Document:

Exhibit 10.39

 

ALBANY
MOLECULAR RESEARCH, INC.

 

THIRD
AMENDED 2008 STOCK OPTION AND INCENTIVE PLAN

 

SECTION
1.            GENERAL PURPOSE OF THE PLAN; DEFINITIONS

 

The name of the plan is the Albany Molecular
Research, Inc. Third Amended 2008 Stock Option and Incentive Plan (the “Plan”). The purpose of the Plan is to encourage
and enable the officers, employees, Non-Employee Directors and other key persons (including consultants and prospective employees)
of Albany Molecular Research, Inc. (the “Company”) and its Subsidiaries upon whose judgment, initiative and efforts
the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. It is
anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification
of their interests with those of the Company and its stockholders, thereby stimulating their efforts on the Company’s behalf
and strengthening their desire to remain with the Company.

 

The following terms shall be defined as set
forth below:

 

“Act” means the Securities
Act of 1933, as amended, and the rules and regulations thereunder.

 

“Administrator” means either
the Board or the compensation committee of the Board or a similar committee performing the functions of the compensation committee
and which is comprised of not less than two Non-Employee Directors who are independent.

 

“Award” or “Awards,”
except where referring to a particular category of grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock
Options, Stock Appreciation Rights, Deferred Stock Awards, Restricted Stock Awards, Unrestricted Stock Awards, Cash-based Awards,
Performance Share Awards and Dividend Equivalent Rights.

 

“Award Agreement” means a
written or electronic agreement setting forth the terms and provisions applicable to an Award granted under the Plan. Each Award
Agreement is subject to the terms and conditions of the Plan.

 

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

 

“Cash-based Award” means
an Award entitling the recipient to receive a cash-denominated payment.

 

“Code” means the Internal
Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations.

 

“Covered Employee” means
an employee who is a “Covered Employee” within the meaning of Section 162(m) of the Code.

 

“Deferred Stock Award” means
an Award of phantom stock units to a grantee.

 

“Dividend Equivalent Right”
means an Award entitling the grantee to receive credits based on cash dividends that would have been paid on the shares of Stock
specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the
grantee.

 

“Effective Date” means the
date on which the Third Amended Plan is approved by stockholders as set forth in Section 20.

 

     

     

    

  

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

“Fair Market Value” of the
Stock on any given date means the fair market value of the Stock determined in good faith by the Administrator; provided, however,
that if the Stock is admitted to quotation on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”),
NASDAQ Global Market or another national securities exchange, the determination shall be made by reference to market quotations.
If there are no market quotations for such date, the determination shall be made by reference to the last date preceding such date
for which there are market quotations.

 

“Incentive Stock Option”
means any Stock Option designated and qualified as an “incentive stock option” as defined in Section 422 of the
Code.

 

“Non-Employee Director” means
a member of the Board who is not also an employee of the Company or any Subsidiary.

 

“Non-Qualified Stock Option”
means any Stock Option that is not an Incentive Stock Option.

 

“Option” or “Stock
Option” means any option to purchase shares of Stock granted pursuant to Section 5.

 

“Performance-based Award”
means any Restricted Stock Award, Deferred Stock Award, Performance Share Award or Cash-based Award granted to a Covered Employee
that is intended to qualify as “performance-based compensation” under Section 162(m) of the Code and the regulations
promulgated thereunder.

 

“Performance Criteria” means
the criteria that the Administrator selects for purposes of establishing the Performance Goal or Performance Goals for an individual
for a Performance Cycle. The Performance Criteria (which shall be applicable to the organizational level specified by the Administrator,
including, but not limited to, the Company or a unit, division, group, or Subsidiary of the Company) that will be used to establish
Performance Goals are limited to the following: earnings before interest, taxes, depreciation and amortization, net income (loss)
(either before or after interest, taxes, depreciation and/or amortization), changes in the market price of the Stock, economic
value-added, funds from operations or similar measure, sales or revenue, acquisitions or strategic transactions, operating income
(loss), cash flow (including, but not limited to, operating cash flow and free cash flow), return on capital, assets, equity, or
investment, stockholder returns, return on sales, gross or net profit levels, productivity, expense, margins, operating efficiency,
customer satisfaction, working capital, earnings (loss) per share of Stock, sales or market shares and number of customers, any
of which may be measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer
group.

 

“Performance Cycle” means
one or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the
attainment of one or more Performance Criteria will be measured for the purpose of determining a grantee’s right to and the
payment of a Restricted Stock Award, Deferred Stock Award, Performance Share Award or Cash-based Award.

 

“Performance Goals” means,
for a Performance Cycle, the specific goals established in writing by the Administrator for a Performance Cycle based upon the
Performance Criteria.

 

“Performance Share Award”
means an Award entitling the recipient to acquire shares of Stock upon the attainment of specified Performance Goals.

 

“Restricted Stock Award”
means an Award entitling the recipient to acquire, at such purchase price (which may be zero) as determined by the Administrator,
shares of Stock subject to such restrictions and conditions as the Administrator may determine at the time of grant.

 

     

     

    

 

“Sale Event” shall mean (i)
the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (ii)
a merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or exchanged for securities
of the successor entity and the holders of the Company’s outstanding voting power immediately prior to such transaction do
not own a majority of the outstanding voting power of the successor entity immediately upon completion of such transaction, or
(iii) the sale of all of the Stock of the Company to an unrelated person or entity.

 

“Sale Price” means the value
as determined by the Administrator of the consideration payable, or otherwise to be received by stockholders, per share of Stock
pursuant to a Sale Event.

 

“Section 409A” means Section
409A of the Code and the regulations and other guidance promulgated thereunder.

 

“Stock” means the Common
Stock, par value $0.01 per share, of the Company, subject to adjustments pursuant to Section 3.

 

“Stock Appreciation Right”
means an Award entitling the recipient to receive shares of Stock having a value equal to the excess of the Fair Market Value of
the Stock on the date of exercise over the exercise price of the Stock Appreciation Right multiplied by the number of shares of
Stock with respect to which the Stock Appreciation Right shall have been exercised.

 

“Subsidiary” means any corporation
or other entity (other than the Company) in which the Company has at least a 50 percent interest, either directly or indirectly.

 

“Ten Percent Owner” means
an employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10 percent
of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation.

 

“Unrestricted Stock Award”
means an Award of shares of Stock free of any restrictions.

 

SECTION
2.      ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS

 

		(a)	Administration of Plan. The Plan shall be administered by the Administrator.

 

		(b)	Powers of Administrator. The Administrator shall have the power and authority to grant Awards consistent with the terms
of the Plan, including the power and authority:

 

		(i)	to select the individuals to whom Awards may from time
to time be granted;

 

		(ii)	to determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Stock
Appreciation Rights, Restricted Stock Awards, Deferred Stock Awards, Unrestricted Stock Awards, Cash-based Awards, Performance
Share Awards and Dividend Equivalent Rights, or any combination of the foregoing, granted to any one or more grantees;

 

		(iii)	to determine the number of shares of Stock to be covered
by any Award;

 

		(iv)	to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms
of the Plan, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the form
of written instruments evidencing the Awards;

 

		(v)	subject to the limitations provided in the Plan, too accelerate at any time the exercisability or vesting of all or any portion
of any Award;

 

		(vi)	subject to the provisions of Section 5(a)(ii), to extend at any time the period in which Stock Options may be exercised;
and

 

     

     

    

 

		(vii)	at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own
acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related
written instruments); to make all determinations it deems advisable for the administration of the Plan; to decide all disputes
arising in connection with the Plan; and to otherwise supervise the administration of the Plan.

 

All decisions and interpretations of the Administrator
shall be binding on all persons, including the Company and Plan grantees.

 

		(c)	Delegation of Authority to Grant Options. Subject to applicable law, the Administrator, in its discretion, may delegate
to the Chief Executive Officer of the Company all or part of the Administrator’s authority and duties with respect to the
granting of Options, to individuals who are (i) not subject to the reporting and other provisions of Section 16 of the Exchange
Act and (ii) not Covered Employees. Any such delegation by the Administrator shall include a limitation as to the amount of Options
that may be granted during the period of the delegation and shall contain guidelines as to the determination of the exercise price
and the vesting criteria. The Administrator may revoke or amend the terms of a delegation at any time but such action shall not
invalidate any prior actions of the Administrator’s delegate or delegates that were consistent with the terms of the Plan.

 

		(d)	Award Agreement. Awards under the Plan shall be evidenced by Award Agreements that set forth the terms, conditions and
limitations for each Award which may include, without limitation, the term of an Award, the provisions applicable in the event
employment or service terminates, and the Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel
or rescind an Award.

 

		(e)	Indemnification. Neither the Board nor the Administrator, nor any member of either or any delegate thereof, shall be
liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and
the members of the Board and the Administrator (and any delegate thereof) shall be entitled in all cases to indemnification and
reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’
fees) arising or resulting therefrom to the fullest extent permitted by law and/or under the Company’s articles or bylaws
or any directors’ and officers’ liability insurance coverage which may be in effect from time to time and/or any indemnification
agreement between such individual and the Company.

 

		(f)	Foreign Award Recipients. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws
in other countries in which the Company and its Subsidiaries operate or have employees or other individuals eligible for Awards,
the Administrator, in its sole discretion, shall have the power and authority to: (i) determine which Subsidiaries shall be covered
by the Plan; (ii) determine which individuals outside the United States are eligible to participate in the Plan; (iii) modify the
terms and conditions of any Award granted to individuals outside the United States to comply with applicable foreign laws; (iv)
establish subplans and modify exercise procedures and other terms and procedures, to the extent the Administrator determines such
actions to be necessary or advisable (and such subplans and/or modifications shall be attached to this Plan as appendices); provided,
however, that no such subplans and/or modifications shall increase the share limitations contained in Section 3(a) hereof; and
(v) take any action, before or after an Award is made, that the Administrator determines to be necessary or advisable to
obtain approval or comply with any local governmental regulatory exemptions or approvals. Notwithstanding the foregoing, the Administrator
may not take any actions hereunder, and no Awards shall be granted, that would violate the Exchange Act or any other applicable
United States securities law, the Code, or any other applicable United States governing statute or law.

 

     

     

    

  

SECTION
3.            STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

 

		(a)	Stock Issuable. The maximum number of shares of Stock reserved and available for issuance under the Plan shall be 7,700,000
shares, subject to adjustment as provided in Section 3(b); provided that not more than 7,700,000 shares shall be issued in
the form of Incentive Stock Options. For purposes of this limitation, the shares of Stock underlying any Awards that are forfeited,
canceled or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under
the Plan. Shares tendered or held back upon exercise of an Option or settlement of an Award to cover the exercise price or tax
withholding shall not be available for future issuance under the Plan. In addition, upon exercise of Stock Appreciation Rights,
the gross number of shares exercised shall be deducted from the total number of shares remaining available for issuance under the
Plan. In the event the Company repurchases shares of Stock on the open market, such shares shall not be added to the shares of
Stock available for issuance under the Plan. Subject to such overall limitations, shares of Stock may be issued up to such maximum
number pursuant to any type or types of Award; provided, however, that Stock Options or Stock Appreciation Rights with respect
to no more than 500,000 shares of Stock may be granted to any one individual grantee during any one calendar year period. The shares
available for issuance under the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the Company.

 

		(b)	Changes in Stock. Subject to Section 3(c) hereof, if, as a result of any reorganization, recapitalization, reclassification,
stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding
shares of Stock are increased or decreased or are exchanged for a different number or kind of shares or other securities of the
Company, or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed
with respect to such shares of Stock or other securities, or, if, as a result of any merger or consolidation, sale of all or substantially
all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for securities of the Company
or any successor entity (or a parent or subsidiary thereof), the Administrator shall make an appropriate or proportionate adjustment
in (i) the maximum number of shares reserved for issuance under the Plan, including the maximum number of shares that may be issued
in the form of Unrestricted Stock Awards, Restricted Stock Awards, Deferred Stock Awards or Performance Share Awards, (ii) the
number of Stock Options or Stock Appreciation Rights that can be granted to any one individual grantee and the maximum number of
shares that may be granted under a Performance-based Award, (iii) the number and kind of shares or other securities subject to
any then outstanding Awards under the Plan, (iv) the repurchase price, if any, per share subject to each outstanding Restricted
Stock Award, (v) the number of Stock Options granted to Non-Employee Directors, and (vi) the price for each share subject to any
then outstanding Stock Options and Stock Appreciation Rights under the Plan, without changing the aggregate exercise price (i.e.,
the exercise price multiplied by the number of Stock Options and Stock Appreciation Rights) as to which such Stock Options and
Stock Appreciation Rights remain exercisable. The Administrator shall also make equitable or proportionate adjustments in the number
of shares subject to outstanding Awards and the exercise price and the terms of outstanding Awards to take into consideration cash
dividends paid other than in the ordinary course or any other extraordinary corporate event. Notwithstanding the foregoing, no
adjustment shall be made under this Section 3(b) if the Administrator determines that such action could cause any Award to fail
to satisfy the conditions of any applicable exception from the requirements of Section 409A or otherwise could subject the grantee
to the additional tax imposed under Section 409A in respect of an outstanding Award or constitute a modification, extension or
renewal of an Incentive Stock Option within the meaning of Section 424(h) of the Code. The adjustment by the Administrator
shall be final, binding and conclusive. No fractional shares of Stock shall be issued under the Plan resulting from any such adjustment,
but the Administrator in its discretion may make a cash payment in lieu of fractional shares.

 

     

     

    

  

		(c)	Mergers and Other Transactions. Except as the Administrator may otherwise specify with respect to particular Awards
in the relevant Award documentation, and in the discretion of the Administrator in the case of and subject to the consummation
of a Sale Event, all Options and Stock Appreciation Rights that are not exercisable immediately prior to the effective time of
the Sale Event shall become fully exercisable as of the effective time of the Sale Event, all other Awards with time-based vesting,
conditions or restrictions shall become fully vested and nonforfeitable as of the effective time of the Sale Event and all Awards
with conditions and restrictions relating to the attainment of performance goals may become vested and nonforfeitable in connection
with a Sale, unless, in any case, the parties to the Sale Event agree that Awards will be assumed or continued by the successor
entity. Upon the effective time of the Sale Event, the Plan and all outstanding Awards granted hereunder shall terminate, unless
provision is made in connection with the Sale Event in the sole discretion of the parties thereto for the assumption or continuation
of Awards theretofore granted by the successor entity, or the substitution of such Awards with new Awards of the successor entity
or parent thereof, with appropriate adjustment as to the number and kind of shares and, if appropriate, the per share exercise
prices, as such parties shall agree (after taking into account any acceleration hereunder). In the event of such termination, (i)
the Company shall have the option (in its sole discretion) to make or provide for a cash payment to the grantees holding Options
and Stock Appreciation Rights, in exchange for the cancellation thereof, in an amount equal to the difference between (A) the Sale
Price multiplied by the number of shares of Stock subject to outstanding Options and Stock Appreciation Rights (to the extent then
exercisable (after taking into account any acceleration hereunder) at prices not in excess of the Sale Price) and (B) the aggregate
exercise price of all such outstanding Options and Stock Appreciation Rights; or (ii) each grantee shall be permitted, within a
specified period of time prior to the consummation of the Sale Event as determined by the Administrator, to exercise all outstanding
Options and Stock Appreciation Rights held by such grantee.

 

		(d)	Substitute Awards. The Administrator may grant Awards under the Plan in substitution for stock and stock based awards
held by employees, directors or other key persons of another corporation in connection with the merger or consolidation of the
employing corporation with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or stock of
the employing corporation. The Administrator may direct that the substitute awards be granted on such terms and conditions as the
Administrator considers appropriate in the circumstances. Any substitute Awards granted under the Plan shall not count against
the share limitation set forth in Section 3(a).

 

SECTION
4.            ELIGIBILITY

 

Grantees under the Plan will be such full or
part-time officers and other employees, Non-Employee Directors and key persons (including consultants and prospective employees)
of the Company and its Subsidiaries as are selected from time to time by the Administrator in its sole discretion.

 

SECTION
5.          STOCK OPTIONS 

 

Any Stock Option granted under the Plan shall
be in such form as the Administrator may from time to time approve.

 

Stock Options granted under the Plan may be
either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to employees of the
Company or any Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code.
To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option.

 

		(a)	Stock Options Granted to Employees and Key Persons. The Administrator in its discretion may grant Stock Options to eligible
employees and key persons of the Company or any Subsidiary. Stock Options granted pursuant to this Section 5(a) shall be subject
to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of
the Plan, as the Administrator shall deem desirable. If the Administrator so determines, Stock Options may be granted in lieu of
cash compensation at the optionee’s election, subject to such terms and conditions as the Administrator may establish.

 

		i.	Exercise Price. The exercise price per share for the Stock covered by a Stock Option granted pursuant to Section 5(a)
shall be determined by the Administrator at the time of grant but shall not be less than 100 percent of the Fair Market Value on
the date of grant. In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the option price of such Incentive
Stock Option shall be not less than 110 percent of the Fair Market Value on the grant date.

 

		ii.	Option Term. The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be exercisable
more than ten years after the date the Stock Option is granted. In the case of an Incentive Stock Option that is granted to a Ten
Percent Owner, the term of such Stock Option shall be no more than five years from the date of grant.

 

     

     

    

 

		iii.	Exercisability; Rights of a Stockholder. Stock Options shall become exercisable at such time or times, whether or not
in installments, as shall be determined by the Administrator at or after the grant date. The Administrator may at any time accelerate
the exercisability of all or any portion of any Stock Option. An optionee shall have the rights of a stockholder only as to shares
acquired upon the exercise of a Stock Option and not as to unexercised Stock Options.

 

		iv.	Method of Exercise. Stock Options may be exercised in whole or in part, by giving written notice of exercise to the
Company, specifying the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following
methods to the extent provided in the Option Award Agreement:

 

		A.	In cash, by certified or bank check or other instrument acceptable to the Administrator; or

 

		B.	Through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the optionee on the open
market or that are beneficially owned by the optionee and are not then subject to restrictions under any Company plan. Such surrendered
shares shall be valued at Fair Market Value on the exercise date; or

 

		C.	By the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker
to promptly deliver to the Company cash or a check payable and acceptable to the Company for the purchase price; provided that
in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker shall comply with such
procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition
of such payment procedure; or

 

		D.	With respect to Non-Qualified Stock Options, by a “net exercise” arrangement pursuant to which the Company will
reduce the number of shares of Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that
does not exceed the aggregate exercise price.

 

Payment instruments will be received subject to collection.
The transfer to the optionee on the records of the Company or of the transfer agent of the shares of Stock to be purchased pursuant
to the exercise of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his stead in accordance
with the provisions of the Stock Option) by the Company of the full purchase price for such shares and the fulfillment of any other
requirements contained in the Option Award Agreement or applicable provisions of laws (including the satisfaction of any withholding
taxes that the Company is obligated to withhold with respect to the optionee). In the event an optionee chooses to pay the purchase
price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the optionee
upon the exercise of the Stock Option shall be net of the number of attested shares. In the event that the Company establishes,
for itself or using the services of a third party, an automated system for the exercise of Stock Options, such as a system using
an internet website or interactive voice response, then the paperless exercise of Stock Options may be permitted through the use
of such an automated system.

 

		v.	Annual Limit on Incentive Stock Options. To the extent required for “incentive stock option” treatment under
Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with
respect to which Incentive Stock Options granted under this Plan and any other plan of the Company or its parent and subsidiary
corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent
that any Stock Option exceeds this limit, it shall constitute a Non-Qualified Stock Option.

 

     

     

    

  

		(b)	Stock Options Granted To Non-Employee Directors

 

		i.	Grant of Options. Each Non-Employee Director who is serving as Director is eligible to receive grants of Non-Qualified
Stock Options to acquire shares of Stock valued at an amount determined by the Compensation Committee from time to time. The Stock
Options to such Directors shall be granted at the same time as the annual grant of equity to the management team or in no event
more than five (5) business days following the annual stockholders meeting.

 

The exercise price per share for the Stock covered by
a Stock Option granted under this Section 5(b) shall be equal to the Fair Market Value of the Stock on the date the Stock
Option is granted.

 

The Administrator, in its discretion, may grant additional
Non-Qualified Stock Options to Non-Employee Directors. Any such grant may vary among individual Non-Employee Directors.

 

		ii.	Exercise; Termination. Unless otherwise determined by the Administrator, an Option granted under Section 5(b) shall
not be exercisable after the expiration of ten years from the date of grant.

 

Options granted under this Section 5(b) may be exercised
only by written notice to the Company specifying the number of shares to be purchased. Payment of the full purchase price of the
shares to be purchased may be made by one or more of the methods specified in Section 5(a)(iv). An optionee shall have the
rights of a stockholder only as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options.

 

SECTION
6.          STOCK APPRECIATION RIGHTS

 

		(a)	Exercise Price of Stock Appreciation Rights. The exercise price of a Stock Appreciation Right shall not be less than
100 percent of the Fair Market Value of the Stock on the date of grant.

 

		(b)	Grant and Exercise of Stock Appreciation Rights. Stock Appreciation Rights may be granted by the Administrator independently
of any Stock Option granted pursuant to Section 5 of the Plan.

 

		(c)	Terms and Conditions of Stock Appreciation Rights. Stock Appreciation Rights shall be subject to such terms and conditions
as shall be determined from time to time by the Administrator. The term of a Stock Appreciation Right may not exceed ten years.

 

SECTION
7.         RESTRICTED STOCK AWARDS

 

		(a)	Nature of Restricted Stock Awards. The Administrator shall determine the restrictions and conditions applicable to each
Restricted Stock Award at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or
achievement of pre-established performance goals and objectives. The grant of a Restricted Stock Award is contingent on the grantee
executing the Restricted Stock Award Agreement. The terms and conditions of each such Award Agreement shall be determined by the
Administrator, and such terms and conditions may differ among individual Awards and grantees.

 

		(b)	Rights as a Stockholder. Upon execution of the Restricted Stock Award Agreement and payment of any applicable purchase
price, a grantee shall have the rights of a stockholder with respect to the voting of the Restricted Stock and receipt of dividends,’
provided that if the lapse of restrictions with respect to the Restricted Stock Award is tied to the attainment of performance
goals, any dividends paid by the Company during the performance period shall accrue and shall not be paid to the grantee until
and to the extent the performance goals are met with respect to the Restricted Stock Award. . Unless the Administrator shall otherwise
determine, (i) uncertificated Restricted Stock shall be accompanied by a notation on the records of the Company or the transfer
agent to the effect that they are subject to forfeiture until such Restricted Stock are vested as provided in Section 7(d) below,
and (ii) certificated Restricted Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided
in Section 7(d) below, and the grantee shall be required, as a condition of the grant, to deliver to the Company such instruments
of transfer as the Administrator may prescribe.

 

     

     

    

 

		(c)	Restrictions. Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of
except as specifically provided herein or in the Restricted Stock Award Agreement. Except as may otherwise be provided by the Administrator
either in the Award Agreement or, subject to Section 18 below, in writing after the Award Agreement is issued if a grantee’s
employment (or other service relationship) with the Company and its Subsidiaries terminates for any reason, any Restricted Stock
that has not vested at the time of termination shall automatically and without any requirement of notice to such grantee from or
other action by or on behalf of, the Company be deemed to have been reacquired by the Company at its original purchase price (if
any) from such grantee or such grantee’s legal representative simultaneously with such termination of employment (or other
service relationship), and thereafter shall cease to represent any ownership of the Company by the grantee or rights of the grantee
as a stockholder. Following such deemed reacquisition of unvested Restricted Stock that are represented by physical certificates,
a grantee shall surrender such certificates to the Company upon request without consideration.

 

		(d)	Vesting of Restricted Stock. The Administrator at the time of grant shall specify the date or dates and/or the attainment
of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock
and the Company’s right of repurchase or forfeiture shall lapse. Notwithstanding the foregoing, in the event that any such
Restricted Stock granted to employees shall have a performance-based goal, the restriction period with respect to such shares shall
not be less than one year, and in the event any such Restricted Stock granted to employees shall have a time-based restriction,
the total restriction period with respect to such shares shall not be less than three years; provided, however, that Restricted
Stock with a time-based restriction may become vested incrementally over such three-year period. Subsequent to such date or dates
and/or the attainment of such pre-established performance goals, objectives and other conditions, the shares on which all restrictions
have lapsed shall no longer be Restricted Stock and shall be deemed “vested.” Except as may otherwise be provided by
the Administrator either in the Award Agreement or, subject to Section 18 below, in writing after the Award Agreement is issued,
a grantee’s rights in any shares of Restricted Stock that have not vested shall automatically terminate upon the grantee’s
termination of employment (or other service relationship) with the Company and its Subsidiaries and such shares shall be subject
to the provisions of Section 7(c) above.

 

		(e)	Restricted Stock Granted to Non-Employee Directors

 

		i.	Grant of Restricted Stock.

 

		(A)	Each Non-Employee Director who is serving as Director of the Company is eligible to receive grants of restricted stock valued
at an amount determined by the Compensation Committee from time to time. The restricted stock to such Directors shall be granted
at the same time as the annual grant of equity to the management team or in no event more than five (5) business days following
the annual stockholders meeting.

 

SECTION
8.           DEFERRED STOCK AWARDS

 

		(a)	Nature of Deferred Stock Awards. The Administrator shall determine the restrictions and conditions applicable to each
Deferred Stock Award at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or
achievement of pre-established performance goals and objectives. The grant of a Deferred Stock Award is contingent on the grantee
executing the Deferred Stock Award Agreement. The terms and conditions of each such Award Agreement shall be determined by the
Administrator, and such terms and conditions may differ among individual Awards and grantees. Notwithstanding the foregoing, in
the event that any such Deferred Stock Award granted to employees shall have a performance-based goal, the restriction period with
respect to such Award shall not be less than one year, and in the event any such Deferred Stock Award granted to employees shall
have a time-based restriction, the total restriction period with respect to such Award shall not be less than three years; provided,
however, that any Deferred Stock Award with a time-based restriction may become vested incrementally over such three-year period.
At the end of the deferral period, the Deferred Stock Award, to the extent vested, shall be settled in the form of shares of Stock.

 

     

     

    

 

		(b)	Election to Receive Deferred Stock Awards in Lieu of Compensation. The Administrator may, in its sole discretion, permit
a grantee to elect to receive a portion of future cash compensation otherwise due to such grantee in the form of a Deferred Stock
Award. Any such election shall be made in writing and shall be delivered to the Company no later than the date specified by the
Administrator and in accordance with Section 409A and such other rules and procedures established by the Administrator. Any such
future cash compensation that the grantee elects to defer shall be converted to a fixed number of phantom stock units based on
the Fair Market Value of Stock on the date the compensation would otherwise have been paid to the grantee if such payment had not
been deferred as provided herein. The Administrator shall have the sole right to determine whether and under what circumstances
to permit such elections and to impose such limitations and other terms and conditions thereon as the Administrator deems appropriate.

 

		(c)	Rights as a Stockholder. A grantee shall have the rights as a stockholder only as to shares of Stock acquired by the
grantee upon settlement of a Deferred Stock Award; provided, however, that the grantee may be credited with Dividend Equivalent
Rights with respect to the phantom stock units underlying his Deferred Stock Award, subject to such terms and conditions as the
Administrator may determine.

 

		(d)	Termination. Except as may otherwise be provided by the Administrator either in the Award Agreement or, subject to Section 18
below, in writing after the Award Agreement is issued, a grantee’s right in all Deferred Stock Awards that have not vested
shall automatically terminate upon the grantee’s termination of employment (or cessation of service relationship) with the
Company and its Subsidiaries for any reason.

 

SECTION
9.          UNRESTRICTED STOCK AWARDS

 

		(a)	Grant or Sale of Unrestricted Stock. The Administrator may, in its sole discretion, grant (or sell at par value or such
higher purchase price determined by the Administrator) an Unrestricted Stock Award under the Plan. Unrestricted Stock Awards may
be granted in respect of past services or other valid consideration, or in lieu of cash compensation due to such grantee.

 

SECTION
10.          CASH-BASED AWARDS

 

		(a)	Grant of Cash-based Awards. The Administrator may, in its sole discretion, grant Cash-based Awards to any grantee in
such number or amount and upon such terms, and subject to such conditions, as the Administrator shall determine at the time of
grant. The Administrator shall determine the maximum duration of the Cash-based Award, the amount of cash to which the Cash-based
Award pertains, the conditions upon which the Cash-based Award shall become vested or payable, and such other provisions as the
Administrator shall determine. Each Cash-based Award shall specify a cash-denominated payment amount, formula or payment ranges
as determined by the Administrator. Payment, if any, with respect to a Cash-based Award shall be made in accordance with the terms
of the Award and may be made in cash or in shares of Stock, as the Administrator determines.

 

SECTION
11.          PERFORMANCE SHARE AWARDS

 

		(a)	Nature of Performance Share Awards. The Administrator may, in its sole discretion, grant Performance Share Awards independent
of, or in connection with, the granting of any other Award under the Plan. The Administrator shall determine whether and to whom
Performance Share Awards shall be granted, the Performance Goals, the periods during which performance is to be measured, which
may not be less than one year, and such other limitations and conditions as the Administrator shall determine.

 

     

     

    

 

		(b)	Rights as a Stockholder. A grantee receiving a Performance Share Award shall have the rights of a stockholder only as
to shares actually received by the grantee under the Plan and not with respect to shares subject to the Award but not actually
received by the grantee. A grantee shall be entitled to receive shares of Stock under a Performance Share Award only upon satisfaction
of all conditions specified in the Performance Share Award agreement (or in a performance plan adopted by the Administrator).

 

		(c)	Termination. Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to Section 18
below, in writing after the Award agreement is issued, a grantee’s rights in all Performance Share Awards shall automatically
terminate upon the grantee’s termination of employment (or cessation of service relationship) with the Company and its Subsidiaries
for any reason.

 

SECTION
12.          PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES

 

		(a)	Performance-based Awards. Any employee or other key person providing services to the Company and who is selected by
the Administrator may be granted one or more Performance-based Awards in the form of a Restricted Stock Award, Deferred Stock Award,
Performance Share Awards or Cash-based Award payable upon the attainment of Performance Goals that are established by the Administrator
and relate to one or more of the Performance Criteria, in each case on a specified date or dates or over any period or periods
determined by the Administrator. The Administrator shall define in an objective fashion the manner of calculating the Performance
Criteria it selects to use for any Performance Period. Depending on the Performance Criteria used to establish such Performance
Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a division, business
unit, or an individual. The Administrator, in its discretion, may adjust or modify the calculation of Performance Goals for such
Performance Period in order to prevent the dilution or enlargement of the rights of an individual (i) in the event of, or in anticipation
of, any unusual or extraordinary corporate item, transaction, event or development, (ii) in recognition of, or in anticipation
of, any other unusual or nonrecurring events affecting the Company, or the financial statements of the Company, or (iii) in response
to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business conditions provided however,
that the Administrator may not exercise such discretion in a manner that would increase the Performance-based Award granted to
a Covered Employee. Each Performance-based Award shall comply with the provisions set forth below.

 

		(b)	Grant of Performance-based Awards. With respect to each Performance-based Award granted to a Covered Employee, the Administrator
shall select, within the first 90 days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m)
of the Code) the Performance Criteria for such grant, and the Performance Goals with respect to each Performance Criterion (including
a threshold level of performance below which no amount will become payable with respect to such Award). Each Performance-based
Award will specify the amount payable, or the formula for determining the amount payable, upon achievement of the various applicable
performance targets. The Performance Criteria established by the Administrator may be (but need not be) different for each Performance
Cycle and different Performance Goals may be applicable to Performance-based Awards to different Covered Employees.

 

		(c)	Payment of Performance-based Awards. Following the completion of a Performance Cycle, the Administrator shall meet to
review and certify in writing whether, and to what extent, the Performance Goals for the Performance Cycle have been achieved and,
if so, to also calculate and certify in writing the amount of the Performance-based Awards earned for the Performance Cycle. The
Administrator shall then determine the actual size of each Covered Employee’s Performance-based Award, and, in doing so,
may reduce or eliminate the amount of the Performance-based Award for a Covered Employee if, in its sole judgment, such reduction
or elimination is appropriate.

 

     

     

    

 

		(d)	Maximum Award Payable. The maximum Performance-based Award payable to any one Covered Employee under the Plan for a
Performance Cycle is 500,000 Shares (subject to adjustment as provided in Section 3(b) hereof) or $1,000,000 in the case of
a Performance-based Award that is a Cash-based Award.

 

SECTION
13.          DIVIDEND EQUIVALENT RIGHTS

 

		(a)	Dividend Equivalent Rights. A Dividend Equivalent Right may be granted hereunder to any grantee as a component of another
Award or as a freestanding award. The terms and conditions of Dividend Equivalent Rights shall be specified in the Award Agreement.
Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested
in additional shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market
Value on the date of reinvestment or such other price as may then apply under a dividend reinvestment plan sponsored by the Company,
if any. Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination thereof, in a single installment
or installments. A Dividend Equivalent Right granted as a component of a Restricted Stock Award or Performance Share Award shall
provide that such Dividend Equivalent Right shall be settled only upon , settlement, or payment of, or lapse of restrictions on,
such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as
such other Award

 

		(b)	Interest Equivalents. Any Award under this Plan that is settled in whole or in part in cash on a deferred basis may
provide in the grant for interest equivalents to be credited with respect to such cash payment. Interest equivalents may be compounded
and shall be paid upon such terms and conditions as may be specified by the grant.

 

		(c)	Termination. Except as may otherwise be provided by the Administrator either in the Award Agreement or, subject to Section 18
below, in writing after the Award Agreement is issued, a grantee’s rights in all Dividend Equivalent Rights or interest equivalents
granted as a component of another Award that has not vested shall automatically terminate upon the grantee’s termination
of employment (or cessation of service relationship) with the Company and its Subsidiaries for any reason.

 

SECTION
14.          Transferability of Awards

 

		(a)	Transferability. Except as provided in Section 14(b) below, during a grantee’s lifetime, his or her Awards
shall be exercisable only by the grantee, or by the grantee’s legal representative or guardian in the event of the grantee’s
incapacity. No Awards shall be sold, assigned, transferred or otherwise encumbered or disposed of by a grantee other than by will
or by the laws of descent and distribution. No Awards shall be subject, in whole or in part, to attachment, execution, or levy
of any kind, and any purported transfer in violation hereof shall be null and void.

 

		(b)	Administrator Action. Notwithstanding Section 14(a), the Administrator, in its discretion, may provide either in
the Award Agreement regarding a given Award or by subsequent written approval that the grantee (who is an employee or director)
may transfer his or her Awards (other than any Incentive Stock Options) to his or her immediate family members, to trusts for the
benefit of such family members, or to partnerships in which such family members are the only partners, provided that the transferee
agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Award.

 

		(c)	Family Member. For purposes of Section 14(b), “family member” shall mean a grantee’s 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, any person sharing the grantee’s household
(other than a tenant of the grantee), a trust in which these persons (or the grantee) have more than 50 percent of the beneficial
interest, a foundation in which these persons (or the grantee) control the management of assets, and any other entity in which
these persons (or the grantee) own more than 50 percent of the voting interests.

 

     

     

    

  

		(d)	Designation of Beneficiary. Each grantee to whom an Award has been made under the Plan may designate a beneficiary or
beneficiaries to exercise any Award or receive any payment under any Award payable on or after the grantee’s death. Any such
designation shall be on a form provided for that purpose by the Administrator and shall not be effective until received by the
Administrator. If no beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased
the grantee, the beneficiary shall be the grantee’s estate.

 

SECTION
15.          TAX WITHHOLDING

 

(a)Payment by Grantee.
Each grantee shall, no later than the date as of which the value of an Award or of any Stock or other amounts received thereunder
first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the Company, or make arrangements
satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld
by the Company with respect to such income. The Company and its Subsidiaries shall, to the extent permitted by law, have the right
to deduct any such taxes from any payment of any kind otherwise due to the grantee. The Company’s obligation to deliver evidence
of book entry (or stock certificates) to any grantee is subject to and conditioned on tax withholding obligations being satisfied
by the grantee.

 

		(b)	Payment in Stock. Subject to approval by the Administrator, a grantee may elect to have the Company’s minimum
required tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock
to be issued pursuant to any Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected)
that would satisfy the withholding amount due.

 

SECTION
16.     Additional Conditions Applicable to Nonqualified Deferred Compensation Under Section 409A. 

 

In the event any Stock Option or Stock Appreciation
Right under the Plan is materially modified and deemed a new grant at a time when the Fair Market Value exceeds the exercise price,
or any other Award is otherwise determined to constitute “nonqualified deferred compensation” within the meaning of
Section 409A (a “409A Award”), the following additional conditions shall apply and shall supersede any contrary provisions
of this Plan or the terms of any agreement relating to such 409A Award.

 

		(a)	Exercise and Distribution. Except as provided in Section 16(b) hereof, no 409A Award shall be exercisable or distributable
earlier than upon one of the following:

 

		i.	Specified Time. A specified time or a fixed schedule set forth in the written instrument evidencing the 409A Award.

 

		ii.	Separation from Service. Separation from service (within the meaning of Section 409A) by the 409A Award grantee; provided,
however, that if the 409A Award grantee is a “key employee” (as defined in Section 416(i) of the Code without regard
to paragraph (5) thereof) and any of the Company’s Stock is publicly traded on an established securities market or otherwise,
exercise or distribution under this Section 16(a)(ii) may not be made before the date that is six months after the date of separation
from service.

 

		iii.	Death. The date of death of the 409A Award grantee.

 

		iv.	Disability. The date the 409A Award grantee becomes disabled (within the meaning of Section 16(c)(ii) hereof).

 

		v.	Unforeseeable Emergency. The occurrence of an unforeseeable emergency (within the meaning of Section 16(c)(iii) hereof),
but only if the net value (after payment of the exercise price) of the number of shares of Stock that become issuable does not
exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of
the exercise, after taking into account the extent to which the emergency is or may be relieved through reimbursement or compensation
by insurance or otherwise or by liquidation of the grantee’s other assets (to the extent such liquidation would not itself
cause severe financial hardship).

 

     

     

    

 

		vi.	Change in Control Event. The occurrence of a Change in Control Event (within the meaning of Section 16(c)(i) hereof),
including the Company’s discretionary exercise of the right to accelerate vesting of such grant upon a Change in Control
Event or to terminate the Plan or any 409A Award granted hereunder within 12 months of the Change in Control Event.

 

		(b)	No Acceleration. A 409A Award may not be accelerated or exercised prior to the time specified in Section 16(a) hereof,
except in the case of one of the following events:

 

		i.	Domestic Relations Order. The 409A Award may permit the acceleration of the exercise or distribution time or schedule
to an individual other than the grantee as may be necessary to comply with the terms of a domestic relations order (as defined
in Section 414(p)(1)(B) of the Code).

 

		ii.	Conflicts of Interest. The 409A Award may permit the acceleration of the exercise or distribution time or schedule as
may be necessary to comply with the terms of a certificate of divestiture (as defined in Section 1043(b)(2) of the Code).

 

		iii.	Change in Control Event. The Administrator may exercise the discretionary right to accelerate the vesting of such 409A
Award upon a Change in Control Event or to terminate the Plan or any 409A Award granted thereunder within 12 months of the Change
in Control Event and cancel the 409A Award for compensation.

 

		(c)	Definitions. Solely for purposes of this Section 16 and not for other purposes of the Plan, the following terms shall
be defined as set forth below:

 

		i.	“Change in Control Event” means the occurrence of a change in the ownership of the Company, a change in effective
control of the Company, or a change in the ownership of a substantial portion of the assets of the Company (as defined in Section
1.409A-3(g) of the proposed regulations promulgated under Section 409A by the Department of the Treasury on September 29, 2005
or any subsequent guidance).

 

		ii.	“Disabled” means a grantee who (i) 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, or (ii) is, 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, receiving income replacement
benefits for a period of not less than three months under an accident and health plan covering employees of the Company or its
Subsidiaries.

 

		iii.	“Unforeseeable Emergency” means a severe financial hardship to the grantee resulting from an illness or accident
of the grantee, the grantee’s spouse, or a dependent (as defined in Section 152(a) of the Code) of the grantee, loss of the
grantee’s property due to casualty, or similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the grantee.

 

     

     

    

 

SECTION
17.          TRANSFER, LEAVE OF ABSENCE, ETC.

 

For purposes of the Plan, the following events
shall not be deemed a termination of employment:

 

		(a)	a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to
another; or

 

		(b)	an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the employee’s
right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence
was granted or if the Administrator otherwise so provides in writing.

 

SECTION
18.          AMENDMENTS AND TERMINATION

 

The Board may, at any time, amend or discontinue
the Plan and the Administrator may, at any time, amend or cancel any outstanding Award for the purpose of satisfying changes in
law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder’s
consent. Except as provided in Section 3(b) or 3(c), in no event may the Administrator exercise its discretion to reduce the exercise
price of outstanding Stock Options or Stock Appreciation Rights or effect re-pricing through cancellation and re-grants or cancellation
of Stock Options or Stock Appreciation Rights in exchange for cash or other Awards. To the extent required under the rules of any
securities exchange or market system on which the Stock is listed, to the extent determined by the Administrator to be required
by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under Section 422 of the Code, or
to ensure that compensation earned under Awards qualifies as performance-based compensation under Section 162(m) of the Code,
Plan amendments shall be subject to approval by the Company stockholders entitled to vote at a meeting of stockholders. Nothing
in this Section 18 shall limit the Administrator’s authority to take any action permitted pursuant to Section 3(c).

 

SECTION
19.          STATUS OF PLAN

 

With respect to the portion of any Award that
has not been exercised and any payments in cash, Stock or other consideration not received by a grantee, a grantee shall have no
rights greater than those of a general creditor of the Company unless the Administrator shall otherwise expressly determine in
connection with any Award or Awards. In its sole discretion, the Administrator may authorize the creation of trusts or other arrangements
to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence
of such trusts or other arrangements is consistent with the foregoing sentence.

 

SECTION
20.          GENERAL PROVISIONS

 

		(a)	No Distribution. The Administrator may require each person acquiring Stock pursuant to an Award to represent to and
agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof.

 

		(b)	Delivery of Stock Certificates. Stock certificates to grantees under this Plan shall be deemed delivered for all purposes
when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed
to the grantee, at the grantee’s last known address on file with the Company. Uncertificated Stock shall be deemed delivered
for all purposes when the Company or a Stock transfer agent of the Company shall have given to the grantee by electronic mail (with
proof of receipt) or by United States mail, addressed to the grantee, at the grantee’s last known address on file with the
Company, notice of issuance and recorded the issuance in its records (which may include electronic “book entry” records).
Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing
shares of Stock pursuant to the exercise of any Award, unless and until the Administrator has determined, with advice of counsel
(to the extent the Administrator deems such advice necessary or advisable), that the issuance and delivery of such certificates
is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any
exchange on which the shares of Stock are listed, quoted or traded. All Stock certificates delivered pursuant to the Plan shall
be subject to any stop-transfer orders and other restrictions as the Administrator deems necessary or advisable to comply with
federal, state or foreign jurisdiction, securities or other laws, rules and quotation system on which the Stock is listed, quoted
or traded. The Administrator may place legends on any Stock certificate to reference restrictions applicable to the Stock. In addition
to the terms and conditions provided herein, the Administrator may require that an individual make such reasonable covenants, agreements,
and representations as the Administrator, in its discretion, deems necessary or advisable in order to comply with any such laws,
regulations, or requirements. The Administrator shall have the right to require any individual to comply with any timing or other
restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in
the discretion of the Administrator.

 

     

     

    

 

		(c)	Stockholder Rights. Until Stock is deemed delivered in accordance with Section 20(b), no right to vote or receive dividends
or any other rights of a stockholder will exist with respect to shares of Stock to be issued in connection with an Award, notwithstanding
the exercise of a Stock Option or any other action by the grantee with respect to an Award.

 

		(d)	Other Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from adopting
other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable
only in specific cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right to continued
employment with the Company or any Subsidiary.

 

		(e)	Trading Policy Restrictions. Option exercises and other Awards under the Plan shall be subject to such Company’s
insider trading policy and procedures, as in effect from time to time.

 

		(f)	Forfeiture of Awards under Sarbanes-Oxley Act. If the Company is required to prepare an accounting restatement due to
the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities
laws, then any grantee who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act
of 2002 shall reimburse the Company for the amount of any Award received by such individual under the Plan during the 12-month
period following the first public issuance or filing with the United States Securities and Exchange Commission, as the case may
be, of the financial document embodying such financial reporting requirement.

 

		(g)	Clawback Policy. Awards under the Plan shall be subject to the Company’s clawback policy, as in effect from time to time.

 

SECTION
21.           EFFECTIVE DATE OF PLAN

 

This Plan shall become effective upon approval
by the holders of a majority of the votes cast at a meeting of stockholders at which a quorum is present. No grants of Stock Options
and other Awards may be made hereunder after the tenth anniversary of the date the Third Amended Plan is approved by stockholders
and no grants of Incentive Stock Options may be made hereunder after the tenth anniversary of the date the Third Amended Plan is
approved by the Board.

  

SECTION
22.          GOVERNING LAW

 

This Plan and all Awards and actions taken thereunder
shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied without regard to conflict of
law principles.

 

	ORIGINAL 2008 STOCK INCENTIVE PLAN	 
	 	 
	DATE APPROVED BY BOARD OF DIRECTORS: 	February 7, 2008
	 	 
	DATE APPROVED BY STOCKHOLDERS:	 June 4, 2008

 

     

     

    

 

 

AMENDED 2008 STOCK INCENTIVE PLAN

	 	 
	DATE APPROVED BY BOARD OF DIRECTORS: 	March 22, 2011
	 	 
	DATE APPROVED BY STOCKHOLDERS:	 June 1, 2011
	 	 
	SECOND AMENDED 2008 STOCK INCENTIVE PLAN	 
	 	 
	DATE APPROVED BY BOARD OF DIRECTORS: 	January 31, 2013
	 	 
	DATE APPROVED BY STOCKHOLDERS:	June 5, 2013
	 	 
	THIRD AMENDED 2008 STOCK INCENTIVE PLAN	 
	 	 
	DATE APPROVED BY THE BOARD OF DIRECTORS:	February 27, 2015
	 	 
	DATE APPROVED BY STOCKHOLDERS :	June 3, 2015Exhibit
10.40

 

albany molecular
research, INC.

SENIOR EXECUTIVE CASH INCENTIVE BONUS PLAN

 

1.           Purpose

 

This Senior Executive Cash Incentive Bonus Plan
(the “Incentive Plan”) is intended to provide an incentive for superior work and to motivate
eligible executives of Albany Molecular Research, Inc. (the “Company”) and its subsidiaries toward even
higher achievement and business results, to tie their goals and interests to those of the Company and its stockholders and to enable
the Company to attract and retain highly qualified executives. The Incentive Plan is for the benefit of Covered Executives (as
defined below). Bonus payments under the Incentive Plan are intended to be “performance-based” compensation within
the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (the
“Code”) if paid to a Covered Executive who is a “covered employee” within the meaning of Section 162(m)
of the Code.

 

2.           Covered
Executives

 

From time to time, the Compensation Committee
of the Board of Directors of the Company (the “Compensation Committee”) may select certain
key executives and other key employees (the “Covered Executives”) to participate in the
Incentive Plan. Participation in this Incentive Plan does not change the “at will” nature of a Covered Executive’s
employment with the Company and participation in the Incentive Plan in one performance period does not guarantee participation
in subsequent performance periods.

 

3.           Administration

 

The Compensation Committee shall have the sole
discretion and authority to administer and interpret the Incentive Plan. Each member of the Compensation Committee shall be an
“outside director” within the meaning of Section 162(m) of the Code.

 

4.           Bonus
Determinations

 

(a)          Performance
Goals. A Covered Executive may receive a bonus payment under the Incentive Plan based upon the attainment of one or more performance
objectives that are established by the Compensation Committee and relate to financial and operational metrics with respect to the
Company or any of its subsidiaries, units, divisions or groups (the “Performance Goals”), including,
but not limited to, the following: earnings before interest, taxes, depreciation and amortization, net income (loss) (either before
or after interest, taxes, depreciation and/or amortization), changes in the market price of the Company’s common stock, economic
value-added, funds from operations or similar measure, sales or revenue, acquisitions or strategic transactions, operating income
(loss), cash flow (including, but not limited to, operating cash flow and free cash flow), return on capital assets, equity or
investment, stockholder returns, return on sales, gross or net profit levels, productivity, expense, margins, operating efficiency,
customer satisfaction, working capital, earnings (loss) per share of common stock of the Company, sales or market shares and number
of customers, customer satisfaction, any of which may be measured either in absolute terms or as compared to any incremental increase
or as compared to results of a peer group and any of which may be measured either in accordance with GAAP or in accordance with
pro forma measures as established by the Company and communicated to the shareholders of the Company. Within the first 90 days
of each performance period (or, if shorter, within one-quarter of the performance period if the period is shorter than one year),
the Compensation Committee shall select the Performance Goals applicable for each Covered Executive for the performance period.
The Performance Goals may differ from Covered Executive to Covered Executive.

 

     

     

    

  

(b)          Calculation
of Performance Goals. At the beginning of each applicable performance period, the Compensation Committee will determine whether
any significant element(s) will be included in or excluded from the calculation of any Performance Goal with respect to any Covered
Executive, including a change in accounting standards or an acquisition or disposition during the fiscal year in question. 
In all other respects, Performance Goals will be calculated in accordance with the Company’s financial statements, generally
accepted accounting principles, or under a methodology established by the Compensation Committee at the beginning of the performance
period and which is consistently applied with respect to a Performance Goal in the relevant performance period.

 

(c)          Target;
Threshold; Superior. Each Performance Goal shall have a “target” (100 percent attainment of the Performance Goal)
and may also have a “threshold” hurdle and/or a “superior” payment amount. In the event that the actual
corporate performance shall fall between any of the levels set forth for achievement, linear interpolation shall be used to determine
the actual payout under each Performance Goal.

 

(d)          Bonus
Requirements. (i) Any bonuses paid to “covered employees” who are also Covered Executives under the Incentive Plan
shall be based upon objectively determinable bonus formulas that tie such bonuses to one or more performance targets relating to
the Performance Goals, (ii) bonus formulas for Covered Executives shall be adopted in each performance period by the Compensation
Committee and communicated to each Covered Executive at the beginning of each performance period and (iii) no bonuses shall be
paid to Covered Executives unless and until the Compensation Committee certifies in writing whether, and to what extent, Performance
Goals for the performance period have been achieved. Notwithstanding the foregoing, the Compensation Committee may apply negative
discretion to reduce, but not increase, the amount of the bonuses payable to Covered Executives under the Incentive Plan.

 

(e)          Individual
Target Bonuses and Maximum Bonuses. The Compensation Committee shall establish a target bonus opportunity for each Covered
Executive for each performance period. The maximum amount of bonus for each Covered Executive in any performance period shall not
exceed $5 million.

 

(f)          Employment
Requirement. Subject to any additional terms contained in a written agreement between the Covered Executive and the Company,
in the discretion of the Compensation Committee, the payment of a bonus to a Covered Executive with respect to a performance period
may be conditioned upon the Covered Executive’s employment by the Company on the bonus payment date. If a Covered Executive
was not employed for an entire performance period, the Compensation Committee may pro rate the bonus based on the number of days
employed during such period.

 

5.           Timing
of Payment

 

(a)          With
respect to Performance Goals established and measured on a basis more frequently than annually (e.g., quarterly or semi-annually),
the Performance Goals will be measured at the end of each performance period after the Company’s financial reports with respect
to such period(s) have been published. If the Performance Goals and/or individual goals for such period are met, payments will
be made as soon as practicable following the end of such period, but not later 74 days after the end of the fiscal year in which
such performance period ends.

 

(b)          With
respect to Performance Goals established and measured on an annual or multi-year basis, Performance Goals will be measured as of
the end of each such performance period (e.g., the end of each fiscal year) after the Company’s financial reports with respect
to such period(s) have been published. If the Performance Goals and/or individual goals for any such period are met, bonus payments
will be made as soon as practicable, but not later than 74 days after the end of the relevant fiscal year.

 

(c)          For
the avoidance of doubt, bonuses earned at any time in a fiscal year must be paid no later than 74 days after the last day of such
fiscal year.

 

    	 	2	 

     

    

  

6.            Withholding

 

Distributions pursuant to this Incentive Plan
an shall be subject to all applicable withholding and other taxes and all contributions or deductions required by law to be deducted
or withheld in accordance with procedures established by the Company.

 

7.           Amendment
and Termination

 

The Company reserves the right to amend or terminate
the Incentive Plan at any time in its sole discretion; provided, however, that amendments shall be subject to stockholder approval
to the extent required by Section 162(m) of the Code. In the case of any Covered Executive employed outside the United States,
the Company may vary the provisions of this Incentive Plan as deemed appropriate to conform with, as required by, or made desirable
by, local laws, practices and procedures.

 

8.           Governing
Law

 

This Incentive Plan shall be governed by the
laws of the State of Delaware.

 

9.           Stockholder
Approval

 

This Incentive Plan shall be submitted for stockholder
approval at the Company’s 2016 annual meeting.

 

    	 	3

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