockholder of the Company with respect to such Award unless and until a stock certificate is issued with respect to such Award upon the vesting of such Award (it being understood that the Administrator shall determine whether to pay any vested restricted stock unit in the form of cash or Company shares or both), which issuance shall be subject to Sections 3.2, 3.4 and 3.13. Except as otherwise provided in Section 1.5(c), no adjustment to any restricted stock unit shall be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such stock certificate, if any, is issued.

 

(e)          Transferability of Restricted Stock Units. Except as otherwise provided in an applicable Award Agreement evidencing a restricted stock unit, no restricted stock unit granted under the Plan shall be assignable or transferable. The Administrator may, in any applicable Award Agreement evidencing a restricted stock unit, permit a grantee to transfer all or some of the restricted stock units to (i) the grantee’s Immediate Family Members, (ii) a trust or trusts for the exclusive benefit of such Immediate Family Members or (iii) other parties approved by the Administrator. Following any such transfer, any transferred restricted stock units shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer.

 

2.8.          Grant of Unrestricted Stock

 

The Administrator may grant (or sell at a purchase price at least equal to par value) shares of Common Stock free of restrictions under the Plan to such Key Persons and in such amounts and subject to such forfeiture provisions as the Administrator shall determine. Shares may be thus granted or sold in respect of past services or other valid consideration.

 

 

ARTICLE III.

 Miscellaneous

 

3.1.         Amendment of the Plan; Modification of Awards

 

(a)          Amendment of the Plan. The Board may from time to time suspend, discontinue, revise or amend the Plan in any respect whatsoever, except that no such amendment shall materially impair any rights or materially increase any obligations under any Award theretofore made under the Plan without the consent of the grantee (or, upon the grantee’s death, the Person having the right to exercise the Award). For purposes of this Section 3.1, any action of the Board or the Administrator that in any way alters or affects the tax treatment of any Award shall not be considered to materially impair any rights of any grantee.

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(b)          Stockholder Approval Requirement. If required by applicable rules or regulations of a national securities exchange or the SEC, the Company shall obtain stockholder approval with respect to any amendment to the Plan that (i) expands the types of Awards available under the Plan, (ii) materially increases the number of shares which may be issued under the Plan, except as permitted pursuant to Section 1.5(c), (iii) materially increases the benefits to participants under the Plan, including any material change to (A) permit, or that has the effect of, a “re-pricing” of any outstanding Award, (B) reduce the price at which shares or options to purchase shares may be offered or (C) extends the duration of the Plan or (iv) materially expands the class of Persons eligible to receive Awards under the Plan.

 

(c)          Modification of Awards. The Administrator may cancel any Award under the Plan. The Administrator also may amend any outstanding Award Agreement, including, without limitation, by amendment which would: (i) accelerate the time or times at which the Award becomes unrestricted, vested or may be exercised; (ii) waive or amend any goals, restrictions or conditions set forth in the Award Agreement; or (iii) waive or amend the operation of Section 2.4, 2.6(e) or 2.7(c) with respect to the termination of the Award upon termination of employment or consultancy/service relationship or dismissal from the Board; provided, however, that no such amendment shall be made without shareholder approval if such approval is necessary to comply with any tax or regulatory requirement applicable to the Award. However, any such cancellation or amendment that materially impairs the rights or materially increases the obligations of a grantee under an outstanding Award shall be made only with the consent of the grantee (or, upon the grantee’s death, the Person having the right to exercise the Award). In making any modification to an Award (e.g., an amendment resulting in a direct or indirect reduction in the Exercise Price or a waiver or modification under Section 2.4(f), 2.6(e) or 2.7(c)), the Administrator may consider the implications under Sections 409A and 457A of the Code from such modification.

 

3.2.         Consent Requirement

 

(a)          No Plan Action Without Required Consent. If the Administrator shall at any time determine that any Consent (as defined below) is necessary or desirable as a condition of, or in connection with, the granting of any Award under the Plan, the issuance or purchase of shares or other rights thereunder, or the taking of any other action thereunder (each such action being hereinafter referred to as a “Plan Action”), then such Plan Action shall not be taken, in whole or in part, unless and until such Consent shall have been effected or obtained to the full satisfaction of the Administrator.

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(b)          Consent Defined. The term “Consent” as used herein with respect to any Plan Action means (i) any and all listings, registrations or qualifications in respect thereof upon any securities exchange or under any federal, state or local law, rule or regulation, (ii) any and all written agreements and representations by the grantee with respect to the disposition of shares, or with respect to any other matter, which the Administrator shall deem necessary or desirable to comply with the terms of any such listing, registration or qualification or to obtain an exemption from the requirement that any such listing, qualification or registration be made and (iii) any and all consents, clearances and approvals in respect of a Plan Action by any governmental or other regulatory bodies.

 

3.3.         Nonassignability

 

Except as provided in Section 2.4(e), 2.5, 2.6(d) or 2.7(e), (a) no Award or right granted to any Person under the Plan or under any Award Agreement shall be assignable or transferable other than by will or by the laws of descent and distribution and (b) all rights granted under the Plan or any Award Agreement shall be exercisable during the life of the grantee only by the grantee or the grantee’s legal representative or the grantee’s permissible successors or assigns (as authorized and determined by the Administrator). All terms and conditions of the Plan and the applicable Award Agreements will be binding upon any permitted successors or assigns.

 

3.4.         Taxes

 

(a)          Withholding. A grantee or other Award holder under the Plan shall be required to pay, in cash, to the Company, and the Company and Affiliates shall have the right and are hereby authorized to withhold from any Award, from any payment due or transfer made under any Award or under the Plan or from any compensation or other amount owing to such grantee or other Award holder, the amount of any applicable withholding taxes in respect of an Award, its grant, its exercise, its vesting, or any payment or transfer under an Award or under the Plan, and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for payment of such taxes. Whenever shares of Common Stock are to be delivered pursuant to an Award under the Plan, with the approval of the Administrator, which the Administrator shall have sole discretion whether or not to give, the grantee may satisfy the foregoing condition by electing to have the Company withhold from delivery shares having a value equal to the amount of minimum tax required to be withheld. Such shares shall be valued at their Fair Market Value as of the date on which the amount of tax to be withheld is determined. Fractional share amounts shall be settled in cash. Such a withholding election may be made with respect to all or any portion of the shares to be delivered pursuant to an Award as may be approved by the Administrator in its sole discretion.

 

(b)          Liability for Taxes. Grantees and holders of Awards are solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with Awards (including, without limitation, any taxes arising under Sections 409A and 457A of the Code) and the Company shall not have any obligation to indemnify or otherwise hold any such Person harmless from any or all of such taxes. The Administrator shall have the discretion to organize any deferral program, to require deferral election forms, and to grant or, notwithstanding anything to the contrary in the Plan or any Award Agreement, to unilaterally modify any Award in a manner that (i) conforms with the requirements of Sections 409A and 457A of the Code (to the extent applicable), (ii) voids any participant election to the extent it would violate Section 409A or 457A of the Code (to the extent applicable) and (iii) for any distribution event or election that could be expected to violate Section 409A or 457A of the Code, make the distribution only upon the earliest of the first to occur of a “permissible distribution event” within the meaning of Section 409A of the Code or a distribution event that the participant elects in accordance with Section 409A of the Code. The Administrator shall have the sole discretion to interpret the requirements of the Code, including, without limitation, Sections 409A and 457A, for purposes of the Plan and all Awards.

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3.5.         Change in Control

 

(a)          Change in Control Defined. For purposes of the Plan, “Change in Control” shall mean the occurrence of any of the following:

 

(i)          any “person” (as defined in Section 13(d)(3) of the 1934 Act), corporation or other entity (other than (A) the Company, (B) any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, or (C) any company or other entity owned, directly or indirectly, by the holders of the voting stock of the Company in substantially the same proportions as their ownership of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company) acquires “beneficial ownership” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of more than 50% of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company;

 

(ii)          the sale of all or substantially all the Company’s assets in one or more related transactions to a Person or group of Persons, other than such a sale (A) to a Subsidiary which does not involve a change in the equity holdings of the Company or (B) to an entity which has acquired all or substantially all the Company’s assets (any such entity described in clause (A) or (B), the “Acquiring Entity”) if, immediately following such sale, 50% or more of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Acquiring Entity (or, if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of more than 50% of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Acquiring Entity) is beneficially owned by the holders of the voting stock of the Company, and such voting power among the persons who were holders of the voting stock of the Company immediately prior to such sale is, immediately following such sale, held in substantially the same proportions as the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company immediately prior to such sale;

 

(iii)          any merger, consolidation, reorganization or similar event of the Company or any Subsidiary as a result of which the holders of the voting stock of the Company immediately prior to such merger, consolidation, reorganization or similar event do not directly or indirectly hold 50% or more of the aggregate voting power of the capital stock of the surviving entity (or, if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of more than 50% of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the surviving entity) and such voting power among the Persons who were holders of the voting stock of the Company immediately prior to such sale is, immediately following such sale, held in substantially the same proportions as the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company immediately prior to such sale;

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(iv)        the approval by the Company’s stockholders of a plan of complete liquidation or dissolution of the Company; or

 

(v)         during any period of 24 consecutive calendar months, individuals:

 

(A)      who were directors of the Company on the first day of such period, or

 

(B)       whose election or nomination for election to the Board was recommended or approved by at least a majority of the directors then still in office who were directors of the Company on the first day of such period, or whose election or nomination for election were so approved,

 

shall cease to constitute a majority of the Board.

 

Notwithstanding the foregoing, for each Award subject to Section 409A of the Code, a Change in Control shall be deemed to occur under this Plan with respect to such Award only if a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company shall also be deemed to have occurred under Section 409A of the Code, provided that such limitation shall apply to such Award only to the extent necessary to avoid adverse tax effects under Section 409A of the Code.

 

(b)          Effect of a Change in Control. Unless the Administrator provides otherwise in a Award Agreement, upon the occurrence of a Change in Control:

 

(i)          notwithstanding any other provision of this Plan, any Award then outstanding shall become fully vested and any Award in the form of an option or stock appreciation right shall be immediately exercisable;

 

(ii)         to the extent permitted by law and not otherwise limited by the terms of the Plan, the Administrator may amend any Award Agreement in such manner as it deems appropriate;

 

(iii)        a grantee who incurs a termination of employment or consultancy/service relationship or dismissal from the Board for any reason, other than a termination or dismissal “for Cause”, concurrent with or within one year following the Change in Control may exercise any outstanding option or stock appreciation right, but only to the extent that the grantee was entitled to exercise the Award on the date of his or her termination of employment or consultancy/service relationship or dismissal from the Board, until the earlier of (A) the original expiration date of the Award and (B) the later of (x) the date provided for under the terms of Section 2.4 without reference to this Section 3.5(b)(iii) and (y) the first anniversary of the grantee’s termination of employment or consultancy/service relationship or dismissal from the Board.

 

(c)          Miscellaneous. Whenever deemed appropriate by the Administrator, any action referred to in paragraph (b)(ii) of this Section 3.5 may be made conditional upon the consummation of the applicable Change in Control transaction. For purposes of the Plan and any Award Agreement granted hereunder, the term “Company” shall include any successor to Star Bulk Carriers Corp.

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3.6.         Operation and Conduct of Business

 

Nothing in the Plan or any Award Agreement shall be construed as limiting or preventing the Company or any of its Affiliates from taking any action with respect to the operation and conduct of their business that they deem appropriate or in their best interests, including any or all adjustments, recapitalizations, reorganizations, exchanges or other changes in the capital structure of the Company or any of its Affiliates, any merger or consolidation of the Company or any of its Affiliates, any issuance of Company shares or other securities or subscription rights, any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Stock or other securities or rights thereof, any dissolution or liquidation of the Company or any of its Affiliates, any sale or transfer of all or any part of the assets or business of the Company or any of its Affiliates, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

3.7.         No Rights to Awards

 

No Key Person or other Person shall have any claim to be granted any Award under the Plan.

 

3.8.         Right of Discharge Reserved

 

Nothing in the Plan or in any Award Agreement shall confer upon any grantee the right to continue his or her employment with the Company or any of its Affiliates, his or her consultancy/service relationship with the Company or any of its Affiliates, or his or her position as a director of the Company or any of its Affiliates, or affect any right that the Company or any of its Affiliates may have to terminate such employment or consultancy/service relationship or service as a director.

 

3.9.         Non-Uniform Determinations

 

The Administrator’s determinations and the treatment of Key Persons and grantees and their beneficiaries under the Plan need not be uniform and may be made and determined by the Administrator selectively among Persons who receive, or who are eligible to receive, Awards under the Plan (whether or not such Persons are similarly situated). Without limiting the generality of the foregoing, the Administrator shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Award Agreements, as to (a) the Persons to receive Awards under the Plan, (b) the types of Awards granted under the Plan, (c) the number of shares to be covered by, or with respect to which payments, rights or other matters are to be calculated with respect to, Awards and (d) the terms and conditions of Awards.

 

3.10.       Other Payments or Awards

 

Nothing contained in the Plan shall be deemed in any way to limit or restrict the Company from making any award or payment to any Person under any other plan, arrangement or understanding, whether now existing or hereafter in effect.

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3.11.        Headings

 

Any section, subsection, paragraph or other subdivision headings contained herein are for the purpose of convenience only and are not intended to expand, limit or otherwise define the contents of such subdivisions.

 

3.12.       Effective Date and Term of Plan

 

(a)          Adoption; Stockholder Approval. The Plan was adopted by the Board on February 22, 2017 The Board may, but need not, make the granting of any Awards under the Plan subject to the approval of the Company’s stockholders.

 

(b)          Termination of Plan. The Board may terminate the Plan at any time. All Awards made under the Plan prior to its termination shall remain in effect until such Awards have been satisfied or terminated in accordance with the terms and provisions of the Plan and the applicable Award Agreements. No Awards may be granted under the Plan following the tenth anniversary of the date on which the Plan was adopted by the Board.

 

3.13.       Restriction on Issuance of Stock Pursuant to Awards

 

The Company shall not permit any shares of Common Stock to be issued pursuant to Awards granted under the Plan unless such shares of Common Stock are fully paid and non-assessable under applicable law. Notwithstanding anything to the contrary in the Plan or any Award Agreement, at the time of the exercise of any Award, at the time of vesting of any Award, at the time of payment of shares of Common Stock in exchange for, or in cancellation of, any Award, or at the time of grant of any unrestricted shares under the Plan, the Company and the Administrator may, if either shall deem it necessary or advisable for any reason, require the holder of an Award (a) to represent in writing to the Company that it is the Award holder’s then-intention to acquire the shares with respect to which the Award is granted for investment and not with a view to the distribution thereof or (b) to postpone the date of exercise until such time as the Company has available for delivery to the Award holder a prospectus meeting the requirements of all applicable securities laws; and no shares shall be issued or transferred in connection with any Award unless and until all legal requirements applicable to the issuance or transfer of such shares have been complied with to the satisfaction of the Company and the Administrator. The Company and the Administrator shall have the right to condition any issuance of shares to any Award holder hereunder on such Person’s undertaking in writing to comply with such restrictions on the subsequent transfer of such shares as the Company or the Administrator shall deem necessary or advisable as a result of any applicable law, regulation or official interpretation thereof, and all share certificates delivered under the Plan shall be subject to such stop transfer orders and other restrictions as the Company or the Administrator may deem advisable under the Plan, the applicable Award Agreement or the rules, regulations and other requirements of the SEC, any stock exchange upon which such shares are listed, and any applicable securities or other laws, and certificates representing such shares may contain a legend to reflect any such restrictions. The Administrator may refuse to issue or transfer any shares or other consideration under an Award if it determines that the issuance or transfer of such shares or other consideration might violate any applicable law or regulation or entitle the Company to recover the same under Section 16(b) of the 1934 Act, and any payment tendered to the Company by a grantee or other Award holder in connection with the exercise of such Award shall be promptly refunded to the relevant grantee or other Award holder. Without limiting the generality of the foregoing, no Award granted under the Plan shall be construed as an offer to sell securities of the Company, and no such offer shall be outstanding, unless and until the Administrator has determined that any such offer, if made, would be in compliance with all applicable requirements of any applicable securities laws.

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3.14.       Requirement of Notification of Election Under Section 83(b) of the Code

 

If an Award recipient, in connection with the acquisition of Company shares under the Plan, makes an election under Section 83(b) of the Code (to include in gross income in the year of transfer the amounts specified in Section 83(b) of the Code), the grantee shall notify the Administrator of such election within ten days of filing notice of the election with the U.S. Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under Section 83(b) of the Code.

 

3.15.       Severability

 

If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Administrator, such provision shall be construed or deemed amended to conform to the applicable laws or, if it cannot be construed or deemed amended without, in the determination of the Administrator, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

 

3.16.       Sections 409A and 457A

 

To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Sections 409A and 457A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of the Plan or any applicable Award Agreement to the contrary, in the event that the Administrator determines that any Award may be subject to Section 409A or 457A of the Code, the Administrator may adopt such amendments to the Plan and the applicable Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (i) exempt the Plan and Award from Sections 409A and 457A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (ii) comply with the requirements of Sections 409A and 457A of the Code and related Department of Treasury guidance and thereby avoid the application of penalty taxes under Sections 409A and 457A of the Code.

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3.17.       Forfeiture; Clawback

 

The Administrator may, in its sole discretion, specify in the applicable Award Agreement that any realized gain with respect to options or stock appreciation rights and any realized value with respect to other Awards shall be subject to forfeiture or clawback, in the event of (a) a grantee’s breach of any non-competition, non-solicitation, confidentiality or other restrictive covenants with respect to the Company or any of its Affiliates or (ii) a financial restatement that reduces the amount of bonus or incentive compensation previously awarded to a grantee that would have been earned had results been properly reported.

 

3.18.       No Trust or Fund Created

 

Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any of its Affiliates and an Award recipient or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any of its Affiliates pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company or its Affiliates.

 

3.19.       No Fractional Shares

 

No fractional shares shall be issued or delivered pursuant to the Plan or any Award, and the Administrator shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional shares or whether such fractional shares or any rights thereto shall be canceled, terminated, or otherwise eliminated.

 

3.20.       Governing Law

 

The Plan will be construed and administered in accordance with the laws of the State of New York, without giving effect to principles of conflict of laws.

 

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