Document:

Exhibit

Exhibit 10.13

CHANGE OF CONTROL AGREEMENT

This Change of Control Agreement (the “Agreement”) between Gulf Island Fabrication, Inc., a Louisiana corporation (the “Company”), and Westley S. Stockton (the “Executive”) is dated effective December 12, 2018 (the “Agreement Date”).  
Article I 
DEFINITIONS
Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the contrary.  The singular pronoun shall include the plural where the context so indicates.  
1.1    “Accrued Salary” has the meaning provided in Section 2.3(a)(i).  
1.2    “Affiliate” of any Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such Person.  For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person or entity, whether through the ownership of voting securities or otherwise; and the terms “controlling” and “controlled” shall have correlative meanings.
1.3    “Base Salary” has the meaning provided in Section 2.2(a).  
1.4    “Beneficial Owner” (and variants thereof) with respect to a security, means a Person who, directly or indirectly (through any contract, understanding, relationship, or otherwise) has or shares (a) the power to vote, or direct of the voting of, the security, and (b) the power to dispose of, or to direct the disposition of, the security.  
1.5    “Board” means the Board of Directors of the Company.
1.6    “Business Combination” means the consummation of a reorganization, merger or consolidation (including a merger or consolidation of the Company or any direct or indirect subsidiary of the Company), or sale or other disposition of all or substantially all of the assets of the Company.
1.7    “Cause.”
(a)    “Cause” means:
(i)    the Executive’s willful and continued failure to perform substantially the Executive’s duties with the Company or its Affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Executive by the Board, which specifically identifies the manner in which the Board believes that the Executive has not substantially performed the Executive’s duties;

Exhibit 10.13

(ii)    the willful engaging in conduct that is demonstrably and materially injurious to the Company or any of its Affiliates, monetarily or otherwise;
(iii)    unauthorized acts or omissions by the Executive that could reasonably be expected to cause material financial harm to the Company or materially disrupt Company operations;
(iv)    commission by the Executive of an act of dishonesty (even if not a crime) resulting in the enrichment of the Executive at the expense of the Company;
(v)    the Executive’s knowing falsification or knowing attempted falsification of financial records of the Company in violation of SEC Rule 13b2-1; or
(vi)    the final conviction of the Executive or an entering of a guilty plea or a plea of no contest by the Executive to a felony.  
(b)    For purposes of subparagraphs (a)(i) and (a)(ii) above, no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interest of the Company or its Affiliates.  
(c)    Any act, or failure to act, based on authority given pursuant to a resolution duly adopted by the Board, upon the instructions of a senior officer of the company, or based upon the advice of counsel for the Company or its Affiliates shall be conclusively determined to be done, or omitted to be done, by the Executive in good faith and in the best interest of the Company or its Affiliates.  
(d)    The termination of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to the Executive and the Executive, together with counsel, is given an opportunity to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive is guilty of conduct described in subparagraph (a) above, and specifying the particulars of such conduct.  
1.8    “Change of Control” means 
(a)    The acquisition by any Person of Beneficial Ownership of 30% or more of the outstanding shares of the Common Stock or 30% or more of the combined voting power of the Company’s then-outstanding securities entitled to vote generally in the election of directors; provide, however, that for purposes of this Section 1.8(a), the following acquisitions shall not constitute a Change of Control:  
(i)    any acquisition (other than a Business Combination which constitutes a Change of Control under Section 1.8(c)) of Common Stock directly from the Company,
(ii)    any acquisition of Common Stock by the Company,

Exhibit 10.13

(iii)    any acquisition of Common Stock by any employee benefit plan (or related trust) sponsored or maintained by the Company or its Affiliates, or
(b)    individuals who, as of the Agreement Date, constituted the Incumbent Board, cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to such date whose election or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board, unless such individual’s initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Incumbent Board; or
(c)    a Business Combination, provided, however, that in no such case shall any such transaction constitute a Change of Control if immediately following such Business Combination:
(i)    the individuals and entities who were the Beneficial Owners of the Company’s outstanding Common Stock and the Company’s voting securities entitled to vote generally in the election of directors immediately prior to such Business Combination have direct or indirect Beneficial Ownership, respectively, of more than 50% of the then outstanding shares of Common Stock, and more than 50% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the Post-Transaction Corporation; 
(ii)    except to the extent that such ownership existed prior to the Business Combination, no Person (excluding the Post-Transaction Corporation and any employee benefit plan or related trust of either the Company, the Post-Transaction Corporation, or any Affiliates of either) beneficially owns, directly or indirectly, 25% or more of the then outstanding shares of common stock of the corporation resulting from such Business Combination or 25% or more of the combined voting power of the then outstanding voting securities of such corporation; and
(iii)    at least a majority of the members of the board of directors of the Post-Transaction Corporation were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination; or
(d)    approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.  
1.9    “Code” means the Internal Revenue Code of 1986, as amended.
1.10    “Common Stock” means the common stock, no par value per share, of the Company.  
1.11    “Company” means the Company as defined above and any successor to or assignee of (whether direct or indirect, by purchase, merger, consolidation, or otherwise) all or substantially all of the assets of the Company.  

Exhibit 10.13

1.12    “Confidential Information” means any information, knowledge, or data of any nature and in any form (including information that is electronically transmitted or stored on any form of magnetic or electronic storage media) relating to the past, current, or prospective business or operations of the Company and its Affiliates, that at the time or times concerned is not generally known to persons engaged in businesses similar to those conducted or contemplated by the Company and its Affiliates (other than information known by such persons through a violation of an obligation of confidentiality to the Company), whether produced by the Company and its Affiliates or any of their consultants, agents, or independent contractors or by Executive, and whether or not marked confidential, including without limitation information relating to the Company’s or its Affiliates’ products and services, business plans, business acquisitions, processes, product or service research and development ideas, methods or techniques, training methods and materials, and other operational methods or techniques, quality assurance procedures or standards, operating procedures, files, plans, specifications, proposals, drawings, charts, graphs, support data, trade secrets, supplier lists, supplier information, purchasing methods or practices, distribution and selling activities, consultants’ reports, marketing and engineering or other technical studies, maintenance records, employment or personnel data, marketing data, strategies or techniques, financial reports, budgets, projections, cost analyses, price lists, formulae and analyses, employee lists, customer records, customer lists, customer source lists, proprietary computer software, and internal notes and memoranda relating to any of the foregoing.
1.13    “Continuation Period” has the meaning provided in Section 2.3(c)(iii).  
1.14    “Disability” means a condition that would entitle the Executive to receive benefits under the Company’s long-term disability insurance policy in effect at the time either because he is Totally Disabled or Partially Disabled, as such terms are defined in the Company’s policy in effect as of the Agreement Date or as similar terms are defined in any successor policy.  If the Company has no long-term disability plan in effect, “Disability” shall occur if (a) the Executive is rendered incapable because of physical or mental illness of satisfactorily discharging his duties and responsibilities to the Company for a period of 90 consecutive days, (b) a duly qualified physician chosen by the Company and acceptable to the Executive or his legal representatives so certifies in writing, and (c) the Board determines that the Executive has become disabled.  
1.15    “Employment Term” has the meaning provided in Section 2.1(a).
1.16    “Expiration Date” has the meaning provided in Section 2.1(a).
1.17    “Good Reason” means any action or inaction during the Employment Term that constitutes a material negative change in the service relationship between the Executive and the Company and a material breach by the Company of its obligations under the terms of this Agreement, provided that the Executive shall have provided written notice to the Company within 90 days of the initial existence of the condition described in this Section 1.17 and such event or condition continues uncured for a period of 30 days after written notice thereof is given by the Executive to the Company.  A termination by the Executive with Good Reason shall constitute an involuntary termination for purposes of Section 409A of the Internal Revenue Code of 1986, as amended.

Exhibit 10.13

1.18    “Immediate Family Members” means the spouse and the natural or adopted children or grandchildren of a specified individual.  
1.19    “Incumbent Board” means individuals who, as of a specified date, constituted the Board of Directors of the Company.  
1.20    “Person” means a natural person, company, limited partnership, general partnership, limited liability company or partnership, joint venture, association, trust, bank, trust company, land trust, business trust or other organization, whether or not a legal entity, and a government or agency or political subdivision thereof.  
1.21    “Post-Transaction Corporation.”  
(a)    Unless a Change of Control includes a Business Combination, Post-Transaction Corporation means the Company after the Change of Control.  
(b)    If a Change of Control includes a Business Combination, Post-Transaction Corporation means the corporation resulting from the Business Combination unless, as a result of such Business Combination, an ultimate parent corporation controls the Company or all or substantially all of the Company’s assets either directly or indirectly, in which case, Post-Transaction Corporation shall mean such ultimate parent corporation.
1.22    “Pro Rata Bonus” has the meaning provided in Section 2.3(a)(ii).  
1.23    “Section 409A” means Section 409A of the Code, as amended, and the regulations and guidance issued thereunder.  
1.24    “Termination Date” means, if Executive’s status as an officer and employee is terminated (a) by reason of Executive’s death, the date of Executive’s death; (b) by reason of Disability, the date on which termination of Executive’s status as an officer and employee becomes effective due to Disability; (c) by the Company other than by reason of death or Disability, the date of delivery of the notice of termination or any later date specified in the notice of termination, which date will not be more than 30 days after the giving of the notice; or (d) by the Executive other than by reason of death, the date of delivery of the notice of termination or any later date specified in the notice of termination, which date will not be more than 30 days after the giving of the notice.
Article II     
CHANGE OF CONTROL BENEFIT
2.1    Employment Term and Capacity after Change of Control.  
(a)    This Agreement shall commence on the Agreement Date and continue in effect through February 28, 2021 (the “Expiration Date”).  If the Executive continues to serve as an officer of the Company and a Change of Control occurs on or before the Expiration Date, then the Executive’s employment term (the “Employment Term”) shall continue for a period of eighteen months following the Change of Control, subject to any earlier termination of Executive’s status as an officer and employee pursuant to this Agreement.  

Exhibit 10.13

(b)    After a Change of Control and during the Employment Term, (i) the Executive’s position (including status, offices, titles, and reporting requirements), authority, duties, and responsibilities shall be at least commensurate in all material respects with the most significant of those held, exercised, and assigned at any time during the 120-day period immediately preceding the Change of Control; and (ii) the Executive’s services shall be performed at the location where the Executive was employed immediately preceding the Change of Control or any office or location less than 50 miles from such location.  Executive’s position, authority, duties, and responsibilities after a Change of Control shall not be considered commensurate in all material respects with Executive’s position, authority, duties, and responsibilities prior to a Change of Control unless after the Change of Control the Executive holds an equivalent position in the Post-Transaction Corporation.
2.2    Compensation and Benefits. During the Employment Term, the Executive shall be entitled to the following compensation and benefits:
(a)    Salary.  An annual salary (“Base Salary”) at the highest rate in effect for the Executive at any time during the 120-day period immediately preceding the Change of Control, payable to the Executive at such intervals no less frequent than the most frequent intervals in effect at any time during the 120-day period immediately preceding the Change of Control or, if more favorable to the Executive, the intervals in effect at any time after the Change of Control for other most senior executives of the Post-Transaction Corporation and its Affiliates.
(b)    Bonus.  Executive shall be entitled to participate in an annual incentive bonus program applicable to other most senior executives of the Post-Transaction Corporation and its Affiliates but in no event shall such program provide the Executive with incentive opportunities less favorable than the most favorable of those provided by the Company and its Affiliates for the Executive under the Company’s annual cash plan as in effect for Executive at any time during the 120-day period immediately preceding the Change of Control or, if more favorable to the Executive, those provided generally at any time after the Change of Control to other most senior executives of the Post-Transaction Corporation and its Affiliates.  Any such bonus shall be paid in cash no later than two and a half months following the close of the fiscal year for which it is earned.
(c)    Fringe Benefits. The Executive shall be entitled to fringe benefits (including, but not limited to, automobile allowance, air travel, and reimbursement for club membership dues) in accordance with the most favorable agreements, plans, practices, programs, and policies of the Company and its Affiliates in effect for the Executive at any time during the 120-day period immediately preceding the Change of Control or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other most senior executives of the Post-Transaction Corporation and its Affiliates.
(d)    Expenses. The Executive shall be entitled to receive prompt reimbursement for all reasonable business expenses (including food and lodging) incurred by the Executive in accordance with the most favorable agreements, policies, practices, and procedures of the Company and its Affiliates in effect for the Executive at any time during the 120-day period immediately preceding the Change of Control or, if more favorable to the Executive, as in effect generally at any 

Exhibit 10.13

time thereafter with respect to other most senior executives of the Post-Transaction Corporation and its Affiliates.
(e)    Incentive, Savings and Retirement Plans. The Executive shall be entitled to participate in all incentive, savings and retirement plans, practices, policies, and programs applicable generally to other most senior executives of the Post-Transaction Corporation and its Affiliates, but in no event shall such plans, practices, policies, and programs provide the Executive with incentive opportunities (measured with respect to both regular and special incentive opportunities, to the extent, if any, that such distinction is applicable), savings opportunities and retirement benefit opportunities, in each case, less favorable than the most favorable of those provided by the Company and its Affiliates for the Executive under any agreements, plans, practices, policies, and programs as in effect at any time during the 120-day period immediately preceding the Change of Control.
(f)    Welfare Benefit Plans. The Executive and the Executive’s family shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies, and programs provided by the Post-Transaction Corporation and its Affiliates (including, without limitation, medical, prescription, dental, disability, employee life, group life, accidental death, and travel accident insurance plans and programs) to the extent applicable generally to other most senior executives of the Post-Transaction Corporation and its Affiliates, but in no event shall such plans, practices, policies, and programs provide the Executive with benefits, in each case, less favorable than the most favorable of any agreements, plans, practices, policies and programs of the Company and its Affiliates in effect for the Executive at any time during the 120-day period immediately preceding the Change of Control.
(g)    Indemnification and Insurance. The Post-Transaction Corporation shall indemnify the Executive, to the fullest extent permitted by applicable law, for any and all claims brought against him arising out of his services during or prior to the Employment Term.  In addition, the Post-Transaction Corporation shall maintain a directors’ and officers’ insurance policy covering the Executive substantially in the form of the policy maintained by the Company and its Affiliates at any time during the 120-day period immediately preceding the Change of Control or, if more favorable to the Executive, as provided generally at any time thereafter with respect to other most senior executives of the Post-Transaction Corporation and its Affiliates.
(h)    Office and Support Staff.  The Executive shall be entitled to an office or offices of a size and with furnishings and other appointments, and to exclusive personal secretarial and other assistance, at least equal to the most favorable of the foregoing provided to the Executive by the Company and its Affiliates at any time during the 120-day period immediately preceding the Change of Control or, if more favorable to the Executive, as provided generally at any time thereafter with respect to other most senior executives of the Post-Transaction Corporation and its Affiliates.
(i)    Vacation. The Executive shall be entitled to paid vacation in accordance with the most favorable agreements, plans, policies, programs, and practices of the Company and its Affiliates as in effect for the Executive at any time during the 120-day period immediately preceding the Change of Control or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other most senior executives of the Post-Transaction Corporation and its Affiliates.

Exhibit 10.13

2.3    Obligations upon Termination After a Change of Control.
(a)    Termination as a Result of Death, Disability, or Retirement. If, after a Change of Control and during the Employment Term, (1) the Executive’s status as an officer and employee is terminated by reason of the Executive’s death, (2) the Post-Transaction Corporation terminates the Executive’s status as an officer and employee by reason of Executive’s Disability, or (3) the Executive retires and terminates his status as an officer and employee, then, subject to Section 2.3(f) and, if applicable, the six-month delay set forth in Section 2.7:
(i)    the Post-Transaction Corporation or an Affiliate will pay to the Executive or his legal representatives the Executive’s Base Salary earned through the Termination Date to the extent not previously paid (the “Accrued Salary”);
(ii)    the Post-Transaction Corporation or an Affiliate will pay to the Executive or his legal representatives the highest of a pro rata bonus in an amount determined by (1) calculating the average of the annual bonus received by the Executive in the three most recently completed fiscal years prior to the Termination Date or the Targeted Annual bonus, then (2) multiplying such bonus amount by the fraction obtained by dividing the number of days in the year through the Termination Date by 365 (the “Pro Rata Bonus”); and
(iii)    the Post-Transaction Corporation or an Affiliate will pay or deliver, as appropriate, all other benefits earned by the Executive or accrued for his benefit pursuant to any employee benefit plans maintained by the Post-Transaction Corporation or its Affiliates with respect to services rendered by the Executive prior to the Termination Date.
(b)    Termination by Company for Cause; by Executive for other than Good Reason.  If, after a Change of Control and during the Employment Term, the Executive’s status as an officer and employee is terminated by the Post-Transaction Corporation or an Affiliate for Cause, or by the Executive for other than Good Reason, the Post-Transaction Corporation or Affiliate will pay to the Executive the Accrued Salary without further obligation to the Executive other than for obligations by law and obligations for any benefits earned by the Executive or accrued for his benefit pursuant to any employee benefit plans maintained by the Post-Transaction Corporation or Affiliate with respect to services rendered by the Executive prior to the Termination Date.
(c)    Termination by Company for Reasons Other than Death, Disability, or Retirement; Termination by Executive for Good Reason.  If, after a Change of Control and during the Employment Term, (1) the Post-Transaction Corporation or an Affiliate terminates the Executive’s status as an officer and employee other than for Cause, death, or Disability, or (2) the Executive terminates his status as an officer and employee for Good Reason, then, subject to Section 2.3(f):
(i)    The Post-Transaction Corporation or an Affiliate will pay to the Executive the Accrued Salary;
(ii)    The Post-Transaction Corporation or an Affiliate will pay to the Executive in a lump sum in cash on the first business day that is more than six months after 

Exhibit 10.13

the Termination Date (A) the Pro Rata Bonus, and (B) an amount equal to 1.5 times the sum of (x) the Executive’s Base Salary in effect at the Termination Date and (y) the highest annual bonus awarded to the Executive during the three fiscal years immediately preceding the Termination Date or the Targeted Annual Figure, whichever is the highest;
(iii)    For the period commencing on the Termination Date and ending on the earlier of (A) February 26th of the first calendar year following the calendar year in which the Termination Date occurs, or (B) the date that the Executive accepts new employment (the “Continuation Period”), the Post-Transaction Corporation or an Affiliate will at its expense maintain and administer for the continued benefit of Executive all insurance and welfare benefit plans in which Executive was entitled to participate as an employee as of the Termination Date; provided that Executive’s continued participation is possible under the general terms and provisions of such plans and all applicable laws.  If the Executive is a “specified employee” governed by Section 2.7 hereof, to the extent that any benefits provided to the Executive under this Section 2.3(c)(iii) are taxable to the Executive, then, with the exception of nontaxable medical insurance benefits, the value of the aggregate amount of such taxable benefits provided to the Executive pursuant to this Section 2.3(c)(iii) during the six-month period following the Termination Date shall be limited to the amount specified by Section 402(g)(1)(B) of Code for the year in which the termination occurred.  The Executive shall pay the cost of any benefits that exceed the amount specified in the previous sentence during the six month period following the date of termination, and shall be reimbursed in full by the Company during the seventh month after the Termination Date.  The coverage and benefits (including deductibles and costs) provided under any such benefit plan in accordance with this paragraph during the Continuation Period will be no less favorable to Executive than the most favorable of such coverages and benefits as of the Termination Date.  If Executive’s participation in any such benefit plan is barred or any such benefit plan is terminated, the Post-Transaction Corporation or its Affiliate will provide Executive with benefits substantially similar or comparable in value to those Executive would otherwise have been entitled to receive under such plans.  At the end of the Continuation Period, the Executive will have the option to have assigned to him, at no cost and with no apportionment of prepaid premiums, any assignable insurance owned by the Post-Transaction Corporation or its Affiliate that relates specifically to the Executive.  To the maximum extent permitted by law, the Executive will be eligible for coverage under COBRA at the end of the Continuation Period or earlier cessation of the Post-Transaction Corporation’s obligation under the foregoing provisions of this paragraph;
(iv)    All benefits that the Executive is entitled to receive pursuant to benefit plans maintained by the Post-Transaction Corporation or an Affiliate under which benefits are calculated based upon years of service or age will be calculated by treating the Executive as having attained two additional years of age and as having provided two additional years of service as of the Termination Date; and
(v)    The Post-Transaction Corporation or an Affiliate will pay or deliver, as appropriate, all other benefits earned by the Executive or accrued for his benefit pursuant to any employee benefit plans maintained by the Post-Transaction Corporation or Affiliate with respect to services rendered by the Executive prior to the Termination Date.

Exhibit 10.13

(d)    Resignation from Board of Directors. If the Executive is a director of the Post-Transaction Corporation or any of its Affiliates and his status as an officer and employee is terminated for any reason other than death, the Executive will, if requested by the Post-Transaction Corporation, immediately resign as a director of the Post-Transaction Corporation and its Affiliates.  If such resignation is not received within 20 business days after the Executive actually receives written notice from the Post-Transaction Corporation requesting the resignation, the Executive will forfeit any right to receive any payments pursuant to this Agreement.
(e)    Nondisclosure and Proprietary Rights. The rights and obligations of the Company and the Executive contained in Article III hereof will continue to apply notwithstanding a termination following a Change of Control.
(f)    Most Favorable Benefits.  It is the intention of the parties that the terms of this Agreement provide payments and benefits to the Executive that are equivalent or more beneficial to the Executive than are otherwise available to the Executive under the terms of any applicable benefit plan or related compensation agreement.  To that end, the terms of the Agreement shall govern the payments and benefits to which the Executive shall be entitled upon the termination of the Executive’s status as an officer and employee as provided herein, except that if the terms of any applicable benefit plan or related compensation agreement provide more favorable benefits to the Executive than are provided hereunder, the terms of such plan or agreement shall control.
2.4    Excise Tax Provision.
(a)    Notwithstanding any other provisions of this Agreement, if a Change of Control occurs during the original or extended term of this Agreement, in the event that any payment or benefit received or to be received by the Executive in connection with the Change of Control of the Company or the termination of the Executive’s employment under this Agreement or any other agreement between the Company and the Executive (all such payments and benefits, including the payments and benefits under Section 2.3(c) hereof, being hereinafter called “Total Payments”) would be subject (in whole or in part), to an excise tax imposed by section 4999 of the Code (the “Excise Tax”), then the cash payments under Section 2.3(c) hereof shall first be reduced, and the noncash payments and benefits under the other sections hereof shall thereafter be reduced, to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if (A) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income and employment taxes on such reduced Total Payments) is greater than or equal to (B) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income and employment taxes on such Total Payments and the amount of Excise Tax to which the Employee would be subject in respect of such unreduced Total Payments); provided, however, that the Executive may elect to have the noncash payments and benefits hereof reduced (or eliminated) prior to any reduction of the cash payments under Section 2.3(c) hereof.
(b)    For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of section 280G(b) of the Code shall be taken into 

Exhibit 10.13

account, (ii) no portion of the Total Payments shall be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive and selected by the accounting firm (the “Auditor”) which was, immediately prior to a Change of Control or other event giving rise to a potential Excise Tax, the Company’s independent auditor, does not constitute a “parachute payment” within the meaning of section 280G(b)(2) of the Code (including by reason of section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered, within the meaning of section 280G(b)(4)(B) of the Code, in excess of the “Base Amount” (within the meaning set forth in section 280G(b)(3) of the Code) allocable to such reasonable compensation, and (iii) the value of any non cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Auditor in accordance with the principles of sections 280G(d)(3) and (4) of the Code.
(c)    At the time that payments are made under this Agreement, the Post-Transaction Corporation shall provide the Executive with a written statement setting forth the manner in which such payments were calculated and the basis for such calculations including, without limitation, any opinions or other advice the Post-Transaction Corporation has received from Tax Counsel, the Auditor, or other advisors or consultants (and any such opinions or advice which are in writing shall be attached to the statement).
2.5    Stock Options; Restricted Stock.  The foregoing benefits are intended to be in addition to the value of any options to acquire Common Stock of the Company, the exercisability of which is accelerated pursuant to the terms of any stock option agreement, any restricted stock the vesting of which is accelerated pursuant to the terms of the restricted stock agreement, and any other incentive or similar plan heretofore or hereafter adopted by the Company.
2.6    Legal Fees.  The Company agrees to pay as incurred all legal fees and expenses that the Executive may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement (including as a result of any contest by the Executive about the amount or timing of any payment pursuant to this Agreement).
2.7    Section 409A.
(a)    It is the intention of the parties that payments or benefits payable under this Agreement not be subject to the additional tax imposed pursuant to Section 409A, and the provisions of this Agreement shall be construed and administered in accordance with such intent.  To the extent any potential payments or benefits could become subject to Section 409A, the parties shall cooperate to amend this Agreement with the goal of giving the Executive the economic benefits described herein in a manner that does not result in such tax being imposed.  If the parties are unable to agree on a mutually acceptable amendment, the Company may, without the Executive’s consent and in such manner as it deems appropriate, amend or modify this Agreement or delay the payment of any amounts hereunder to the minimum extent necessary to meet the requirements of Section 409A.
(b)    No payments or benefits provided herein that are paid because of a termination of employment under circumstances described herein shall be paid, unless such 

Exhibit 10.13

termination of employment also constitutes a “separation from service” within the meaning of Section 409A.
(c)    If Executive is a “specified employee,” any payments payable as a result of Executive’s termination of employment (other than as a result of death) shall not be payable before the earlier of (i) the first business day that is more than six months after Executive’s Termination Date, (ii) the date of Executive’s death, or (iii) the date that otherwise complies with the requirements of Section 409A.  “Specified employee” shall mean the Executive if the Executive is a key employee under Treasury Regulations Section 1.409A-1(i) because of final and binding action taken by the Board or its compensation committee, or by operation of law or such regulation.
(d)    No acceleration of payments and benefits provided for in this Agreement shall be permitted, except that the Company may accelerate payment, if permitted by Section 409A, as necessary to allow the Executive to pay FICA taxes on amounts payable hereunder and additional taxes resulting from the payment of such FICA amount, or as necessary to pay taxes and penalties arising as a result of the payments provided for in this Agreement failing to meet the requirements of Section 409A.  In no event shall the Executive, directly or indirectly, designate the calendar year of payment.
(e)    To the extent that the amounts payable under this Article II are reimbursements and other separation payments described under Treasury Regulations Section 1.409A-1(b)(9)(v), such payments do not provide for the deferral of compensation.  If they do constitute deferral of compensation governed by Section 409A, they shall be deemed to be reimbursements or in-kind benefits governed by Treasury Regulations Section 1.409A-3(i)(1)(iv).  If the previous sentence applies, (i) the amount of expenses eligible for reimbursement or in-kind benefits provided during the Executive’s taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year, (ii) the reimbursement of an eligible expense must be made on or before the last day of the Executive’s taxable year following the taxable year in which the expense was incurred, and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.
Article III     
NONDISCLOSURE AND PROPRIETARY RIGHTS
3.1    Non-disclosure of Confidential Information.  Executive will hold in a fiduciary capacity for the benefit of the Company all Confidential Information obtained by Executive during Executive’s employment (whether prior to or after the Agreement Date) and will use such Confidential Information solely within the scope of his employment with and for the exclusive benefit of the Company.  For a period of two years after the Termination Date, Executive agrees (a) not to communicate, divulge or make available to any person or entity (other than the Company) any such Confidential Information, except upon the prior written authorization of the Company or as may be required by law or legal process; and (b) to deliver promptly to the Company any Confidential Information in his possession, including any duplicates thereof and any notes or other records Executive has prepared with respect thereto.  In the event that the provisions of any applicable law or the order of any court would require Executive to disclose or otherwise make available any Confidential Information, Executive will give the Company prompt prior written notice of such 

Exhibit 10.13

required disclosure and an opportunity to contest the requirement of such disclosure or apply for a protective order with respect to such Confidential Information by appropriate proceedings.
3.2    Injunctive Relief; Other Remedies.  Executive acknowledges that a breach by Executive of Section 3.1 would cause immediate and irreparable harm to the Company for which an adequate monetary remedy does not exist; hence, Executive agrees that, in the event of a breach or threatened breach by Executive of the provisions of Section 3.1, the Company will be entitled to injunctive relief restraining Executive from such violation without the necessity of proof of actual damage or the posting of any bond, except as required by non waivable, applicable law.  Nothing herein, however, will be construed as prohibiting the Company from pursuing any other remedy at law or in equity to which the Company may be entitled under applicable law in the event of a breach or threatened breach of this Agreement by Executive, including without limitation the recovery of damages and/or costs and expenses, such as reasonable attorneys’ fees, incurred by the Company as a result of any such breach or threatened breach.  In addition to the exercise of the foregoing remedies, the Company will have the right upon the occurrence of any such breach to offset the damages of such breach as determined by the Company, against any unpaid salary, bonus, commissions, or reimbursements otherwise owed to Executive.  In particular, Executive acknowledges that the payments provided under Article II are conditioned upon Executive fulfilling the nondisclosure agreements contained in this Article III.  If Executive at any time materially breaches nondisclosure agreements contained in this Article III, then the Company may offset the damages of such breach, as determined solely by the Company, against payments otherwise due to Executive under Article II or, at the Company’s option, suspend payments otherwise due to Executive under Article II during the period of such breach.  Executive acknowledges that any such offset or suspension of payments would be an exercise of the Company’s right to offset or suspend its performance hereunder upon Executive’s breach of this Agreement; such offset or suspension of payments would not constitute, and shall not be characterized as, the imposition of liquidated damages.
3.3    Governing Law of this Article III; Consent to Jurisdiction.  Any dispute regarding the reasonableness of the covenants and agreements set forth in this Article III or duration thereof, or the remedies available to the Company upon any breach of such covenants and agreements, will be governed by and interpreted in accordance with the laws of the State of the United States or other jurisdiction in which the alleged prohibited disclosure occurs, and, with respect to each such dispute, the Company and Executive each hereby consent to the jurisdiction of the state and federal courts sitting in the relevant State (or, in the case of any jurisdiction outside the United States, the relevant courts of such jurisdiction) for resolution of such dispute, and agree that service of process may be made upon him or it in any legal proceeding relating to this Article III by any means allowed under the laws of such jurisdiction.
3.4    Executive’s Understanding of this Article.  Executive hereby represents to the Company that he has read and understands, and agrees to be bound by, the terms of this Article III.  Executive acknowledges that the duration of the covenants contained in Article III are the result of arm’s length bargaining and are fair and reasonable in light of (a) the importance of the functions performed by Executive and the length of time it would take the Company to find and train a suitable replacement, and (b) Executive’s level of control over and contact with the business and operations of the Company and its Affiliates in various jurisdictions where same are conducted.  It is the desire 

Exhibit 10.13

and intent of the parties that the provisions of this Agreement be enforced to the fullest extent permitted under applicable law, whether now or hereafter in effect and, therefore, to the extent permitted by applicable law, the parties hereto waive any provision of applicable law that would render any provision of this Article III invalid or unenforceable.
Article IV     
MISCELLANEOUS
4.1    Binding Effect; Successors.  
(a)    This Agreement shall be binding upon and inure to the benefit of the Company and any of its successors or assigns.
(b)    This Agreement is personal to the Executive and shall not be assignable by the Executive without the consent of the Company (there being no obligation to give such consent) other than such rights or benefits as are transferred by will or the laws of descent and distribution.
(c)    The Company shall require any successor to or assignee of (whether direct or indirect, by purchase, merger, consolidation, or otherwise) all or substantially all of the assets or businesses of the Company (i) to assume unconditionally and expressly this Agreement and (ii) to agree to perform or to cause to be performed all of the obligations under this Agreement in the same manner and to the same extent as would have been required of the Company had no assignment or succession occurred, such assumption to be set forth in a writing reasonably satisfactory to the Executive.  
(d)    The Company shall also require all entities that control or that after the transaction will control (directly or indirectly) the Company or any such successor or assignee to agree to cause to be performed all of the obligations under this Agreement, such agreement to be set forth in a writing reasonably satisfactory to the Executive.
4.2    Notices.  All notices hereunder must be in writing and, unless otherwise specifically provided herein, will be deemed to have been given upon receipt of delivery by: (a) hand (against a receipt therefor), (b) certified or registered mail, postage prepaid, return receipt requested, (c) a nationally recognized overnight courier service (against a receipt therefor) or (d) telecopy transmission with confirmation of receipt.  All such notices must be addressed as follows:

Exhibit 10.13

If to the Company:

Gulf Island Fabrication, Inc.
Attn:  Chairman, Compensation Committee
16225 Park Ten Place, Suite 300
Houston, Texas 77084

If to the Executive:

Westley S. Stockton
16225 Park Ten Place, Suite 300
Houston, Texas 77084

or such other address as to which any party hereto may have notified the other in writing.
4.3    Governing Law.  Except as provided in Article III hereof, this Agreement shall be construed and enforced in accordance with and governed by the internal laws of the State of Louisiana without regard to principles of conflict of laws.
4.4    Withholding.  The Executive agrees that the Company has the right to withhold, from the amounts payable pursuant to this Agreement, all amounts required to be withheld under applicable income and/or employment tax laws, or as otherwise stated in documents granting rights that are affected by this Agreement.
4.5    Amendment; Waiver.  No provision of this Agreement may be modified, amended, or waived except by an instrument in writing signed by both parties, unless permitted by Section 2.7(a).  
4.6    Severability.  If any term or provision of this Agreement, or the application thereof to any person or circumstance, shall at any time or to any extent be invalid, illegal or unenforceable in any respect as written, Executive and the Company intend for any court construing this Agreement to modify or limit such provision so as to render it valid and enforceable to the fullest extent allowed by law.  Any such provision that is not susceptible of such reformation shall be ignored so as to not affect any other term or provision hereof, and the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid, illegal or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.
4.7    Waiver of Breach.  The waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach thereof.
4.8    Remedies Not Exclusive.  No remedy specified herein shall be deemed to be such party’s exclusive remedy, and accordingly, in addition to all of the rights and remedies provided for in this Agreement, the parties shall have all other rights and remedies provided to them by applicable law, rule or regulation.

Exhibit 10.13

4.9    Company’s Reservation of Rights.  Executive acknowledges and understands that the Executive serves at the pleasure of the Board and that the Company has the right at any time to terminate Executive’s status as an employee of the Company or any of its Affiliates, or to change or diminish his status during the Employment Term, subject to the rights of the Executive to claim the benefits conferred by this Agreement.
4.10    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.
* * * * *
IN WITNESS WHEREOF, the Company and the Executive have caused this Agreement to be executed as of the Agreement Date.
GULF ISLAND FABRICATION, INC.

 /s/ William E. Chiles              
Chairman, Compensation Committee

EXECUTIVE

 /s/ Westley S. Stockton                      
Westley S. StocktonExhibit
10.1

 

INTERNATIONAL
LAND ALLIANCE, INC.

2019
EQUITY INCENTIVE PLAN

 

1.
PURPOSE. The purpose of this Plan is to provide incentives to attract and retain and motivate eligible persons whose present
and potential contributions are important to the success of the Company, and any Parents and Subsidiaries that exist now or in
the future, by offering them an opportunity to participate in the Company’s future performance through the grant of Awards.
Capitalized terms not defined elsewhere in the text are defined in Section 27.

 

2.
SHARES SUBJECT TO THE PLAN.

 

2.1
Number of Shares Available. Subject to Sections 2.6 and 21 and any other applicable provisions hereof, the total number
of Shares reserved and available for grant and issuance pursuant to this Plan as of the date of adoption of the Plan by the Board
is 3,000,000 shares.

 

2.2
Lapsed, Returned Awards. Shares subject to Awards, and Shares issued under the Plan under any Award, will again be available
for grant and issuance in connection with subsequent Awards under this Plan to the extent such Shares: (a) are subject to issuance
upon exercise of an Option or SAR granted under this Plan but which cease to be subject to the Option or SAR for any reason other
than exercise of the Option or SAR; (b) are subject to Awards granted under this Plan that are forfeited or are repurchased by
the Company at the original issue price; (c) are subject to Awards granted under this Plan that otherwise terminate without such
Shares being issued; or (d) are surrendered pursuant to an Exchange Program. To the extent an Award under the Plan is paid out
in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the
Plan. Shares used or withheld to pay the exercise price of an Award or to satisfy the tax withholding obligations related to an
Award will become available for future grant or sale under the Plan. For the avoidance of doubt, Shares that otherwise become
available for grant and issuance because of the provisions of this Section 2.2 shall not include Shares subject to Awards that
initially became available because of the substitution clause in Section 21.2 hereof.

 

2.3
Minimum Share Reserve. At all times the Company shall reserve and keep available a sufficient number of Shares as shall
be required to satisfy the requirements of all outstanding Awards granted under this Plan.

 

2.4
Automatic Share Reserve Increase. The number of Shares available for grant and issuance under the Plan shall be increased
on January 1, of each of the ten (10) calendar years during the term of the Plan, by such number of Shares determined by the Board.

 

2.5
Limitations . No more than 3,000,000 Shares shall be issued pursuant to the exercise of ISO’s.

 

2.6
Adjustment of Shares . If the number of outstanding Shares is changed by a stock dividend, recapitalization, stock split,
reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company, without
consideration, then (a) the number of Shares reserved for issuance and future grant under the Plan set forth in Section 2.1, (b)
the Exercise Prices of and number of Shares subject to outstanding Options and SARs, (c) the number of Shares subject to other
outstanding Awards, (d) the maximum number of shares that may be issued as ISO’s set forth in Section 2.5, (e) the maximum
number of Shares that may be issued to an individual or to a new Employee in any one calendar year set forth in Section 3 and
(f) the number of Shares that are granted as Awards to Non-Employee Directors as set forth in Section 12, shall be proportionately
adjusted, subject to any required action by the Board or the stockholders of the Company and in compliance with applicable securities
laws; provided that fractions of a Share will not be issued.

 

3.
ELIGIBILITY. ISO’s may be granted only to Employees. All other Awards may be granted to Employees, Consultants, Directors
and Non-Employee Directors of the Company or any Parent or Subsidiary of the Company; provided such Consultants, Directors and
Non-Employee Directors render bona fide services not in connection with the offer and sale of securities in a capital-raising
transaction. No Employee will be eligible to receive more than 300,000 Shares in any calendar year under this Plan pursuant to
the grant of Awards.

 

4.
ADMINISTRATION.

 

4.1
Committee Composition; Authority. This Plan will be administered by the Committee or by the Board acting as the Committee.
Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have
full power to implement and carry out this Plan, except, however, the Board shall establish the terms for the grant of an Award
to Non-Employee Directors. The Committee will have the authority to:

 

(a)
construe and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan;

 

(b)
prescribe, amend and rescind rules and regulations relating to this Plan or any Award;

 

    	 	 	 

     

    

 

(c)
select persons to receive Awards;

 

(d)
determine the form and terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such
terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may vest and be exercised
(which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction
or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Committee will determine;

 

(e)
determine the number of Shares or other consideration subject to Awards;

 

(f)
determine the Fair Market Value in good faith and interpret the applicable provisions of this Plan and the definition of Fair
Market Value in connection with circumstances that impact the Fair Market Value, if necessary;

 

(g)
determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as alternatives to,
other Awards under this Plan or any other incentive or compensation plan of the Company or any Parent or Subsidiary of the Company;

 

(h)
grant waivers of Plan or Award conditions;

 

(i)
determine the vesting, exercisability and payment of Awards;

 

(j)
correct any defect, supply any omission or reconcile any inconsistency in this Plan, any Award or any Award Agreement;

 

 

(k)
determine whether an Award has been earned;

 

(l)
determine the terms and conditions of any, and to institute any Exchange Program;

 

(m)
reduce or waive any criteria with respect to Performance Factors;

 

(n)
adjust Performance Factors to take into account changes in law and accounting or tax rules as the Committee deems necessary or
appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls or hardships provided
that such adjustments are consistent with the regulations promulgated under Section 162(m) of the Code with respect to persons
whose compensation is subject to Section 162(m) of the Code;

 

(o)
adopt rules and/or procedures (including the adoption of any subplan under this Plan) relating to the operation and administration
of the Plan to accommodate requirements of local law and procedures outside of the United States;

 

(p)
make all other determinations necessary or advisable for the administration of this Plan; and

 

(q)
delegate any of the foregoing to a subcommittee consisting of one or more executive officers pursuant to a specific delegation.

 

4.2
Committee Interpretation and Discretion . Any determination made by the Committee with respect to any Award shall be made
in its sole discretion at the time of grant of the Award or, unless in contravention of any express term of the Plan or Award,
at any later time, and such determination shall be final and binding on the Company and all persons having an interest in any
Award under the Plan. Any dispute regarding the interpretation of the Plan or any Award Agreement shall be submitted by the Participant
or Company to the Committee for review. The resolution of such a dispute by the Committee shall be final and binding on the Company
and the Participant. The Committee may delegate to one or more executive officers the authority to review and resolve disputes
with respect to Awards held by Participants who are not Insiders, and such resolution shall be final and binding on the Company
and the Participant.

 

4.3
Section 162(m) of the Code and Section 16 of the Exchange Act . When necessary or desirable for an Award to qualify as
“performance-based compensation” under Section 162(m) of the Code the Committee shall include at least two persons
who are “outside directors” (as defined under Section 162(m) of the Code) and at least two (or a majority if more
than two then serve on the Committee) such “outside directors” shall approve the grant of such Award and timely determine
(as applicable) the Performance Period and any Performance Factors upon which vesting or settlement of any portion of such Award
is to be subject. When required by Section 162(m) of the Code, prior to settlement of any such Award at least two (or a majority
if more than two then serve on the Committee) such “outside directors” then serving on the Committee shall determine
and certify in writing the extent to which such Performance Factors have been timely achieved and the extent to which the Shares
subject to such Award have thereby been earned. Awards granted to Participants who are subject to Section 16 of the Exchange Act
must be approved by two or more “non-employee directors” (as defined in the regulations promulgated under Section
16 of the Exchange Act). With respect to Participants whose compensation is subject to Section 162(m) of the Code, and provided
that such adjustments are consistent with the regulations promulgated under Section 162(m) of the Code, the Committee may adjust
the performance goals to account for changes in law and accounting and to make such adjustments as the Committee deems necessary
or appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls or hardships,
including without limitation (i) restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring
charges, (ii) an event either not directly related to the operations of the Company or not within the reasonable control of the
Company’s management, or (iii) a change in accounting standards required by generally accepted accounting principles.

 

    	 	 	 

     

    

 

4.4
Documentation. The Award Agreement for a given Award, the Plan and any other documents may be delivered to, and accepted
by, a Participant or any other person in any manner (including electronic distribution or posting) that meets applicable legal
requirements.

 

5.
OPTIONS. The Committee may grant Options to Participants and will determine whether such Options will be Incentive Stock
Options within the meaning of the Code (“ISO’s”) or Nonqualified Stock Options (“NQSO’s
”), the number of Shares subject to the Option, the Exercise Price of the Option, the period during which the Option
may vest and be exercised, and all other terms and conditions of the Option, subject to the following:

 

5.1
Option Grant . Each Option granted under this Plan will identify the Option as an ISO or an NQSO. An Option may be, but
need not be, awarded upon satisfaction of such Performance Factors during any Performance Period as are set out in advance in
the Participant’s individual Award Agreement. If the Option is being earned upon the satisfaction of Performance Factors,
then the Committee will: (x) determine the nature, length and starting date of any Performance Period for each Option; and (y)
select from among the Performance Factors to be used to measure the performance, if any. Performance Periods may overlap and Participants
may participate simultaneously with respect to Options that are subject to different performance goals and other criteria.

 

5.2
Date of Grant . The date of grant of an Option will be the date on which the Committee makes the determination to grant
such Option, or a specified future date. The Award Agreement and a copy of this Plan will be delivered to the Participant within
a reasonable time after the granting of the Option.

 

5.3
Exercise Period . Options may be vested and exercisable within the times or upon the conditions as set forth in the Award
Agreement governing such Option; provided, however, that no Option will be exercisable after the expiration of ten (10) years
from the date the Option is granted; and provided further that no ISO granted to a person who, at the time the ISO is granted,
directly or by attribution owns more than ten percent (10%) of the total combined voting power of all classes of stock of the
Company or of any Parent or Subsidiary of the Company (“ Ten Percent Stockholder ”) will be exercisable after
the expiration of five (5) years from the date the ISO is granted. The Committee also may provide for Options to become exercisable
at one time or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the Committee
determines.

 

5.4
Exercise Price. The Exercise Price of an Option will be determined by the Committee when the Option is granted; provided
that: (i) the Exercise Price of an Option will be not less than one hundred percent (100%) of the Fair Market Value of the Shares
on the date of grant and (ii) the Exercise Price of any ISO granted to a Ten Percent Stockholder will not be less than one hundred
ten percent (110%) of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased may be made in
accordance with Section 11 and the Award Agreement and in accordance with any procedures established by the Company.

 

5.5
Method of Exercise. Any Option granted hereunder will be vested and exercisable according to the terms of the Plan and
at such times and under such conditions as determined by the Committee and set forth in the Award Agreement. An Option may not
be exercised for a fraction of a Share. An Option will be deemed exercised when the Company receives: (i) notice of exercise (in
such form as the Committee may specify from time to time) from the person entitled to exercise the Option, and (ii) full payment
for the Shares with respect to which the Option is exercised (together with applicable withholding taxes). Full payment may consist
of any consideration and method of payment authorized by the Committee and permitted by the Award Agreement and the Plan. Shares
issued upon exercise of an Option will be issued in the name of the Participant. Until the Shares are issued (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or
receive dividends or any other rights as a stockholder will exist with respect to the Shares, notwithstanding the exercise of
the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will
be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided
in Section 2.6 of the Plan. Exercising an Option in any manner will decrease the number of Shares thereafter available, both for
purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

 

5.6
Termination. The exercise of an Option will be subject to the following (except as may be otherwise provided in an Award
Agreement):

 

(a)
If the Participant is Terminated for any reason except for Cause or the Participant’s death or Disability, then the Participant
may exercise such Participant’s Options only to the extent that such Options would have been exercisable by the Participant
on the Termination Date no later than ninety (90) days after the Termination Date (or such shorter time period or longer time
period not exceeding five (5) years as may be determined by the Committee, with any exercise beyond three (3) months after the
Termination Date deemed to be the exercise of an NQSO), but in any event no later than the expiration date of the Options.

 

(b)
If the Participant is Terminated because of the Participant’s death (or the Participant dies within ninety (90) days after
a Termination other than for Cause or because of the Participant’s Disability), then the Participant’s Options may
be exercised only to the extent that such Options would have been exercisable by the Participant on the Termination Date and must
be exercised by the Participant’s legal representative, or authorized assignee, no later than twelve (12) months after the
Termination Date (or such shorter time period not less than six (6) months or longer time period not exceeding five (5) years
as may be determined by the Committee), but in any event no later than the expiration date of the Options.

 

    	 	 	 

     

    

 

(c)
If the Participant is Terminated because of the Participant’s Disability, then the Participant’s Options may be exercised
only to the extent that such Options would have been exercisable by the Participant on the Termination Date and must be exercised
by the Participant (or the Participant’s legal representative or authorized assignee) no later than six (6) months after
the Termination Date (with any exercise beyond (a) three (3) months after the Termination Date when the Termination is for a Disability
that is not a “permanent and total disability” as defined in Section 22(e)(3) of the Code, or (b) twelve (12) months
after the Termination Date when the Termination is for a Disability that is a “permanent and total disability” as
defined in Section 22(e)(3) of the Code, deemed to be exercise of an NQSO), but in any event no later than the expiration date
of the Options.

 

(d)
If the Participant is terminated for Cause, then Participant’s Options shall expire on such Participant’s Termination
Date, or at such later time and on such conditions as are determined by the Committee, but in any no event later than the expiration
date of the Options. Unless otherwise provided in the Award Agreement, Cause will have the meaning set forth in the Plan.

 

5.7
Limitations on Exercise . The Committee may specify a minimum number of Shares that may be purchased on any exercise of
an Option, provided that such minimum number will not prevent any Participant from exercising the Option for the full number of
Shares for which it is then exercisable.

 

5.8
Limitations on ISO’s . With respect to Awards granted as ISO’s, to the extent that the aggregate Fair Market
Value of the Shares with respect to which such ISO’s are exercisable for the first time by the Participant during any calendar
year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options
will be treated as NQSO’s. For purposes of this Section 5.8, ISO’s will be taken into account in the order in which
they were granted. The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares
is granted. In the event that the Code or the regulations promulgated thereunder are amended after the Effective Date to provide
for a different limit on the Fair Market Value of Shares permitted to be subject to ISO’s, such different limit will be
automatically incorporated herein and will apply to any Options granted after the effective date of such amendment.

 

5.9
Modification, Extension or Renewal . The Committee may modify, extend or renew outstanding Options and authorize the grant
of new Options in substitution therefor, provided that any such action may not, without the written consent of a Participant,
impair any of such Participant’s rights under any Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code. Subject to Section 18 of this Plan,
by written notice to affected Participants, the Committee may reduce the Exercise Price of outstanding Options without the consent
of such Participants; provided, however, that the Exercise Price may not be reduced below the Fair Market Value on the date the
action is taken to reduce the Exercise Price.

 

5.10
No Disqualification . Notwithstanding any other provision in this Plan, no term of this Plan relating to ISO’s will
be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify
this Plan under Section 422 of the Code or, without the consent of the Participant affected, to disqualify any ISO under Section
422 of the Code.

 

6.
RESTRICTED STOCK AWARDS.

 

6.1
Awards of Restricted Stock . A Restricted Stock Award is an offer by the Company to sell to a Participant Shares that are
subject to restrictions (“Restricted Stock”). The Committee will determine to whom an offer will be made, the number
of Shares the Participant may purchase, the Purchase Price, the restrictions under which the Shares will be subject and all other
terms and conditions of the Restricted Stock Award, subject to the Plan.

 

6.2
Restricted Stock Purchase Agreement. All purchases under a Restricted Stock Award will be evidenced by an Award Agreement.
Except as may otherwise be provided in an Award Agreement, a Participant accepts a Restricted Stock Award by signing and delivering
to the Company an Award Agreement with full payment of the Purchase Price, within thirty (30) days from the date the Award Agreement
was delivered to the Participant. If the Participant does not accept such Award within thirty (30) days, then the offer of such
Restricted Stock Award will terminate, unless the Committee determines otherwise.

 

6.3
Purchase Price. The Purchase Price for a Restricted Stock Award will be determined by the Committee and may be less than
Fair Market Value on the date the Restricted Stock Award is granted. Payment of the Purchase Price must be made in accordance
with Section 11 of the Plan, and the Award Agreement and in accordance with any procedures established by the Company.

 

6.4
Terms of Restricted Stock Awards . Restricted Stock Awards will be subject to such restrictions as the Committee may impose
or are required by law. These restrictions may be based on completion of a specified number of years of service with the Company
or upon completion of Performance Factors, if any, during any Performance Period as set out in advance in the Participant’s
Award Agreement. Prior to the grant of a Restricted Stock Award, the Committee shall: (a) determine the nature, length and starting
date of any Performance Period for the Restricted Stock Award; (b) select from among the Performance Factors to be used to measure
performance goals, if any; and (c) determine the number of Shares that may be awarded to the Participant. Performance Periods
may overlap and a Participant may participate simultaneously with respect to Restricted Stock Awards that are subject to different
Performance Periods and having different performance goals and other criteria.

 

6.5
Termination of Participant . Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such
Participant’s Termination Date (unless determined otherwise by the Committee).

 

    	 	 	 

     

    

 

7.
STOCK BONUS AWARDS .

 

7.1
Awards of Stock Bonuses . A Stock Bonus Award is an award to an eligible person of Shares for services to be rendered or
for past services already rendered to the Company or any Parent or Subsidiary. All Stock Bonus Awards shall be made pursuant to
an Award Agreement. No payment from the Participant will be required for Shares awarded pursuant to a Stock Bonus Award.

 

7.2
Terms of Stock Bonus Awards . The Committee will determine the number of Shares to be awarded to the Participant under
a Stock Bonus Award and any restrictions thereon. These restrictions may be based upon completion of a specified number of years
of service with the Company or upon satisfaction of performance goals based on Performance Factors during any Performance Period
as set out in advance in the Participant’s Stock Bonus Agreement. Prior to the grant of any Stock Bonus Award the Committee
shall: (a) determine the nature, length and starting date of any Performance Period for the Stock Bonus Award; (b) select from
among the Performance Factors to be used to measure performance goals; and (c) determine the number of Shares that may be awarded
to the Participant. Performance Periods may overlap and a Participant may participate simultaneously with respect to Stock Bonus
Awards that are subject to different Performance Periods and different performance goals and other criteria.

 

7.3
Form of Payment to Participant . Payment may be made in the form of cash, whole Shares, services rendered, or a combination
thereof, based on the Fair Market Value of the Shares earned under a Stock Bonus Award on the date of payment, as determined in
the sole discretion of the Committee.

 

7.4
Termination of Participation . Except as may be set forth in the Participant’s Award Agreement, vesting ceases on
such Participant’s Termination Date (unless determined otherwise by the Committee).

 

8.
STOCK APPRECIATION RIGHTS.

 

8.1
Awards of SARs . A Stock Appreciation Right (“SAR”) is an award to a Participant that may be settled in cash,
or Shares (which may consist of Restricted Stock), having a value equal to (a) the difference between the Fair Market Value on
the date of exercise over the Exercise Price multiplied by (b) the number of Shares with respect to which the SAR is being settled
(subject to any maximum number of Shares that may be issuable as specified in an Award Agreement). All SARs shall be made pursuant
to an Award Agreement.

 

8.2
Terms of SARs . The Committee will determine the terms of each SAR including, without limitation: (a) the number of Shares
subject to the SAR; (b) the Exercise Price and the time or times during which the SAR may be settled; (c) the consideration to
be distributed on settlement of the SAR; and (d) the effect of the Participant’s Termination on each SAR. The Exercise Price
of the SAR will be determined by the Committee when the SAR is granted, and may not be less than Fair Market Value. A SAR may
be awarded upon satisfaction of Performance Factors, if any, during any Performance Period as are set out in advance in the Participant’s
individual Award Agreement. If the SAR is being earned upon the satisfaction of Performance Factors, then the Committee will:
(x) determine the nature, length and starting date of any Performance Period for each SAR; and (y) select from among the Performance
Factors to be used to measure the performance, if any. Performance Periods may overlap and Participants may participate simultaneously
with respect to SARs that are subject to different Performance Factors and other criteria.

 

8.3
Exercise Period and Expiration Date . A SAR will be exercisable within the times or upon the occurrence of events determined
by the Committee and set forth in the Award Agreement governing such SAR. The SAR Agreement shall set forth the expiration date;
provided that no SAR will be exercisable after the expiration of ten (10) years from the date the SAR is granted. The Committee
may also provide for SARs to become exercisable at one time or from time to time, periodically or otherwise (including, without
limitation, upon the attainment during a Performance Period of performance goals based on Performance Factors), in such number
of Shares or percentage of the Shares subject to the SAR as the Committee determines. Except as may be set forth in the Participant’s
Award Agreement, vesting ceases on such Participant’s Termination Date (unless determined otherwise by the Committee). Notwithstanding
the foregoing, the rules of Section 5.6 also will apply to SARs.

 

8.4
Form of Settlement . Upon exercise of a SAR, a Participant will be entitled to receive payment from the Company in an amount
determined by multiplying (i) the difference between the Fair Market Value of a Share on the date of exercise over the Exercise
Price; times (ii) the number of Shares with respect to which the SAR is exercised. At the discretion of the Committee, the payment
from the Company for the SAR exercise may be in cash, in Shares of equivalent value, or in some combination thereof. The portion
of a SAR being settled may be paid currently or on a deferred basis with such interest or dividend equivalent, if any, as the
Committee determines, provided that the terms of the SAR and any deferral satisfy the requirements of Section 409A of the Code.

 

8.5
Termination of Participation . Except as may be set forth in the Participant’s Award Agreement, vesting ceases on
such Participant’s Termination Date (unless determined otherwise by the Committee).

 

9.
RESTRICTED STOCK UNITS.

 

9.1
Awards of Restricted Stock Units . A Restricted Stock Unit (“RSU”) is an award to a Participant covering a
number of Shares that may be settled in cash, or by issuance of those Shares (which may consist of Restricted Stock). All RSU’s
shall be made pursuant to an Award Agreement.

 

    	 	 	 

     

    

 

9.2
Terms of RSU’s . The Committee will determine the terms of an RSU including, without limitation: (a) the number of
Shares subject to the RSU; (b) the time or times during which the RSU may be settled; (c) the consideration to be distributed
on settlement; and (d) the effect of the Participant’s Termination on each RSU. An RSU may be awarded upon satisfaction
of such performance goals based on Performance Factors during any Performance Period as are set out in advance in the Participant’s
Award Agreement. If the RSU is being earned upon satisfaction of Performance Factors, then the Committee will: (x) determine the
nature, length and starting date of any Performance Period for the RSU; (y) select from among the Performance Factors to be used
to measure the performance, if any; and (z) determine the number of Shares deemed subject to the RSU. Performance Periods may
overlap and participants may participate simultaneously with respect to RSU’s that are subject to different Performance
Periods and different performance goals and other criteria.

 

9.3
Form and Timing of Settlement . Payment of earned RSU’s shall be made as soon as practicable after the date(s) determined
by the Committee and set forth in the Award Agreement. The Committee, in its sole discretion, may settle earned RSU’s in
cash, Shares, or a combination of both. The Committee may also permit a Participant to defer payment under a RSU to a date or
dates after the RSU is earned provided that the terms of the RSU and any deferral satisfy the requirements of Section 409A of
the Code.

 

9.4
Termination of Participant . Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such
Participant’s Termination Date (unless determined otherwise by the Committee).

 

10.
PERFORMANCE AWARDS.

 

10.1
Performance Awards . A Performance Award is an award to a Participant of a cash bonus or a Performance Share bonus. Grants
of Performance Awards shall be made pursuant to an Award Agreement.

 

10.2
Terms of Performance Awards . The Committee will determine, and each Award Agreement shall set forth, the terms of each
award of Performance Award including, without limitation: (a) the amount of any cash bonus; (b) the number of Shares deemed subject
to a Performance Share bonus; (c) the Performance Factors and Performance Period that shall determine the time and extent to which
each Performance Award shall be settled; (d) the consideration to be distributed on settlement; and (e) the effect of the Participant’s
Termination on each Performance Award. In establishing Performance Factors and the Performance Period the Committee will: (x)
determine the nature, length and starting date of any Performance Period; and (y) select from among the Performance Factors to
be used. Prior to settlement the Committee shall determine the extent to which Performance Awards have been earned. Performance
Periods may overlap and Participants may participate simultaneously with respect to Performance Awards that are subject to different
Performance Periods and different performance goals and other criteria. No Participant will be eligible to receive more than $100,000
in Performance Awards in any calendar year under this Plan.

 

10.3
Value, Earning and Timing of Performance Shares . Any Performance Share bonus will have an initial value equal to the Fair
Market Value of a Share on the date of grant. After the applicable Performance Period has ended, the holder of a Performance Share
bonus will be entitled to receive a payout of the number of Shares earned by the Participant over the Performance Period, to be
determined as a function of the extent to which the corresponding Performance Factors or other vesting provisions have been achieved.
The Committee, in its sole discretion, may pay an earned Performance Share bonus in the form of cash, in Shares (which have an
aggregate Fair Market Value equal to the value of the earned Performance Shares at the close of the applicable Performance Period)
or in a combination thereof. Performance Share bonuses may also be settled in Restricted Stock.

 

10.4
Termination of Participant . Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such
Participant’s Termination Date (unless determined otherwise by the Committee).

 

11.
PAYMENT FOR SHARE PURCHASES.

 

Payment
from a Participant for Shares purchased pursuant to this Plan may be made in cash or by check or, where expressly approved for
the Participant by the Committee and where permitted by law (and to the extent not otherwise set forth in the applicable Award
Agreement):

 

(a)
by cancellation of indebtedness of the Company to the Participant;

 

(b)
by surrender of shares of the Company held by the Participant that have a Fair Market Value on the date of surrender equal to
the aggregate exercise price of the Shares as to which said Award will be exercised or settled;

 

(c)
by waiver of compensation due or accrued to the Participant for services rendered or to be rendered to the Company or a Parent
or Subsidiary of the Company;

 

(d)
by consideration received by the Company pursuant to a broker-assisted or other form of cashless exercise program implemented
by the Company in connection with the Plan;

 

(e)
by any combination of the foregoing; or

 

(f)
by any other method of payment as is permitted by applicable law.

 

    	 	 	 

     

    

 

12.
GRANTS TO NON-EMPLOYEE DIRECTORS AND CONSULTANTS.

 

12.1
Types of Awards . Non-Employee Directors are eligible to receive any type of Award offered under this Plan except ISO’s.
Awards pursuant to this Section 12 may be automatically made pursuant to policy adopted by the Board, or made from time to time
as determined in the discretion of the Board.

 

12.2
Eligibility . Awards pursuant to this Section 12 shall be granted only to Non-Employee Directors and Consultants. A Non-Employee
Director who is elected or re-elected as a member of the Board will be eligible to receive an Award under this Section 12.

 

12.3
Vesting, Exercisability and Settlement . Except as set forth in Section 21, Awards shall vest, become exercisable and be
settled as determined by the Board. With respect to Options and SARs, the exercise price granted to Non-Employee Directors shall
not be less than the Fair Market Value of the Shares at the time that such Option or SAR is granted.

 

12.4
Election to receive Awards in Lieu of Cash . A Non-Employee Director may elect to receive his or her annual retainer payments
and/or meeting fees from the Company in the form of cash or Awards or a combination thereof, as determined by the Committee. Such
Awards shall be issued under the Plan. An election under this Section 12.4 shall be filed with the Company on the form prescribed
by the Company.

 

13.
WITHHOLDING TAXES.

 

13.1
Withholding Generally . Whenever Shares are to be issued in satisfaction of Awards granted under this Plan, the Company
may require the Participant to remit to the Company, or to the Parent or Subsidiary employing the Participant, an amount sufficient
to satisfy applicable U.S. federal, state, local and international withholding tax requirements or any other tax liability legally
due from the Participant prior to the delivery of Shares pursuant to exercise or settlement of any Award. Whenever payments in
satisfaction of Awards granted under this Plan are to be made in cash, such payment will be net of an amount sufficient to satisfy
applicable U.S. federal, state, local and international withholding tax requirements or any other tax liability legally due from
the Participant. The Fair Market Value of the Shares will be determined as of the date that the taxes are required to be withheld
and such Shares will be valued based on the value of the actual trade or, if there is none, the Fair Market Value of the Shares
as of the previous trading day.

 

13.2
Stock Withholding . The Committee, in its sole discretion and pursuant to such procedures as it may specify from time to
time and to limitations of local law, may require or permit a Participant to satisfy such tax withholding obligation or any other
tax liability legally due from the Participant, in whole or in part by (without limitation) (i) paying cash, (ii) electing to
have the Company withhold otherwise deliverable cash or Shares having a Fair Market Value equal to the minimum statutory amount
required to be withheld, or (iii) delivering to the Company already-owned Shares having a Fair Market Value equal to the minimum
amount required to be withheld.

 

14.
TRANSFERABILITY.

 

14.1
Transfer Generally . Unless determined otherwise by the Committee or pursuant to Section 14.2, an Award may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution.
If the Committee makes an Award transferable, including, without limitation, by instrument to an inter vivos or testamentary trust
in which the Awards are to be passed to beneficiaries upon the death of the trustor (settlor) or by gift to a Permitted Transferee,
such Award will contain such additional terms and conditions as the Committee deems appropriate. All Awards shall be exercisable:
(i) during the Participant’s lifetime only by (A) the Participant, or (B) the Participant’s guardian or legal representative;
(ii) after the Participant’s death, by the legal representative of the Participant’s heirs or legatees; and (iii)
in the case of all awards except ISO’s, by a Permitted Transferee.

 

14.2
Award Transfer Program . Notwithstanding any contrary provision of the Plan, the Committee shall have all discretion and
authority to determine and implement the terms and conditions of any Award Transfer Program instituted pursuant to this Section
14.2 and shall have the authority to amend the terms of any Award participating, or otherwise eligible to participate in, the
Award Transfer Program, including (but not limited to) the authority to (i) amend (including to extend) the expiration date, post-termination
exercise period and/or forfeiture conditions of any such Award, (ii) amend or remove any provisions of the Award relating to the
Award holder’s continued service to the Company, (iii) amend the permissible payment methods with respect to the exercise
or purchase of any such Award, (iv) amend the adjustments to be implemented in the event of changes in the capitalization and
other similar events with respect to such Award, and (v) make such other changes to the terms of such Award as the Committee deems
necessary or appropriate in its sole discretion.

 

15.
PRIVILEGES OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES.

 

15.1
Voting and Dividends . No Participant will have any of the rights of a stockholder with respect to any Shares until the
Shares are issued to the Participant, except for any dividend equivalent rights permitted by an applicable Award Agreement. After
Shares are issued to the Participant, the Participant will be a stockholder and have all the rights of a stockholder with respect
to such Shares, including the right to vote and receive all dividends or other distributions made or paid with respect to such
Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Participant may
become entitled to receive with respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate
or capital structure of the Company will be subject to the same restrictions as the Restricted Stock; provided, further, that
the Participant will have no right to retain such stock dividends or stock distributions with respect to Shares that are repurchased
at the Participant’s Purchase Price or Exercise Price, as the case may be, pursuant to Section 15.2.

 

    	 	 	 

     

    

 

15.2
Restrictions on Shares. At the discretion of the Committee, the Company may reserve to itself and/or its assignee(s) a
right to repurchase (a “ Right of Repurchase ”) a portion of any or all Unvested Shares held by a Participant
following such Participant’s Termination at any time within ninety (90) days after the later of the Participant’s
Termination Date and the date the Participant purchases Shares under this Plan, for cash and/or cancellation of purchase money
indebtedness, at the Participant’s Purchase Price or Exercise Price, as the case may be.

 

16.
CERTIFICATES. All Shares, or other securities, except those registered under a registration statement filed with the SEC,
whether or not certificated, delivered under this Plan will be subject to such stock transfer orders, legends and other restrictions
as the Committee may deem necessary or advisable, including restrictions under any applicable U.S. federal, state or foreign securities
law, or any rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system upon which
the Shares may be listed or quoted and any non-U.S. exchange controls or securities law restrictions to which the Shares are subject.

 

17.
ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a Participant’s Shares, the Committee may require the Participant
to deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by the Committee,
appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow until such restrictions
have lapsed or terminated, and the Committee may cause a legend or legends referencing such restrictions to be placed on the certificates.
Any Participant who is permitted to execute a promissory note as partial or full consideration for the purchase of Shares under
this Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased as collateral to secure
the payment of the Participant’s obligation to the Company under the promissory note; provided, however, that the Committee
may require or accept other or additional forms of collateral to secure the payment of such obligation and, in any event, the
Company will have full recourse against the Participant under the promissory note notwithstanding any pledge of the Participant’s
Shares or other collateral. In connection with any pledge of the Shares, the Participant will be required to execute and deliver
a written pledge agreement in such form as the Committee will from time to time approve. The Shares purchased with the promissory
note may be released from the pledge on a pro rata basis as the promissory note is paid.

 

18.
REPRICING; EXCHANGE AND BUYOUT OF AWARDS. Without prior stockholder approval the Committee may (i) reprice Options or SARS
(and where such repricing is a reduction in the Exercise Price of outstanding Options or SARS, the consent of the affected Participants
is not required provided written notice is provided to them, notwithstanding any adverse tax consequences to them arising from
the repricing), and (ii) with the consent of the respective Participants (unless not required pursuant to Section 5.9 of the Plan),
pay cash or issue new Awards in exchange for the surrender and cancellation of any, or all, outstanding Awards.

 

19.
SECURITIES LAW AND OTHER REGULATORY COMPLIANCE . An Award will not be effective unless such Award is in compliance with all
applicable U.S. and foreign federal and state securities laws, rules and regulations of any governmental body, and the requirements
of any stock exchange or automated quotation system upon which the Shares may then be listed or quoted, as they are in effect
on the date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this
Plan, the Company will have no obligation to issue or deliver certificates for Shares under this Plan prior to: (a) obtaining
any approvals from governmental agencies that the Company determines are necessary or advisable; and/or (b) completion of any
registration or other qualification of such Shares under any state or federal or foreign law or ruling of any governmental body
that the Company determines to be necessary or advisable. The Company will be under no obligation to register the Shares with
the SEC or to effect compliance with the registration, qualification or listing requirements of any foreign or state securities
laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure to do
so.

 

20.
NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on any
Participant any right to continue in the employ of, or to continue any other relationship with, the Company or any Parent or Subsidiary
of the Company or limit in any way the right of the Company or any Parent or Subsidiary of the Company to terminate Participant’s
employment or other relationship at any time.

 

21.
CORPORATE TRANSACTIONS.

 

21.1
Assumption or Replacement of Awards by Successor. In the event of a Corporate Transaction any or all outstanding Awards
may be assumed or replaced by the successor corporation, which assumption or replacement shall be binding on all Participants.
In the alternative, the successor corporation may substitute equivalent Awards or provide substantially similar consideration
to Participants as was provided to stockholders (after taking into account the existing provisions of the Awards). The successor
corporation may also issue, in place of outstanding Shares of the Company held by the Participant, substantially similar shares
or other property subject to repurchase restrictions no less favorable to the Participant. In the event such successor or acquiring
corporation (if any) refuses to assume, convert, replace or substitute Awards, as provided above, pursuant to a Corporate Transaction,
then notwithstanding any other provision in this Plan to the contrary, such Awards shall have their vesting accelerate as to all
shares subject to such Award (and any applicable right of repurchase fully lapse) immediately prior to the Corporate Transaction
unless otherwise determined by the Board and then such Awards will terminate. In addition, in the event such successor or acquiring
corporation (if any) refuses to assume, convert, replace or substitute Awards, as provided above, pursuant to a Corporate Transaction,
the Committee will notify the Participant in writing or electronically that such Award will be exercisable for a period of time
determined by the Committee in its sole discretion, and such Award will terminate upon the expiration of such period. Awards need
not be treated similarly in a Corporate Transaction.

 

    	 	 	 

     

    

 

21.2
Assumption of Awards by the Company. The Company, from time to time, also may substitute or assume outstanding awards granted
by another company, whether in connection with an acquisition of such other company or otherwise, by either; (a) granting an Award
under this Plan in substitution of such other company’s award; or (b) assuming such award as if it had been granted under
this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such substitution or assumption
will be permissible if the holder of the substituted or assumed award would have been eligible to be granted an Award under this
Plan if the other company had applied the rules of this Plan to such grant. In the event the Company assumes an award granted
by another company, the terms and conditions of such award will remain unchanged (except that the Purchase Price or the Exercise
Price, as the case may be, and the number and nature of Shares issuable upon exercise or settlement of any such Award will be
adjusted appropriately pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option in substitution
rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price.

 

21.3
Non-Employee Directors’ Awards. Notwithstanding any provision to the contrary herein, in the event of a Corporate
Transaction, the vesting of all Awards granted to Non-Employee Directors shall accelerate and such Awards shall become exercisable
(as applicable) in full prior to the consummation of such event at such times and on such conditions as the Committee determines.

 

22.
ADOPTION AND STOCKHOLDER APPROVAL. This Plan shall be submitted for the approval of the Company’s stockholders, consistent
with applicable laws, within twelve (12) months before or after the date this Plan is adopted by the Board.

 

23.
TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided herein, this Plan will become effective on the Effective
Date and will terminate ten (10) years from the date this Plan is adopted by the Board. This Plan and all Awards granted hereunder
shall be governed by and construed in accordance with the laws of the State of Nevada.

 

24.
AMENDMENT OR TERMINATION OF PLAN. The Board may at any time terminate or amend this Plan in any respect, including, without
limitation, amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan; provided, however, that
the Board will not, without the approval of the stockholders of the Company, amend this Plan in any manner that requires such
stockholder approval; provided further, that a Participant’s Award shall be governed by the version of this Plan then in
effect at the time such Award was granted.

 

25.
NON-EXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders
of the Company for approval, nor any provision of this Plan will be construed as creating any limitations on the power of the
Board to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting
of stock awards and bonuses otherwise than under this Plan, and such arrangements may be either generally applicable or applicable
only in specific cases.

 

26.
INSIDER TRADING POLICY. Each Participant who receives an Award shall comply with any policy adopted by the Company from time
to time covering transactions in the Company’s securities by Employees, officers and/or directors of the Company.

 

27.
DEFINITIONS. As used in this Plan, and except as elsewhere defined herein, the following terms will have the following meanings:

 

“
Award ” means any award under the Plan, including any Option, Restricted Stock, Stock Bonus, Stock Appreciation Right,
Restricted Stock Unit or award of Performance Shares.

 

“
Award Agreement ” means, with respect to each Award, the written or electronic agreement between the Company and
the Participant setting forth the terms and conditions of the Award, which shall be in substantially a form (which need not be
the same for each Participant) that the Committee has from time to time approved, and will comply with and be subject to the terms
and conditions of this Plan.

 

“
Award Transfer Program ” means any program instituted by the Committee which would permit Participants the opportunity
to transfer any outstanding Awards to a financial institution or other person or entity approved by the Committee.

 

“
Board ” means the Board of Directors of the Company.

 

“
Cause ” means (i) Participant’s willful failure substantially to perform his or her duties and responsibilities
to the Company or deliberate violation of a Company policy; (ii) Participant’s commission of any act of fraud, embezzlement,
dishonesty or any other willful misconduct that has caused or is reasonably expected to result in material injury to the Company;
(iii) unauthorized use or disclosure by Participant of any proprietary information or trade secrets of the Company or any other
party to whom the Participant owes an obligation of non disclosure as a result of his or her relationship with the Company; or
(iv) Participant’s willful breach of any of his or her obligations under any written agreement or covenant with the Company.
The determination as to whether a Participant is being terminated for Cause shall be made in good faith by the Company and shall
be final and binding on the Participant. The foregoing definition does not in any way limit the Company’s ability to terminate
a Participant’s employment or consulting relationship at any time as provided in Section 20 above, and the term “Company”
will be interpreted to include any Subsidiary or Parent, as appropriate.

 

“
Code ” means the United States Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

 

    	 	 	 

     

    

 

“
Committee ” means the Compensation Committee of the Board or those persons to whom administration of the Plan, or
part of the Plan, has been delegated as permitted by law.

 

“
Common Stock ” means the Common Stock of the Company.

 

“Company”
means International Land Alliance, Inc., or any successor corporation.

 

“
Consultant ” means any person, including an advisor or independent contractor, engaged by the Company or a Parent
or Subsidiary to render services to such entity.

 

“
Corporate Transaction ” means the occurrence of any of the following events: (i) any “person” (as such
term is used in Sections 13(d) and 14 (d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule
13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the
total voting power represented by the Company’s then-outstanding voting securities; (ii) the consummation of the sale or
disposition by the Company of all or substantially all of the Company’s assets; (iii) the consummation of a merger or consolidation
of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented
by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation
or (iv) any other transaction which qualifies as a “corporate transaction” under Section 424(a) of the Code wherein
the stockholders of the Company give up all of their equity interest in the Company (except for the acquisition, sale or transfer
of all or substantially all of the outstanding shares of the Company).

 

“
Director ” means a member of the Board.

 

“
Disability ” means in the case of incentive stock options, total and permanent disability as defined in Section 22(e)(3)
of the Code and in the case of other Awards, that the Participant is unable to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months.

 

“Effective
Date” The effective date of the Plan is February 12, 2019. The Plan shall be submitted to the shareholders of the Company
for approval. Until (i) the Plan has been approved by a majority of the Company’s shareholders, and (ii) the requirements
of any applicable federal or state securities laws have been met, no Restricted Stock shall be awarded, and no Option shall be
granted or exercisable, that is not contingent on these events.

 

“
Employee ” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary
of the Company. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute
“employment” by the Company.

 

“
Exchange Act ” means the United States Securities Exchange Act of 1934, as amended.

 

“
Exchange Program ” means a program pursuant to which outstanding Awards are surrendered, cancelled or exchanged for
cash, the same type of Award or a different Award (or combination thereof).

 

“
Exercise Price ” means, with respect to an Option, the price at which a holder may purchase the Shares issuable upon
exercise of an Option and with respect to a SAR, the price at which the SAR is granted to the holder thereof.

 

“
Fair Market Value ” means, as of any date, the value of a share of the Company’s Common Stock determined as
follows:

 

(a)
if such Common Stock is publicly traded and is then listed on a national securities exchange, the closing price on the date of
determination on the principal national securities exchange on which the Common Stock is listed or admitted to trading as officially
quoted in the composite tape of transactions on such exchange or such other source as the Committee deems reliable for the applicable
date;

 

(b)
if such Common Stock is publicly traded but is neither listed nor admitted to trading on a national securities exchange, the average
of the closing bid and asked prices on the date of determination as reported in The Wall Street Journal or such other source as
the Committee deems reliable;

 

(c)
in the case of an Option or SAR grant made on the Effective Date, the price per share at which shares of the Company’s Common
Stock are initially offered for sale to the public by the Company’s underwriters in the initial public offering of the Company’s
Common Stock pursuant to a registration statement filed with the SEC under the Securities Act; or

 

(d)
if none of the foregoing is applicable, by the Board or the Committee in good faith.

 

“
Insider ” means an officer or director of the Company or any other person whose transactions in the Company’s
Common Stock are subject to Section 16 of the Exchange Act.

 

“
Non-Employee Director ” means a Director who is not an Employee of the Company or any parent or Subsidiary.

 

    	 	 	 

     

    

 

“
Option ” means an award of an option to purchase Shares pursuant to Section 5.

 

“
Parent ” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company
if each of such corporations other than the Company owns stock possessing fifty percent (50%) or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

 

“
Participant ” means a person who holds an Award under this Plan.

 

“Performance
Award” means cash or stock granted pursuant to Section 10 or Section 12 of the Plan.

 

“Performance
Factors” means any of the factors selected by the Committee and specified in an Award Agreement, from among the following
objective measures, either individually, alternatively or in any combination, applied to the Company as a whole or any business
unit or Subsidiary, either individually, alternatively, or in any combination, on a GAAP or non-GAAP basis, and measured, to the
extent applicable on an absolute basis or relative to a pre-established target, to determine whether the performance goals established
by the Committee with respect to applicable Awards have been satisfied:

 

	 	●	Profit
    Before Tax;
	 	 	 
	 	●	Billings;
	 	 	 
	 	●	Revenue;
	 	 	 
	 	●	(Net
    revenue;
	 	 	 
	 	●	Earnings
    (which may include earnings before interest and taxes, earnings before taxes, and net earnings);
	 	 	 
	 	●	Operating
    income;
	 	 	 
	 	●	Operating
    margin;
	 	 	 
	 	●	Operating
    profit;
	 	 	 
	 	●	Controllable
    operating profit, or net operating profit;
	 	 	 
	 	●	Net
    Profit;
	 	 	 
	 	●	Gross
    margin;
	 	 	 
	 	●	Operating
    expenses or operating expenses as a percentage of revenue;
	 	 	 
	 	●	Net
    income;
	 	 	 
	 	●	Earnings
    per share;
	 	 	 
	 	●	Total
    stockholder return;
	 	 	 
	 	●	Market
    share;
	 	 	 
	 	●	Return
    on assets or net assets;
	 	 	 
	 	●	The
    Company’s stock price;
	 	 	 
	 	●	Growth
    in stockholder value relative to a pre-determined index;
	 	 	 
	 	●	Return
    on equity;
	 	 	 
	 	●	Return
    on invested capital;
	 	 	 
	 	●	Cash
    Flow (including free cash flow or operating cash flows)
	 	 	 
	 	●	Cash
    conversion cycle;
	 	 	 
	 	●	Economic
    value added;

 

    	 	 	 

     

    

 

	 	●	Individual
    confidential business objectives;
	 	 	 
	 	●	Contract
    awards or backlog;
	 	 	 
	 	●	Overhead
    or other expense reduction;
	 	 	 
	 	●	Credit
    rating;
	 	 	 
	 	●	Strategic
    plan development and implementation;
	 	 	 
	 	●	Succession
    plan development and implementation;
	 	 	 
	 	●	Customer
    indicators;
	 	 	 
	 	●	New
    product invention or innovation;
	 	 	 
	 	●	Attainment
    of research and development milestones;
	 	 	 
	 	●	Attainment
    of objective operating goals and employee metrics; and
	 	 	 
	 	●	Any
    other metric that is capable of measurement as determined by the Committee.

 

The
Committee may, in recognition of unusual or non-recurring items such as acquisition-related activities or changes in applicable
accounting rules, provide for one or more equitable adjustments (based on objective standards) to the Performance Factors to preserve
the Committee’s original intent regarding the Performance Factors at the time of the initial award grant. It is within the
sole discretion of the Committee to make or not make any such equitable adjustments.

 

“
Performance Period ” means the period of service determined by the Committee, during which years of service or performance
is to be measured for the Award.

 

“
Performance Share ” means a performance share bonus granted as a Performance Award.

 

“
Permitted Transferee ” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse,
sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (including
adoptive relationships) of the Employee, any person sharing the Employee’s household (other than a tenant or employee),
a trust in which these persons (or the Employee) have more than 50% of the beneficial interest, a foundation in which these persons
(or the Employee) control the management of assets, and any other entity in which these persons (or the Employee) own more than
50% of the voting interests.

 

“
Plan ” means this International Land Alliance, Inc. 2019 Equity Incentive Plan.

 

“
Purchase Price ” means the price to be paid for Shares acquired under the Plan, other than Shares acquired upon exercise
of an Option or SAR.

 

“Restricted
Stock Award” means an award of Shares pursuant to Section 6 or Section 12 of the Plan or issued pursuant to the early
exercise of an Option.

 

“
Restricted Stock Unit ” means an Award granted pursuant to Section 9 or Section 12 of the Plan.

 

“
SEC ” means the United States Securities and Exchange Commission.

 

“
Securities Act ” means the United States Securities Act of 1933, as amended.

 

“
Shares ” means shares of the Company’s Common Stock and the common stock of any successor security.

 

“
Stock Appreciation Right ” means an Award granted pursuant to Section 8 or Section 12 of the Plan.

 

“Stock
Bonus” means an Award granted pursuant to Section 7 or Section 12 of the Plan.

 

“
Subsidiary ” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

    	 	 	 

     

    

 

“
Termination ” or “ Terminated ” means, for purposes of this Plan with respect to a Participant,
that the Participant has for any reason ceased to provide services as an employee, officer, director, consultant, independent
contractor or advisor to the Company or a Parent or Subsidiary of the Company. An employee will not be deemed to have ceased to
provide services in the case of (i) sick leave, (ii) military leave, or (iii) any other leave of absence approved by the Committee;
provided, that such leave is for a period of not more than 90 days, unless reemployment upon the expiration of such leave is guaranteed
by contract or statute or unless provided otherwise pursuant to formal policy adopted from time to time by the Company and issued
and promulgated to employees in writing. In the case of any employee on an approved leave of absence, the Committee may make such
provisions respecting suspension of vesting of the Award while on leave from the employ of the Company or a Parent or Subsidiary
of the Company as it may deem appropriate, except that in no event may an Award be exercised after the expiration of the term
set forth in the applicable Award Agreement. In the event of military leave, if required by applicable laws, vesting shall continue
for the longest period that vesting continues under any other statutory or Company approved leave of absence and, upon a Participant’s
returning from military leave (under conditions that would entitle him or her to protection upon such return under the Uniform
Services Employment and Reemployment Rights Act), he or she shall be given vesting credit with respect to Awards to the same extent
as would have applied had the Participant continued to provide services to the Company throughout the leave on the same terms
as he or she was providing services immediately prior to such leave. An employee shall have terminated employment as of the date
he or she ceases to be employed (regardless of whether the termination is in breach of local laws or is later found to be invalid)
and employment shall not be extended by any notice period or garden leave mandated by local law. The Committee will have sole
discretion to determine whether a Participant has ceased to provide services for purposes of the Plan and the effective date on
which the Participant ceased to provide services (the “Termination Date”).

 

“Unvested
Shares” means Shares that have not yet vested or are subject to a right of repurchase in favor of the Company (or any
successor thereto).

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