Document:

Document

Exhibit 10.1
SECOND MODIFICATION AGREEMENT

This SECOND MODIFICATION AGREEMENT (this "Agreement") is made to be effective as of December 28, 2020 (“Effective Date”), by and among [REDACTED], a [REDACTED] state chartered bank ("Lender"), SHARPS COMPLIANCE, INC. OF TEXAS, a Texas corporation d/b/a Sharps Compliance, Inc. ("Borrower"), ALPHA BIO/MED SERVICES, LLC, a Pennsylvania limited liability company ("Alpha"), BIO-TEAM MOBILE LLC, a Pennsylvania limited liability company ("Bio-Team"), CITIWASTE, LLC, a New York limited liability company ("Citiwaste"), SHARPS ENVIRONMENTAL SERVICES, INC., a Delaware corporation d/b/a Sharps Environmental Services of Texas, Inc. ("Environmental"), and SHARPS PROPERTIES, LLC, a Pennsylvania limited liability company (“Properties”) (each of Alpha, Bio-Team, CitiWaste, Environmental, and Properties are a "Guarantor" and collectively, the "Guarantors"). Capitalized terms used herein but not defined shall be given the meanings assigned to them in the Loan Documents (as herein defined).  

W I T N E S S E T H:

A.        On March 29, 2017, Lender extended credit to Borrower in the revolving line of credit amount of $6,000,000.00 and a guidance line in the amount of $8,000,000.00 (the "Loan"), as evidenced by that certain Loan Agreement, executed by Borrower and Lender (the "Original Loan Agreement"), that certain Commercial Note, payable to the order of Lender (the "Note"), and secured by that certain (i) Security Agreement  executed by Borrower, in favor of Lender (the "Borrower Security Agreement"), (ii) Security Agreement executed by Sharps Environmental Services, Inc., a Delaware corporation d/b/a Sharps Environmental Services of Texas, Inc. ("Sharps Environmental"), in favor of Lender (the "Sharps Environmental Security Agreement"), (iii) Security Agreement executed by Alpha, in favor of Lender (the "Alpha Security Agreement"), (iv) Security Agreement executed by Bio-Team, in favor of Lender (the "Bio-Team Security Agreement"), and (v) Security Agreement executed by Citiwaste, in favor of Lender (the "Citiwaste Security Agreement").

B.         Borrower caused Guarantors to execute and deliver to Lender that certain Continuing Guaranty ("Guaranty Agreement"), dated of even date with the Note, guaranteeing payment of the Note and all the other monetary obligations contained in the Loan Documents, as hereinafter defined, and performance by Borrower of the other obligations as set forth in the Loan Documents.

C.         Borrower and Lender executed and delivered that certain First Modification of Loan Documents, dated June 29, 2018 (the "First Modification"), amending certain terms and conditions of the Note, the Original Loan Agreement, and the other related documents executed by Borrower or third parties pertaining to, evidencing, modifying or securing the Loan (collectively with the First Modification, the "Loan Documents")

D.        Lender, Borrower and Guarantors now propose to further modify certain of the terms and provisions of the Loan Documents.

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lender, Borrower and Guarantors hereby agree as follows:

1.Recitals.  The above recitals are incorporated herein and made a part hereof for all purposes.  Lender, Borrower and Guarantors each hereby acknowledges the above recitals to be true and correct as of the date each executes this Agreement.

2.Loan Amount.  As of the Effective Date, the outstanding principal balance of the 2017 Term Loan (as hereinafter defined) is $693,333.51, the outstanding principal amount of Revolving Advances is $0.00, and the outstanding principal amount of Term Loan Advances is $0.00. Borrower must continue to make principal and interest payments in accordance with the Loan Documents, as modified by this Agreement.

    3.   Amendments to Notes.  Notwithstanding anything in the Notes to the contrary, if the One Month ICE LIBOR as reported by Bloomberg, L.P or other rate reporting source is less than one-half percent (0.50%), then it shall be deemed to be one-half percent (0.50%).  Further, the definition of “Maturity Date” as used and defined in the Revolving Note is hereby deleted and replaced with December [___], 2023.

      4.   Amendment to Section 1.1 of the Loan Agreement.  

a.Section 1.1 of the Loan Agreement shall be amended by adding the following definitions:
"2017 Commercial Note" means that certain Commercial Note dated March 29, 2017, executed by Borrower for the benefit of Lender, in the original principal amount of $2,600,000.00, evidencing the 2017 Term Loan.

"2017 Term Loan" means that certain term loan in the principal amount of $2,600,000.00, in accordance with the terms of the 2017 Commercial Note.

"CARES Act" means the Coronavirus Aid, Relief, and Economic Security Act, and all applicable rules and regulations, as may be amended or supplemented.

"CARES Act PPP Loan" means the unsecured loan in the principal amount of up to $2,183,187.01 issued by Lender to Borrower pursuant to the Paycheck Protection Program of the CARES Act.

      b. The following defined terms in Section 1.1 of the Loan Agreement are hereby amended and restated in their respective entireties as follows:

"Commitment" means the obligation of Lender to make Revolving Advances and issue Letters of Credit hereunder in an aggregate principal amount at any time outstanding up to but not exceeding $6,000,000.00, as such amount may be reduced pursuant to Section 2.8 or otherwise or increased pursuant to Section 2.16.

"Debt" means for any Person (a) all indebtedness, whether or not represented by bonds, debentures, notes, securities or other evidences of indebtedness, for the repayment of money borrowed, including, with respect to Borrower, the indebtedness evidenced by the Note and all other indebtedness of Borrower to Lender, (b) indebtedness and obligations arising in connection with Rate Management Transactions, (c) all indebtedness representing deferred payment of the purchase price of property or assets, (d) Capitalized Lease Obligations, (e) all indebtedness under guaranties, endorsements, assumptions or other contingent obligations, in respect of, or to purchase or otherwise acquire, indebtedness of others, (f) all indebtedness secured by a Lien  existing on property owned, subject to such Lien, whether or not the indebtedness secured thereby shall have been assumed by the owner thereof, and (g) any obligation to redeem or repurchase any of such Person's capital stock, partnership or membership interests or other ownership interests as applicable. Debt shall not include the CARES Act PPP Loan, except that if any portion of the CARES Act PPP Loan is not forgiven or is not eligible for forgiveness, the unforgiven or ineligible portion will be included as Debt for purposes of this definition and will be 

deemed to have been incurred as of the date on which Borrower received the proceeds of the CARES Act PPP Loan.

"EBITDA" means for Parent and its Subsidiaries, on a consolidated basis for any period, the sum of (a) Net Income for such period, plus (b) without duplication and to the extent deducted in determining such Net Income (i) Interest Expense for such period, plus (ii) Income Tax Expense for such period, plus (iii) depreciation and amortization for such period, plus (iv) all other non-cash and/or non-recurring expenses subject to approval of Lender, plus (v) any proceeds of the CARES Act PPP Loan, except that if any portion of the CARES Act PPP Loan is not forgiven or is not eligible for forgiveness, the proceeds of the unforgiven or ineligible portion will not be included herein, effective as of the date Borrower receives the proceeds of the CARES Act PPP Loan, provided that under no circumstance will any proceeds of the CARES Act PPP Loan be counted as income more than once, and less (vi) all other non-cash and/or non-recurring income. Non-cash and/or non-recurring expenses include, among other items, one-time acquisition costs, including legal fees, investment banker fees, accounting fees and recording fees. For the avoidance of doubt, EBITDA shall include all historical cash flow for such period of any acquired entity that becomes a Subsidiary during such period.

"Eligible Accounts" shall mean “Accounts” (as that term is defined in the Texas Uniform Commercial Code) owned by Borrower subject to a first security interest in favor of Lender that are acceptable and approved by Lender from time to time as accounts eligible to be used as a basis for a Revolving Advance to Borrower.  Without limiting Lender’s discretion to deem an account unacceptable, the following shall not be an Eligible Account: (i) any account which has remained unpaid for more than 90 days from the date of invoice, (ii) all accounts due from any particular Account Debtor when that portion of the Account Debtor’s which has remained unpaid for more than 90 days from the date of invoice exceeds 10% of the total amount outstanding from that particular account debt, unless approved by Lender,  (iii) any account subject to a set off or disputed by the Account Debtor of the account, (iv) any account with respect to which Borrower has extended the time for payment without the consent of Lender, (v) any account owed by an Account Debtor who is not located within the United States within the meaning of the Texas Uniform Commercial Code or which is not organized under the laws of the United States, unless secured by an acceptable letter of credit subject to a first security interest in favor of Lender, (vi) any account which is owed by any parent, subsidiary, affiliate, related company or shareholder of Borrower, (vii) any account due from the United States or any agency thereof, (viii) any account in which Borrower owes or will owe any obligation to the Account Debtor of such account, (ix) any account which separately or aggregated with other account(s) represents a relatively large concentration to one company, typically greater than 20% of total accounts unless approved by Lender; (x) any account due on consigned goods, and (xi) any account arising from retainage(s) against billing(s); and (xii) any account due arising out of a bonded contract or any other contract which could create, or result in the creation of a lien on such account. Notwithstanding the foregoing, Eligible Accounts shall include (a) Accounts not to exceed $500,000.00 at any time that are owed by the United States of America or any department, agency or instrumentality thereof (the "Government Receivables") and for which the Federal Assignment of Claims Act shall have been complied with; and (b) Accounts owed by   the following entities: [REDACTED]; provided, however, that such Accounts shall not exceed thirty percent (30%) of the Borrowing Base. Upon the request of Lender and each time that Borrower requests a Revolving Advance, Borrower shall furnish Lender a certificate in such form as Lender may require along with a current aging of accounts evidencing the amounts owed thereon and the parties liable thereon.

"Net Debt" means, for Parent and its Subsidiaries for any period, the sum of (a) all outstanding Debt, minus (b) the aggregate cash held by Parent and its Subsidiaries greater than $2,000,000.00.

"Notes" means the 2017 Commercial Note, the Revolving Note and the Term Notes.

"Term Loan Final Advance Date" means December [___], 2023.

"Termination Date" means 11:00 a.m. on December [___], 2023, or such earlier date on which the Commitment terminates as provided in this Agreement.

5.  Amendment to Article II of the Loan Agreement.  Article II of the Loan Agreement shall be amended by adding a new Section 2.16:

Section 2.16     Request for Increase. 

(a)     Increases in Commitment.  At any time after the Closing Date, provided there exists no Unmatured Event of Default or Event of Default, upon notice to the Lender, the Borrower may  request an increase in the maximum Commitments hereunder by an amount (for all such requests) not exceeding $4,000,000.00 such that the Commitment shall not exceed $10,000,000.00; provided that (i) any such request for an increase shall be in a minimum amount of $1,000,000 (or a lesser amount in the event such amount represents all remaining availability under this Section), and (ii) the Borrower may make a maximum of two such requests. 
 
(b)    Effective Date.  If the maximum Commitment hereunder is increased in accordance with this Section, the Lender and the Borrower shall determine the effective date of such increase (the "Increase Effective Date"), which shall in no event be less than sixty (60) days from the date of delivery of the notice to the Lender described in Section 2.16(a) unless the Lender agrees in its sole discretion to an earlier date.

(c)    Conditions to Effectiveness of Increase.  As a condition precedent to such increase, the Borrower shall deliver to the Lender a new promissory note amending and restating the Revolving Note and a certificate of each Loan Party dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of such Loan Party (x) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such increase, (y) in the case of Borrower, certifying that, before and after giving effect to such increase, (A) the representations and warranties contained in Article VII and the other Loan Documents are true and correct on and as of the Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Section 2.16, the representations and warranties contained in Section 7.2 shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 8.1, and (B) no Unmatured Event of Default or Event of Default exists.  Each increase shall constitute Obligations hereunder, and secured pursuant to the Loan Documents on a pari passu basis with the other Obligations hereunder.

      6.      Amendment to Article III of the Loan Agreement.  Article III of the Loan Agreement shall be amended by adding a new Section 3.8:

Section 3.8       2017 Term Loan. 

(a)     Interest.  The unpaid principal amount of the 2017 Term Loan (and, therefore, the 2017 Term Note) shall bear interest prior to maturity at a varying rate per annum equal from day to day to the lesser of (a) the Maximum Rate or (b) the Adjusted LIBOR Rate, and each change in the rate of interest charged on the 2017 Term Loan shall become effective, without notice to Borrower or any Obligated Party, on the effective date of each change in the One Month ICE 

LIBOR or the Maximum Rate, as the case may be; provided, however, if at any time the rate of  interest specified in clause (b) preceding shall exceed the Maximum Rate, thereby causing the interest on the 2017 Term Loan to be limited to the Maximum Rate, then any subsequent reduction in the One Month ICE LIBOR shall not reduce the rate of interest on the 2017 Term Loan below the Maximum Rate until the aggregate amount of interest actually accrued on the 2017 Term Loan equals the aggregate amount of interest which would have accrued on the 2017 Term Loan if the interest rate specified in clause (b) preceding had at all times been in effect. Notwithstanding the foregoing, if an Event of Default has occurred and is continuing, at the option of Lender, the outstanding principal of the 2017 Term Loan shall bear interest at the Default Rate.

(b)     Repayment of Principal and Interest.  The principal of and interest on the 2017 Term Loan shall be due and payable in accordance with the 2017 Term Note.

       7.     Amendment to Article VII of the Loan Agreement.  Article VII of the Loan Agreement shall be amended by adding a new Section 7.22:

7.22     CARES Act PPP Loan.  Borrower shall (a) comply with the terms and conditions applicable to the CARES Act PPP Loan, (b) use the proceeds of the CARES Act PPP Loan only for allowable purposes (whether or not forgivable) under the CARES Act, (c) use commercially reasonable efforts to conduct its business in a manner that maximizes the amount of the CARES Act PPP Loan that is forgiven, (d) keep necessary and appropriate records relating to the use of the CARES Act PPP Loan (and promptly provide such records to Lender upon Lender’s reasonable request), and (e) promptly take all applicable actions to apply for forgiveness of the CARES Act PPP Loan in accordance with the regulations implementing Section 1106 of the CARES Act (and promptly provide documentation, and status, of such forgiveness to Lender upon Lender’s reasonable request and, in any event, within five business days of the final determination thereof).

      8.     Patriot Act.  IMPORTANT NOTICE: to help the government fight the funding of terrorism and money laundering activities, the U.S.A. Patriot Act requires all banks to obtain and verify the identity of each person or business that opens an account.  When Borrower opens an account, Lender will ask Borrower for information that will allow Lender to properly identify Borrower and Lender will verify that information.  If Lender cannot properly verify identity within thirty (30) calendar days, Lender reserves the right to deem all of the balance and accrued interest due and payable immediately.

      9.     Acknowledgment by Borrower.  Except as otherwise specified herein, the terms and provisions hereof shall in no manner impair, limit, restrict or otherwise affect the obligations of Borrower or any third party to Lender, as evidenced by the Loan Documents.  Borrower hereby acknowledges, agrees and represents that (i) Borrower is indebted to Lender pursuant to the terms of the Note as modified hereby; (ii) the liens, security interests and assignments created and evidenced by the Loan Documents are, respectively, valid and subsisting liens, security interests and assignments of the respective dignity and priority recited in the Loan Documents; (iii) there are no claims or offsets against, or defenses or counterclaims to, the terms or provisions of the Loan Documents, and the other obligations created or evidenced by the Loan Documents; (iv) Borrower has no claims, offsets, defenses or counterclaims arising from any of Lender's acts or omissions with respect to the Property, the Loan Documents or Lender's performance under the Loan Documents or with respect to the Property; (v) the representations and warranties contained in the Loan Documents are true and correct representations and warranties of Borrower and third parties, as of the date hereof; (vi) Borrower is in compliance with all covenants contained in the Loan Documents; and (vii) Lender is not in default and no event has occurred which, with the passage of time, giving of notice, or both, would constitute a default by Lender of Lender's obligations under the terms and provisions of the Loan Documents.  To the extent Borrower now has, or 

in the future possesses, any claims, offsets, defenses or counterclaims against Lender or the repayment of all or a portion of the Loan, whether known or unknown, fixed or contingent, same are hereby forever irrevocably waived and released in their entirety.

        10.  Joinder of Guarantors.  

(a)     Environmental and Properties each hereby unconditionally assumes all the obligations of a Guarantor under the terms of the Guaranty Agreement, the Loan Agreement, and the other Loan Documents, and each otherwise agrees to become a Guarantor under the terms of the Guaranty Agreement, the Loan Agreement, and the other Loan Documents, with the same force and effect as if it had been an original signatory to the Guaranty Agreement, the Loan Agreement, and the other Loan Documents.

(b)    provisions hereof, (ii) ratifies and confirms the Guaranty Agreement, including all interest and costs of collection, to and for the benefit of Lender, (iii) agrees that the Guaranty Agreement is and shall remain in full force and effect, and the terms of the Guaranty Agreement cover and pertain to the Loan, the Notes (as amended herein), and the other Loan Documents, as amended, (iv) acknowledges that there are no claims or offsets against, or defenses or counterclaims to, the terms and provisions of and the obligations created and evidenced by the Guaranty Agreement, (v) certifies that the representations and warranties contained in the Guaranty Agreement remain true and correct representations and warranties of each Guarantor and as of the date hereof, and (vi) acknowledges that Lender has satisfied and performed its covenants and obligations under the Guaranty Agreement and the Loan Documents (if any), and that no prior action or failure to act by or on behalf of, Lender has or will give rise to any cause of action or other claim against Lender for breach of the Guaranty Agreement, the Loan Documents or otherwise.

       11.  No Waiver of Remedies.  Except as may be expressly set forth herein, nothing contained in this Agreement shall prejudice, act as, or be deemed to be a waiver of any right or remedy available to Lender by reason of the occurrence or existence of any fact, circumstance or event constituting a default under the Note or the other Loan Documents.

       12. Costs and Expenses.  Contemporaneously with the execution and delivery hereof, Borrower shall pay, or cause to be paid, all costs and expenses incident to the preparation and execution hereof and the consummation of the transaction contemplated hereby, including, but not limited to, administrative fees of Lender and reasonable fees and expenses of legal counsel to Lender.

     13. Interest Limitation.  The Note and all Loan Documents are intended to be performed in accordance with, and only to the extent permitted by, all applicable usury laws.  If any provision hereof or of any of the other Loan Documents or the application thereof to any person or circumstance shall, for any reason and to any extent, be invalid or unenforceable, neither the application of such provision to any other person or circumstance nor the remainder of the instrument in which such provision is contained shall be affected thereby and shall be enforced to the greatest extent permitted by law.  It is expressly stipulated and agreed to be the intent of the holder of the Note to at all times comply with the usury and other applicable laws now or hereafter governing the interest payable on the indebtedness evidenced by the Note.  If the applicable law is ever revised, repealed or judicially interpreted so as to render usurious any amount called for under the Note or under any of the other Loan Documents, or contracted for, charged, taken, reserved or received with respect to the indebtedness evidenced by the Note, or if Lender's exercise of the option to accelerate the maturity of the Note, or if any prepayment by Borrower or prepayment agreement results (or would, if complied with, result) in Borrowers having paid, contracted for or been charged for any interest in excess of that permitted by law, then it is the express intent of Borrower and Lender that the Note and the other Loan Documents shall be limited to the extent necessary to prevent 

such result and all excess amounts theretofore collected by Lender shall be credited on the principal balance of the Note or, if fully paid, upon such other Indebtedness as shall then remaining outstanding (or, if the Note and all other Indebtedness have been paid in full, refunded to Borrower), and the provisions of the Note and the other Loan Documents shall immediately be deemed reformed and the amounts thereafter collectable hereunder and thereunder reduced, without the necessity of the execution of any new document, so as to comply with the then applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder or thereunder.  All sums paid, or agreed to be paid, by Borrower for the use, forbearance, detention, taking, charging, receiving or reserving of the indebtedness of Borrower to Lender under the Note or arising under or pursuant to the other Loan Documents shall, to the maximum extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full so that the rate or amount of interest on account of such indebtedness does not exceed the usury ceiling from time to time in effect and applicable to such indebtedness for so long as such indebtedness is outstanding.  To the extent federal law permits Lender to contract for, charge or receive a greater amount of interest, Lender will rely on federal law instead of the Texas Finance Code for the purpose of determining the Maximum Lawful Rate (as defined in the Note).  Additionally, to the maximum extent permitted by applicable law now or hereafter in effect, Lender may, at its option and from time to time, implement any other method of computing the Maximum Lawful Rate under the Texas Finance Code or under other applicable law, by giving notice, if required, to Borrowers as provided by applicable law now or hereafter in effect.  Notwithstanding anything to the contrary contained herein or in any of the other Loan Documents, it is not the intention of Lender to accelerate the maturity of any interest that has not accrued at the time of such acceleration or to collect unearned interest at the time of such acceleration.

        14.  Additional Documentation.  From time to time, Borrower shall execute or procure and deliver to Lender such other and further documents and instruments evidencing, securing or pertaining to the Loan or the Loan Documents as shall be reasonably requested by Lender so as to evidence or effect the terms and provisions hereof.  Upon Lender's request, Borrower shall cause to be delivered to Lender an opinion of counsel, satisfactory to Lender as to form, substance and rendering attorney, opining to (i) the validity and enforceability of this Agreement and the terms and provisions hereof, and any other agreement executed in connection with the transaction contemplated hereby, (ii) the authority of Borrower, and any constituents of Borrower, to execute, deliver and perform its or their respective obligations under the Loan Documents, as hereby modified, and (iii) such other matters as reasonably requested by Lender.

        15. Effectiveness of the Loan Documents.  Except as expressly modified by the terms and provisions hereof, each of the terms and provisions of the Loan Documents are hereby ratified and shall remain in full force and effect; provided, however, that any reference in any of the Loan Documents to the Loan, the amount constituting the Loan, any defined terms, or to any of the other Loan Documents shall be deemed, from and after the date hereof, to refer to the Loan, the amount constituting the Loan, defined terms and to such other Loan Documents, as modified hereby.

      16. Governing Law.  THE TERMS AND PROVISIONS HEREOF SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN.

       17. Time.  Time is of the essence in the performance of the covenants contained herein and in the Loan Documents.

       18. Binding Agreement.  This Agreement shall be binding upon the successors and assigns of the parties hereto; provided, however, the foregoing shall not be deemed or construed to (i) permit, sanction, authorize or condone the assignment of all or any part of the Property or any of Borrower's rights, titles or interests in and to the Property or any rights, titles or interests in and to Borrower, except as expressly 

authorized in the Loan Documents; or (ii) confer any right, title, benefit, cause of action or remedy upon any person or entity not a party hereto, which such party would not or did not otherwise possess.

         19.  Headings.  The section headings hereof are inserted for convenience of reference only and shall in no way alter, amend, define or be used in the construction or interpretation of the text of such section.

        20. Construction.  Whenever the context hereof so requires, reference to the singular shall include the plural and likewise, the plural shall include the singular; words denoting gender shall be construed to mean the masculine, feminine or neuter, as appropriate; and specific enumeration shall not exclude the general, but shall be construed as cumulative of the general recitation.

         21.  Severability.  If any clause or provision of this Agreement is or should ever be held to be illegal, invalid or unenforceable under any present or future law applicable to the terms hereof, then and in that event, it is the intention of the parties hereto that the remainder of this Agreement shall not be affected thereby, and that in lieu of each such clause or provision of this Agreement that is illegal, invalid or unenforceable, such clause or provision shall be judicially construed and interpreted to be as similar in substance and content to such illegal, invalid or unenforceable clause or provision, as the context thereof would reasonably suggest, so as to thereafter be legal, valid and enforceable.

        22.  Inducement.  Borrower and Guarantors hereby acknowledge and agree that each has entered into this Agreement of its own free will and accord and in accordance with its own judgment after advice of its own legal counsel, and none of the Borrower or Guarantors has been induced to enter into this Agreement by any statement, act, or representation of any kind or character on the part of the parties hereto, except as expressly set forth in this Agreement.

       23. Counterparts.  To facilitate execution, this Agreement may be executed in as many counterparts as may be convenient or required.  It shall not be necessary that the signature and acknowledgment of, or on behalf of, each party, or that the signature and acknowledgment of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single instrument.  It shall not be necessary in making proof of this Agreement to produce or account for more than a single counterpart containing the respective signatures and acknowledgment of, or on behalf of, each of the parties hereto.  Any signature and acknowledgment page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures and acknowledgments thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature and acknowledgment pages.

       24. Release.  Borrower, each Unlimited Guarantor, and each Limited Guarantor hereby release and forever discharge Lender from any and all claims, demands, liabilities, losses or causes of action, known or unknown, fixed or contingent, Borrower, each Unlimited Guarantor or each Limited Guarantor may have directly against Lender, as of 12:00 midnight, Dallas, Texas time, on the date of this Agreement, that is a part of, concerns or in any manner relates to the Loan, this Agreement or the Loan Documents, including but not limited to, claims for tortious interference with contractual relations, breach of contract, usury, breach of fiduciary duty, bad faith, negligence, negligent misrepresentation, defamation, business disparagement, promissory estoppel, or similar causes of action, except for, any and all actions, suits, proceedings brought by Borrower to recover damages they incurred in any action, suit or proceeding brought by a third party against them.

        25. ENTIRE AGREEMENT.  THIS AGREEMENT AND THE OTHER DOCUMENTS, IF ANY, HEREIN REQUIRED TO BE EXECUTED REPRESENT THE FINAL AGREEMENT OR AGREEMENTS BETWEEN THE PARTIES AS TO THE SUBJECT MATTER HEREOF AND THEREOF, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, 

CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.  THIS INSTRUMENT MAY BE AMENDED ONLY BY AN INSTRUMENT IN WRITING EXECUTED BY THE PARTIES HERETO.
[The remainder of this page is intentionally left blank.  The signature pages follow.]

EXECUTED to be effective as of the date first above written.

LENDER:  [REDACTED], a [REDACTED]state
chartered bank

By:                                                                               
Name:      [REDACTED] 
Title:         Senior Vice President

BORROWER:  SHARPS COMPLIANCE, INC. OF 
TEXAS,
a Texas corporation d/b/a Sharps Compliance, Inc.

By:  /s/ David P. Tusa
Name: David P. Tusa
Title:   Chief Executive Officer and President

SHARPS ENVIRONMENTAL SERVICES, INC.,
a Delaware corporation d/b/a Sharps Environmental
Services of Texas, Inc.

By:  /s/ David P. Tusa
Name: David P. Tusa
Title:   Chief Executive Officer and President

GUARANTORS:  ALPHA BIO/MED SERVICES,
LLC,
a Pennsylvania limited liability company

By:  /s/ David P. Tusa
Name: David P. Tusa
Title:   Chief Executive Officer and President

BIO-TEAM MOBILE LLC,
a Pennsylvania limited liability company

By:  /s/ David P. Tusa

Name: David P. Tusa
Title:   Chief Executive Officer and President

 CITIWASTE, LLC,
a New York limited liability company

By:  /s/ David P. Tusa
Name: David P. Tusa
Title:   Chief Executive Officer and President

SHARPS ENVIRONMENTAL SERVICES, INC.,
a Delaware corporation d/b/a Sharps Environmental
Services of Texas, Inc.

By:  /s/ David P. Tusa
Name: David P. Tusa
Title:   Chief Executive Officer and President

SHARPS PROPERTIES, LLC,
a Pennsylvania limited liability company

By:  /s/ David P. Tusa
Name: David P. Tusa
Title:   Chief Executive Officer and PresidentExhibit 10.1

 

ISPECIMEN INC.

 

2010 STOCK INCENTIVE PLAN

 

1.             Purpose

 

The purpose of this 2010 Stock Incentive
Plan (the “Plan”) of iSpecimen Inc., a Delaware corporation (the “Company”), is to advance
the interests of the Company’s stockholders by enhancing the Company’s ability to attract, retain and motivate persons
who are expected to make important contributions to the Company and by providing such persons with equity ownership opportunities
and performance-based incentives that are intended to better align the interests of such persons with those of the Company’s
stockholders. Except where the context otherwise requires, the term “Company” shall include any of the Company’s
present or future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Internal Revenue Code of 1986,
as amended, and any regulations promulgated thereunder (the “Code”) and any other business venture (including,
without limitation, joint venture or limited liability company) in which the Company has a controlling interest, as determined
by the Board of Directors of the Company (the “Board”).

 

2.             Eligibility

 

All of the Company’s employees, officers,
directors, consultants and advisors are eligible to be granted options, restricted stock, restricted stock units (“RSUs”)
and other stock-based awards (each, an “Award”) under the Plan. Each person who receives an Award under the
Plan is deemed a “Participant”.

 

3.             Administration and Delegation

 

(a)              
Administration by Board of Directors. The Plan will be administered by the Board. The Board shall have authority
to grant Awards and to adopt, amend, and repeal such administrative rules, guidelines, and practices relating to the Plan as it
shall deem advisable. The Board may construe and interpret the terms of the Plan and any Award agreements entered into under the
Plan. The Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner
and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such expediency.
All decisions by the Board shall be made in the Board’s sole discretion and shall be final and binding on all persons having
or claiming any interest in the Plan or in any Award. No director or person acting pursuant to the authority delegated by the Board
shall be liable for any action or determination relating to or under the Plan made in good faith.

 

(b)              
Appointment of Committees. To the extent permitted by applicable law, the Board may delegate any or all of its powers
under the Plan to one or more committees or subcommittees of the Board (a “Committee”). All references in the
Plan to the “Board” shall mean the Board or a Committee of the Board to the extent that the Board’s powers or
authority under the Plan have been delegated to such Committee.

 

     

     

    

 

4.             Stock Available for Awards

 

(a)              
Number of Shares. Subject to adjustment under Section 8, Awards may be made under the Plan for up to 1,500,000 shares
of common stock, $.0001 par value per share, of the Company (the “Common Stock”). If any Award expires or is
terminated, surrendered or canceled without having been fully exercised, is forfeited in whole or in part (including as the result
of shares of Common Stock subject to such Award being repurchased by the Company at the original issuance price pursuant to a contractual
repurchase right), or results in any Common Stock not being issued, the unused Common Stock covered by such Award shall again be
available for the grant of Awards under the Plan. Further, shares of Common Stock tendered to the Company by a Participant to exercise
an Award shall be added to the number of shares of Common Stock available for the grant of Awards under the Plan. However, in the
case of Incentive Stock Options (as hereinafter defined), the foregoing provisions shall be subject to any limitations under the
Code. Shares issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares. At no
time while there is any Option (as defined below) outstanding and held by a Participant who was a resident of the State of California
on the date of grant of such Option, shall the total number of shares of Common Stock issuable upon exercise of all outstanding
options and the total number of shares provided for under any stock bonus or similar plan or agreement of the Company exceed the
applicable percentage as calculated in accordance with the conditions and exclusions of Section 260.140.45 of the California Code
of Regulations (the "California Regulations"), based on the shares of the Company which are outstanding at the
time the calculation is made.

 

(b)              
Substitute Awards. In connection with a merger or consolidation of an entity with the Company or the acquisition
by the Company of property or stock of an entity, the Board may grant Awards in substitution for any options or other stock or
stock-based awards granted by such entity or an affiliate thereof. Substitute Awards may be granted on such terms as the Board
deems appropriate in the circumstances, notwithstanding any limitations on Awards contained in the Plan. Substitute Awards shall
not count against the overall share limit set forth in Section 4(a), except as may be required by reason of Section 422 and related
provisions of the Code.

 

5.             Stock Options

 

(a)              
General. The Board may grant options to purchase Common Stock (each, an “Option”) and determine
the number of shares of Common Stock to be covered by each Option, the exercise price of each Option and the conditions and limitations
applicable to the exercise of each Option, including conditions relating to applicable federal or state securities laws, as it
considers necessary or advisable. An Option that is not intended to be an Incentive Stock Option (as hereinafter defined) shall
be designated a “Nonstatutory Stock Option”.

 

(b)              
Incentive Stock Options. An Option that the Board intends to be an “incentive stock option” as defined
in Section 422 of the Code (an “Incentive Stock Option”) shall only be granted to employees of the Company,
any of the Company's present or future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Code, and
any other entities the employees of which are eligible to receive Incentive Stock Options under the Code, and shall be subject
to and shall be construed consistently with the requirements of Section 422 of the Code. The Company shall have no liability to
a Participant, or any other party, if an Option (or any part thereof) that is intended to be an Incentive Stock Option is not an
Incentive Stock Option or for any action taken by the Board, including without limitation the conversion of an Incentive Stock
Option to a Nonstatutory Stock Option.

 

    2 

     

    

 

(c)           Exercise Price. The Board shall establish the exercise price of each Option and specify the exercise price in the
applicable option agreement. The exercise price shall be not less than 100% of the Fair Market Value (as defined below) on the
date the Option is granted.

 

(d)           Duration of Options. Each Option shall be exercisable at such times and subject to such terms and conditions as the
Board may specify in the applicable option agreement.

 

(e)           Exercise of Option. Options may be exercised by delivery to the Company of a written notice of exercise signed by
the proper person or by any other form of notice (including electronic notice) approved by the Board together with payment in full
as specified in Section 5(f) for the number of shares for which the Option is exercised. Shares of Common Stock subject to the
Option will be delivered by the Company as soon as practicable following exercise.

 

(f)            Payment Upon Exercise. Common Stock purchased upon the exercise of an Option granted under the Plan shall be paid
for as follows:

 

(1)              
in cash or by check, payable to the order of the Company;

 

(2)              
when the Common Stock is registered under the Securities Exchange Act of 1934 (the “Exchange Act”), except
as may otherwise be provided in the applicable option agreement, by (i) delivery of an irrevocable and unconditional undertaking
by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price and any required tax withholding
or (ii) delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions to a creditworthy broker
to deliver promptly to the Company cash or a check sufficient to pay the exercise price and any required tax withholding;

 

(3)              
when the Common Stock is registered under the Exchange Act and to the extent provided for in the applicable option agreement
or approved by the Board, in its sole discretion, by delivery (either by actual delivery or attestation) of shares of Common Stock
owned by the Participant valued at their fair market value as determined by (or in a manner approved by) the Board (“Fair
Market Value”), provided (i) such method of payment is then permitted under applicable law, (ii) such Common Stock, if
acquired directly from the Company, was owned by the Participant for such minimum period of time, if any, as may be established
by the Board in its discretion and (iii) such Common Stock is not subject to any repurchase, forfeiture, unfulfilled vesting or
other similar requirements;

 

(4)              
to the extent permitted by applicable law and provided for in the applicable option agreement or approved by the Board,
in its sole discretion, by (i) delivery of a promissory note of the Participant to the Company on terms determined by the Board,
or (ii) payment of such other lawful consideration as the Board may determine; or

 

(5)              
by any combination of the above permitted forms of payment.

 

    3 

     

    

 

6.             Restricted Stock; Restricted Stock Units

 

(a)              
General. The Board may grant Awards entitling recipients to acquire shares of Common Stock (“Restricted
Stock”), subject to the right of the Company to repurchase all or part of such shares at their issue price or other stated
or formula price from the recipient in the event that conditions specified by the Board in the applicable Award are not satisfied
prior to the end of the applicable restriction period or periods established by the Board for such Award. Instead of granting Awards
for Restricted Stock, the Board may grant Awards entitling the recipient to receive shares of Common Stock or cash to be delivered
at the time such Award vests (“Restricted Stock Units”) (Restricted Stock and Restricted Stock Units are each
referred to herein as a “Restricted Stock Award”).

 

(b)              
Terms and Conditions for All Restricted Stock Awards. The Board shall determine the terms and conditions of a Restricted
Stock Award, including the conditions for vesting and repurchase (or forfeiture) and the issue price.

 

(c)              
Additional Provisions Relating to Restricted Stock.

 

(1)              
Dividends. Participants holding shares of Restricted Stock will be entitled to all ordinary cash dividends
paid with respect to such shares, unless otherwise provided by the Board. Unless otherwise provided, by the Board, if any dividends
or distributions are paid in shares, or consist of a dividend or distribution to holders of Common Stock other than an ordinary
cash dividend, the shares, cash or other property will be subject to the same restrictions on transferability and forfeitability
as the shares of Restricted Stock with respect to which they were paid.

 

(2)              
Stock Certificates. The Company may require that any stock certificates issued in respect of shares of Restricted
Stock shall be deposited in escrow by the Participant, together with a stock power endorsed in blank, with the Company (or its
designee). At the expiration of the applicable restriction periods, the Company (or such designee) shall deliver the certificates
no longer subject to such restrictions to the Participant or if the Participant has died, to the beneficiary designated, in a manner
determined by the Board, by a Participant to receive amounts due or exercise rights of the Participant in the event of the Participant’s
death (the “Designated Beneficiary”). In the absence of an effective designation by a Participant, “Designated
Beneficiary” shall mean the Participant’s estate.

 

7.             Other Stock-Based Awards

 

Other Awards of shares of Common Stock,
and other Awards that are valued in whole or in part by reference to, or are otherwise based on, shares of Common Stock or other
property, may be granted hereunder to Participants (“Other Stock-Based Awards”), including without limitation
stock appreciation rights (“SARs”) and Awards entitling recipients to receive shares of Common Stock to be delivered
in the future. Such Other Stock-Based Awards shall also be available as a form of payment in the settlement of other Awards granted
under the Plan or as payment in lieu of compensation to which a Participant is otherwise entitled. Other Stock-Based Awards may
be paid in shares of Common Stock or cash, as the Board shall determine. Subject to the provisions of the Plan, the Board shall
determine the terms and conditions of each Other Stock-Based Award, including any purchase price applicable thereto.

 

    4 

     

    

 

8.             Adjustments for Changes in Common Stock and Certain Other Events

 

(a)              
Changes in Capitalization. In the event of any stock split, reverse stock split, stock dividend, recapitalization,
combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any dividend
or distribution to holders of Common Stock other than an ordinary cash dividend, (i) the number and class of securities available
under this Plan, (ii) the number and class of securities and exercise price per share of each outstanding Option, (iii) the number
of shares subject to and the repurchase price per share subject to each outstanding Restricted Stock Award, and (iv) the terms
of each other outstanding Award shall be equitably adjusted by the Company (or substituted Awards may be made, if applicable) in
the manner determined by the Board. Without limiting the generality of the foregoing, in the event the Company effects a split
of the Common Stock by means of a stock dividend and the exercise price of and the number of shares subject to an outstanding Option
are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), then an
optionee who exercises an Option between the record date and the distribution date for such stock dividend shall be entitled to
receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such Option exercise,
notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend.

 

(b)           Reorganization Events.

 

(1)              
Definition. A “Reorganization Event” shall mean: (a) any merger or consolidation of the
Company with or into another entity as a result of which all of the Common Stock of the Company is converted into or exchanged
for the right to receive cash, securities or other property or is cancelled, (b) any exchange of all of the Common Stock of the
Company for cash, securities or other property pursuant to a share exchange transaction or (c) any liquidation or dissolution
of the Company.

 

(2)              
Consequences of a Reorganization Event on Awards Other than Restricted Stock Awards. In connection with a
Reorganization Event, the Board may take any one or more of the following actions as to all or any (or any portion of) outstanding
Awards other than Restricted Stock Awards on such terms as the Board determines: (i) provide that Awards shall be assumed,
or substantially equivalent Awards shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof),
(ii) upon written notice to a Participant, provide that the Participant’s unexercised Awards will terminate immediately
prior to the consummation of such Reorganization Event unless exercised by the Participant within a specified period following
the date of such notice, (iii) provide that outstanding Awards shall become exercisable, realizable, or deliverable, or restrictions
applicable to an Award shall lapse, in whole or in part prior to or upon such Reorganization Event, (iv) in the event of a
Reorganization Event under the terms of which holders of Common Stock will receive upon consummation thereof a cash payment for
each share surrendered in the Reorganization Event (the “Acquisition Price”), make or provide for a cash payment
to a Participant equal to the excess, if any, of (A) the Acquisition Price times the number of shares of Common Stock subject
to the Participant’s Awards (to the extent the exercise price does not exceed the Acquisition Price) over (B) the aggregate
exercise price of all such outstanding Awards and any applicable tax withholdings, in exchange for the termination of such Awards,
(v) provide that, in connection with a liquidation or dissolution of the Company, Awards shall convert into the right to receive
liquidation proceeds (if applicable, net of the exercise price thereof and any applicable tax withholdings) and (vi) any combination
of the foregoing. In taking any of the actions permitted under this Section 8(b), the Board shall not be obligated by the Plan
to treat all Awards, all Awards held by a Participant, or all Awards of the same type, identically.

 

    5 

     

    

 

For purposes of clause (i) above, an
Option shall be considered assumed if, following consummation of the Reorganization Event, the Option confers the right to purchase,
for each share of Common Stock subject to the Option immediately prior to the consummation of the Reorganization Event, the consideration
(whether cash, securities or other property) received as a result of the Reorganization Event by holders of Common Stock for each
share of Common Stock held immediately prior to the consummation of the Reorganization Event (and if holders were offered a choice
of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided,
however, that if the consideration received as a result of the Reorganization Event is not solely common stock of the acquiring
or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation,
provide for the consideration to be received upon the exercise of Options to consist solely of common stock of the acquiring or
succeeding corporation (or an affiliate thereof) equivalent in value (as determined by the Board) to the per share consideration
received by holders of outstanding shares of Common Stock as a result of the Reorganization Event.

 

(3)              
Consequences of a Reorganization Event on Restricted Stock Awards. Upon the occurrence of a Reorganization
Event other than a liquidation or dissolution of the Company, the repurchase and other rights of the Company under each outstanding
Restricted Stock Award shall inure to the benefit of the Company’s successor and shall, unless the Board determines otherwise,
apply to the cash, securities or other property which the Common Stock was converted into or exchanged for pursuant to such Reorganization
Event in the same manner and to the same extent as they applied to the Common Stock subject to such Restricted Stock Award. Upon
the occurrence of a Reorganization Event involving the liquidation or dissolution of the Company, except to the extent specifically
provided to the contrary in the instrument evidencing any Restricted Stock Award or any other agreement between a Participant and
the Company, all restrictions and conditions on all Restricted Stock Awards then outstanding shall automatically be deemed terminated
or satisfied.

 

9.             General Provisions Applicable to Awards

 

(a)              
Transferability of Awards. Except as the Board may otherwise determine or provide in an Award, Awards shall not be
sold, assigned, transferred, pledged or otherwise encumbered by the person to whom they are granted, either voluntarily or by operation
of law, except by will or the laws of descent and distribution or, other than in the case of an Incentive Stock Option, pursuant
to a qualified domestic relations order, and, during the life of the Participant, shall be exercisable only by the Participant.
References to a Participant, to the extent relevant in the context, shall include references to authorized transferees.

 

    6 

     

    

 

(b)              
Documentation. Each Award shall be evidenced in such form (written, electronic or otherwise) as the Board shall determine.
Each Award may contain terms and conditions in addition to those set forth in the Plan.

 

(c)              
Board Discretion. Except as otherwise provided by the Plan, each Award may be made alone or in addition or in relation
to any other Award. The terms of each Award need not be identical, and the Board need not treat Participants uniformly.

 

(d)              
Termination of Status. The Board shall determine the effect on an Award of the disability, death, termination or
other cessation of employment, authorized leave of absence or other change in the employment or other status of a Participant and
the extent to which, and the period during which, the Participant, or the Participant’s legal representative, conservator,
guardian or Designated Beneficiary, may exercise rights under the Award.

 

(e)              
Withholding. The Participant must satisfy all applicable federal, state, and local or other income and employment
tax withholding obligations before the Company will deliver stock certificates or otherwise recognize ownership of Common Stock
under an Award. The Company may decide to satisfy the withholding obligations through additional withholding on salary or wages.
If the Company elects not to or cannot withhold from other compensation, the Participant must pay the Company the full amount,
if any, required for withholding or have a broker tender to the Company cash equal to the withholding obligations. Payment of withholding
obligations is due before the Company will issue any shares on exercise or release from forfeiture of an Award or, if the Company
so requires, at the same time as is payment of the exercise price unless the Company determines otherwise. If provided for in an
Award or approved by the Board in its sole discretion, a Participant may satisfy such tax obligations in whole or in part by delivery
of shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their Fair Market Value;
provided, however, except as otherwise provided by the Board, that the total tax withholding where stock is being used to satisfy
such tax obligations cannot exceed the Company’s minimum statutory withholding obligations (based on minimum statutory withholding
rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income). Shares
surrendered to satisfy tax withholding requirements cannot be subject to any repurchase, forfeiture, unfulfilled vesting or other
similar requirements.

 

(f)            Amendment of Award.

 

(1)              
The Board may amend, modify or terminate any outstanding Award, including but not limited to, substituting therefor another
Award of the same or a different type, changing the date of exercise or realization, and converting an Incentive Stock Option to
a Nonstatutory Stock Option. The Participant’s consent to such action shall be required unless (i) the Board determines that
the action, taking into account any related action, would not materially and adversely affect the Participant’s rights under
the Plan or (ii) the change is permitted under Section 8 hereof.

 

(2)              
The Board may, without stockholder approval, amend any outstanding Award granted under the Plan to provide an exercise price
per share that is lower than the then-current exercise price per share of such outstanding Award. The Board may also, without stockholder
approval, cancel any outstanding award (whether or not granted under the Plan) and grant in substitution therefor new Awards under
the Plan covering the same or a different number of shares of Common Stock and having an exercise price per share lower than the
then-current exercise price per share of the cancelled award.

 

    7 

     

    

 

(g)              
Conditions on Delivery of Stock. The Company will not be obligated to deliver any shares of Common Stock pursuant
to the Plan or to remove restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have
been met or removed to the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal
matters in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws
and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to
the Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable
laws, rules or regulations.

 

(h)              
Acceleration. The Board may at any time provide that any Award shall become immediately exercisable in full or in
part, free of some or all restrictions or conditions, or otherwise realizable in full or in part, as the case may be.

 

10.           Miscellaneous

 

(a)              
No Right To Employment or Other Status. No person shall have any claim or right to be granted an Award, and the grant
of an Award shall not be construed as giving a Participant the right to continued employment or any other relationship with the
Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant
free from any liability or claim under the Plan, except as expressly provided in the applicable Award.

 

(b)              
No Rights As Stockholder. Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary
shall have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to an Award until
becoming the record holder of such shares.

 

(c)              
Effective Date and Term of Plan. The Plan shall become effective on the date on which it is adopted by the Board.
No Awards shall be granted under the Plan after the expiration of 10 years from the earlier of (i) the date on which the Plan was
adopted by the Board or (ii) the date the Plan was approved by the Company’s stockholders, but Awards previously granted
may extend beyond that date.

 

(d)              
Amendment of Plan. The Board may amend, suspend or terminate the Plan or any portion thereof at any time; provided
that if at any time the approval of the Company’s stockholders is required as to any modification or amendment under Section
422 of the Code or any successor provision with respect to Incentive Stock Options, the Board may not effect such modification
or amendment without such approval. Unless otherwise specified in the amendment, any amendment to the Plan adopted in accordance
with this Section 10(d) shall apply to, and be binding on the holders of, all Awards outstanding under the Plan at the time the
amendment is adopted, provided the Board determines that such amendment does not materially and adversely affect the rights of
Participants under the Plan.

 

    8 

     

    

 

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

 

(f)               
Compliance with Code Section 409A. No Award shall provide for deferral of compensation that does not comply with
Section 409A of the Code, unless the Board, at the time of grant, specifically provides that the Award is not intended to comply
with Section 409A of the Code. The Company shall have no liability to a Participant, or any other party, if an Award that is intended
to be exempt from, or compliant with, Section 409A is not so exempt or compliant or for any action taken by the Board.

 

(g)              
Governing Law. The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance
with the laws of the State of Delaware, excluding choice-of-law principles of the law of such state that would require the application
of the laws of a jurisdiction other than such state.

 

    9

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