Document:

Exhibit 10.1

 

SNAP
INTERACTIVE, INC.

 

2016
LONG-TERM INCENTIVE PLAN

 

The
Snap Interactive, Inc. 2016 Long-Term Incentive Plan (the “Plan”) was adopted by the Board of Directors
of Snap Interactive, Inc., a Delaware corporation (the “Company”), on March 28, 2016 (the “Board
Approval Date”), subject to approval by the Company’s stockholders (the date the stockholder’s approve
the Plan referred to herein as the “Effective Date”).

 

ARTICLE
1

PURPOSE

 

The
purpose of the Plan is to attract and retain the services of key employees, key contractors and Outside Directors of the Company
and its Subsidiaries and to provide such persons with a proprietary interest in the Company through the granting of incentive
stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards,
dividend equivalent rights, and other awards, whether granted singly, or in combination, or in tandem, that will

 

(a)            increase
the interest of such persons in the Company’s welfare;

 

(b)            furnish
an incentive to such persons to continue their services for the Company or its Subsidiaries; and

 

(c)            provide
a means through which the Company may attract able persons as Employees, Contractors and Outside Directors.

 

With
respect to Reporting Participants, the Plan and all transactions under the Plan are intended to comply with all applicable conditions
of Rule 16b-3 promulgated under the Exchange Act. To the extent any provision of the Plan or action by the Committee fails to
so comply, such provision or action shall be deemed null and void ab initio, to the extent permitted by law and deemed
advisable by the Committee.

 

ARTICLE
2

DEFINITIONS

 

For
the purpose of the Plan, unless the context requires otherwise, the following terms shall have the meanings indicated:

 

2.1         “Applicable
Law” means all legal requirements relating to the administration of equity incentive plans and the issuance and
distribution of shares of Common Stock, if any, under applicable corporate laws, applicable securities laws, the rules of any
exchange or inter-dealer quotation system upon which the Company’s securities are listed or quoted, and any other applicable
law, rule or restriction.

 

2.2         “Authorized
Officer” is defined in Section 3.2(b) hereof.

 

2.3         “Award”
means the grant of any Incentive Stock Option, Nonqualified Stock Option, Restricted Stock, SAR, Restricted Stock Unit, Performance
Award, Dividend Equivalent Right or Other Award, whether granted singly or in combination or in tandem (each individually referred
to herein as an “Incentive”).

 

     

     

    

 

2.4         “Award
Agreement” means a written agreement between a Participant and the Company which sets out the terms of the grant
of an Award.

 

2.5         “Award
Period” means the period set forth in the Award Agreement during which one or more Incentives granted under an Award
may be exercised.

 

2.6         “Board”
means the board of directors of the Company.

 

2.7         “Change
in Control” means any of the following, except as otherwise provided herein: (i) any consolidation, merger or share
exchange of the Company in which the Company is not the continuing or surviving corporation or pursuant to which shares of the
Company’s Common Stock would be converted into cash, securities or other property, other than a consolidation, merger or
share exchange of the Company in which the holders of the Company’s Common Stock immediately prior to such transaction have
the same proportionate ownership of Common Stock of the surviving corporation immediately after such transaction; (ii) any sale,
lease, exchange or other transfer (excluding transfer by way of pledge or hypothecation) in one transaction or a series of related
transactions, of all or substantially all of the assets of the Company; (iii) the stockholders of the Company approve any plan
or proposal for the liquidation or dissolution of the Company; (iv) the cessation of control (by virtue of their not constituting
a majority of directors) of the Board by the individuals (the “Continuing Directors”) who (x) at the
date of this Plan were directors or (y) become directors after the date of this Plan and whose election or nomination for election
by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then in office who were directors
at the date of this Plan or whose election or nomination for election was previously so approved; (v) the acquisition of beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of an aggregate of 50% or more of the voting power of the
Company’s outstanding voting securities by any person or group (as such term is used in Rule 13d-5 under the Exchange Act)
who beneficially owned less than 50% of the voting power of the Company’s outstanding voting securities on the date of this
Plan; provided, however, that notwithstanding the foregoing, an acquisition shall not constitute a Change in Control
hereunder if the acquirer is (x) a trustee or other fiduciary holding securities under an employee benefit plan of the Company
and acting in such capacity, (y) a Subsidiary of the Company or a corporation owned, directly or indirectly, by the stockholders
of the Company in substantially the same proportions as their ownership of voting securities of the Company or (z) any other person
whose acquisition of shares of voting securities is approved in advance by a majority of the Continuing Directors; or (vi) in
a Title 11 bankruptcy proceeding, the appointment of a trustee or the conversion of a case involving the Company to a case under
Chapter 7.

 

Notwithstanding
the foregoing provisions of this Section 2.10, if an Award issued under the Plan is subject to Section 409A of the Code, then
an event shall not constitute a Change in Control for purposes of such Award under the Plan unless such event also constitutes
a change in the Company’s ownership, its effective control or the ownership of a substantial portion of its assets within
the meaning of Section 409A of the Code.

 

2.8         “Claims”
means any claim, liability or obligation of any nature, arising out of or relating to this Plan or an alleged breach of this Plan,
or an Award Agreement.

 

2.9         “Code”
means the Internal Revenue Code of 1986, as amended.

 

2.10       “Committee”
means the committee appointed or designated by the Board to administer the Plan in accordance with Article 3 of this
Plan.

 

2.11       “Common
Stock” means the common stock, par value $0.001 per share, which the Company is currently authorized to issue or
may in the future be authorized to issue, or any securities into which or for which the common stock of the Company may be converted
or exchanged, as the case may be, pursuant to the terms of this Plan.

 

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2.12       “Company”
means Snap Interactive, Inc., a Delaware corporation, and any successor entity.

 

2.13       “Continuing
Directors” is defined in Section 2.8 hereof.

 

2.14       “Contractor”
means any natural person, who is not an Employee, rendering bona fide services to the Company or a Subsidiary,
with compensation, pursuant to a written independent contractor agreement between such person and the Company or a Subsidiary,
provided that such services are not rendered in connection with the offer or sale of securities in a capital raising transaction
and do not directly or indirectly promote or maintain a market for the Company’s securities.

 

2.15       “Corporation”
means any entity that (i) is defined as a corporation under Section 7701 of the Code and (ii) is the Company or is in an unbroken
chain of corporations (other than the Company) beginning with the Company, if each of the corporations other than the last corporation
in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of stock in one of the
other corporations in the chain. For purposes of clause (ii) hereof, an entity shall be treated as a “corporation”
if it satisfies the definition of a corporation under Section 7701 of the Code.

 

2.16       “Date
of Grant” means the effective date on which an Award is made to a Participant as set forth in the applicable Award
Agreement; provided, however, that solely for purposes of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder, the Date of Grant of an Award shall be the date of stockholder approval of the Plan if such date is later than the
effective date of such Award as set forth in the Award Agreement.

 

2.17       “Dividend
Equivalent Right” means the right of the holder thereof to receive credits based on the cash dividends that would
have been paid on the shares of Common Stock specified in the Award if such shares were held by the Participant to whom the Award
is made.

 

2.18       “Employee”
means common law employee (as defined in accordance with the Regulations and Revenue Rulings then applicable under Section 3401(c)
of the Code) of the Company or any Subsidiary of the Company.

 

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

 

2.20       “Executive
Officer” means an officer of the Company or a Subsidiary subject to Section 16 of the Exchange Act or a “covered
employee” as defined in Section 162(m)(3) of the Code.

 

2.21       “Exercise
Date” is defined in Section 8.3(b) hereof.

 

2.22       “Exercise
Notice” is defined in Section 8.3(b) hereof.

 

2.23       “Fair
Market Value” means, as of a particular date, (a) if the shares of Common Stock are listed on any established national
securities exchange, the closing sales price per share of Common Stock on the consolidated transaction reporting system for the
principal securities exchange for the Common Stock on that date, or, if there shall have been no such sale so reported on that
date, on the last preceding date on which such a sale was so reported, (b) if the shares of Common Stock are not so listed but
are quoted on an automated quotation system, the closing sales price per share of Common Stock reported on the automated quotation
system on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such
a sale was so reported, (c) if the Common Stock is not so listed or quoted, the mean between the closing bid and asked price on
that date, or, if there are no quotations available for such date, on the last preceding date on which such quotations shall be
available, as reported by the National Association of Securities Dealer, Inc.’s OTC Bulletin Board or Pink OTC Markets,
Inc. (previously known as the National Quotation Bureau, Inc.), or (d) if none of the above is applicable, such amount as may
be determined by the Committee (acting on the advice of an Independent Third Party, should the Committee elect in its sole discretion
to utilize an Independent Third Party for this purpose), in good faith, to be the fair market value per share of Common Stock.
The determination of Fair Market Value shall, where applicable, be in compliance with Section 409A of the Code.

 

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2.24       “Immediate
Family Members” is defined in Section 15.8 hereof.         

 

2.25       “Incentive”
is defined in Section 2.3 hereof.

 

2.26       “Incentive
Stock Option” means an incentive stock option within the meaning of Section 422 of the Code, granted pursuant to
this Plan.

 

2.27       “Independent
Third Party” means an individual or entity independent of the Company having experience in providing investment
banking or similar appraisal or valuation services and with expertise generally in the valuation of securities or other property
for purposes of this Plan. The Board may utilize one or more Independent Third Parties.

 

2.28       “Nonqualified
Stock Option” means a nonqualified stock option, granted pursuant to this Plan, which is not an Incentive Stock
Option.

 

2.29       “Option
Price” means the price which must be paid by a Participant upon exercise of a Stock Option to purchase a share of
Common Stock.

 

2.30       “Other
Award” means an Award issued pursuant to Section 6.8 hereof.

 

2.31       “Outside
Director” means a director of the Company who is not an Employee or a Contractor.

 

2.32       “Participant”
means an Employee, Contractor or Outside Director to whom an Award is granted under this Plan.

 

2.33       “Performance
Award” means an Award hereunder of cash, shares of Common Stock, units or rights based upon, payable in, or otherwise
related to, Common Stock pursuant to Section 6.7 hereof.

 

2.34       “Performance
Goal” means any of the goals set forth in Section 6.10 hereof.

 

2.35       “Plan”
means this Snap Interactive, Inc. 2016 Long-Term Incentive Plan, as amended from time to time.

 

2.36       “Prior
Plan Awards” means (i) any awards under the Prior Plan that are outstanding on the Effective Date, and that, on
or after the Effective Date, are forfeited, expire or are canceled; and (ii) any shares subject to awards relating to Common Stock
under the Prior Plan that, on or after the Effective Date, are settled in cash.

 

2.37       “Prior
Plan” means the Snap Interactive, Inc. Amended and Restated 2011 Long-Term Incentive Plan effective as of May 24,
2011.

 

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2.38       “Reporting
Participant” means a Participant who is subject to the reporting requirements of Section 16 of the Exchange Act.

 

2.39       “Restricted
Stock” means shares of Common Stock issued or transferred to a Participant pursuant to Section 6.4 of this
Plan which are subject to restrictions or limitations set forth in this Plan and in the related Award Agreement.

 

2.40       “Restricted
Stock Units” means units awarded to Participants pursuant to Section 6.5 hereof, which are convertible into
Common Stock at such time as such units are no longer subject to restrictions as established by the Committee.

 

2.41       “Restriction
Period” is defined in Section 6.4(b)(i) hereof.

 

2.42       “Retirement”
means any Termination of Service solely due to retirement upon or after attainment of age sixty-five (65), or permitted early
retirement as determined by the Committee.

 

2.43       “SAR”
or “Stock Appreciation Right” means the right to receive an amount, in cash and/or Common Stock, equal
to the excess of the Fair Market Value of a specified number of shares of Common Stock as of the date the SAR is exercised (or,
as provided in the Award Agreement, converted) over the SAR Price for such shares.

 

2.44       “SAR
Price” means the exercise price or conversion price of each share of Common Stock covered by a SAR, determined on
the Date of Grant of the SAR.

 

2.45       “Spread”
is defined in Section 12.4(b) hereof.

 

2.46       “Stock
Option” means a Nonqualified Stock Option or an Incentive Stock Option.

 

2.47       “Subsidiary”
means (i) any corporation in an unbroken chain of corporations beginning with the Company, if each of the corporations other than
the last corporation in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes
of stock in one of the other corporations in the chain, (ii) any limited partnership, if the Company or any corporation described
in item (i) above owns a majority of the general partnership interest and a majority of the limited partnership interests entitled
to vote on the removal and replacement of the general partner, and (iii) any partnership or limited liability company, if the
partners or members thereof are composed only of the Company, any corporation listed in item (i) above or any limited partnership
listed in item (ii) above. “Subsidiaries” means more than one of any such corporations, limited partnerships, partnerships
or limited liability companies.

 

2.48       “Termination
of Service” occurs when a Participant who is (i) an Employee of the Company or any Subsidiary ceases to serve as
an Employee of the Company and its Subsidiaries, for any reason; (ii) an Outside Director of the Company or a Subsidiary ceases
to serve as a director of the Company and its Subsidiaries for any reason; or (iii) a Contractor of the Company or a Subsidiary
ceases to serve as a Contractor of the Company and its Subsidiaries for any reason. Except as may be necessary or desirable to
comply with applicable federal or state law, a “Termination of Service” shall not be deemed to have occurred when
a Participant who is an Employee becomes an Outside Director or Contractor or vice versa. If, however, a Participant who is an
Employee and who has an Incentive Stock Option ceases to be an Employee but does not suffer a Termination of Service, and if that
Participant does not exercise the Incentive Stock Option within the time required under Section 422 of the Code upon ceasing to
be an Employee, the Incentive Stock Option shall thereafter become a Nonqualified Stock Option. Notwithstanding the foregoing
provisions of this Section 2.48, in the event an Award issued under the Plan is subject to Section 409A of the Code, then,
in lieu of the foregoing definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the
definition of “Termination of Service” for purposes of such Award shall be the definition of “separation from
service” provided for under Section 409A of the Code and the regulations or other guidance issued thereunder.

 

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2.49        “Total
and Permanent Disability” means a Participant is qualified for long-term disability benefits under the Company’s
or Subsidiary’s disability plan or insurance policy; or, if no such plan or policy is then in existence or if the Participant
is not eligible to participate in such plan or policy, that the Participant, because of a physical or mental condition resulting
from bodily injury, disease, or mental disorder, is unable to perform his or her duties of employment for a period of six (6)
continuous months, as determined in good faith by the Committee, based upon medical reports or other evidence satisfactory to
the Committee; provided that, with respect to any Incentive Stock Option, Total and Permanent Disability shall have
the meaning given it under the rules governing Incentive Stock Options under the Code. Notwithstanding the foregoing provisions
of this Section 2.49, in the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu
of the foregoing definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition
of “Total and Permanent Disability” for purposes of such Award shall be the definition of “disability”
provided for under Section 409A of the Code and the regulations or other guidance issued thereunder.

 

ARTICLE
3

ADMINISTRATION

 

3.1         General
Administration; Establishment of Committee. Subject to the terms of this Article 3, the Plan shall be administered
by the Board or such committee of the Board as is designated by the Board to administer the Plan (the “Committee”).
The Committee shall consist of not fewer than two persons. Any member of the Committee may be removed at any time, with or without
cause, by resolution of the Board. Any vacancy occurring in the membership of the Committee may be filled by appointment by the
Board. At any time there is no Committee to administer the Plan, any references in this Plan to the Committee shall be deemed
to refer to the Board.

 

Membership
on the Committee shall be limited to those members of the Board who are “outside directors” under Section 162(m) of
the Code and “non-employee directors” as defined in Rule 16b-3 promulgated under the Exchange Act. The Committee shall
select one of its members to act as its Chairman. A majority of the Committee shall constitute a quorum, and the act of a majority
of the members of the Committee present at a meeting at which a quorum is present shall be the act of the Committee.

 

3.2         Designation
of Participants and Awards.

 

(a)         The
Committee or the Board shall determine and designate from time to time the eligible persons to whom Awards will be granted and
shall set forth in each related Award Agreement, where applicable, the Award Period, the Date of Grant, and such other terms,
provisions, limitations, and performance requirements, as are approved by the Committee, but not inconsistent with the Plan. The
Committee shall determine whether an Award shall include one type of Incentive or two or more Incentives granted in combination
or two or more Incentives granted in tandem (that is, a joint grant where exercise of one Incentive results in cancellation of
all or a portion of the other Incentive). Although the members of the Committee shall be eligible to receive Awards, all decisions
with respect to any Award, and the terms and conditions thereof, to be granted under the Plan to any member of the Committee shall
be made solely and exclusively by the other members of the Committee, or if such member is the only member of the Committee, by
the Board.

 

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(b)         Notwithstanding
Section 3.2(a), to the extent permitted by Applicable Law, the Board may, in its discretion and by a resolution adopted
by the Board, authorize one or more officers of the Company (an “Authorized Officer”) to (i) designate
one or more Employees as eligible persons to whom Nonqualified Stock Options, Incentive Stock Options or SARs will be granted
under the Plan and (ii) determine the number of shares of Common Stock that will be subject to such Nonqualified Stock Options,
Incentive Stock Options or SARs; provided, however, that the resolution of the Board granting such authority shall (x) specify
the total number of shares of Common Stock that may be made subject to the Nonqualified Stock Options, Incentive Stock Options
or SARs, (y) set forth the price or prices (or a formula by which such price or prices may be determined) to be paid for the purchase
of the Common Stock subject to such Nonqualified Stock Options, Incentive Stock Options or SARs, and (z) not authorize an officer
to designate himself as a recipient of any Nonqualified Stock Options, Incentive Stock Options or SARs.

 

3.3         Authority
of the Committee. The Committee, in its discretion, shall (i) interpret the Plan and Award Agreements (ii) prescribe, amend,
and rescind any rules and regulations, as necessary or appropriate for the administration of the Plan, (iii) establish performance
goals for an Award and certify the extent of their achievement, and (iv) make such other determinations or certifications and
take such other action as it deems necessary or advisable in the administration of the Plan. Any interpretation, determination,
or other action made or taken by the Committee shall be final, binding, and conclusive on all interested parties. The Committee’s
discretion set forth herein shall not be limited by any provision of the Plan, including any provision which by its terms is applicable
notwithstanding any other provision of the Plan to the contrary.

 

The
Committee may delegate to officers of the Company, pursuant to a written delegation, the authority to perform specified functions
under the Plan. Any actions taken by any officers of the Company pursuant to such written delegation of authority shall be deemed
to have been taken by the Committee.

 

With
respect to restrictions in the Plan that are based on the requirements of Rule 16b-3 promulgated under the Exchange Act, Section
422 of the Code, Section 162(m) of the Code, the rules of any exchange or inter-dealer quotation system upon which the Company’s
securities are listed or quoted, or any other Applicable Law to the extent that any such restrictions are no longer required by
Applicable Law, the Committee shall have the sole discretion and authority to grant Awards that are not subject to such mandated
restrictions and/or to waive any such mandated restrictions with respect to outstanding Awards.

 

ARTICLE
4

ELIGIBILITY

 

Any
Employee (including an Employee who is also a director or an officer), Contractor or Outside Director of the Company whose judgment,
initiative, and efforts contributed or may be expected to contribute to the successful performance of the Company is eligible
to participate in the Plan; provided that only Employees of a Corporation shall be eligible to receive Incentive Stock Options.
The Committee, upon its own action, may grant, but shall not be required to grant, an Award to any Employee, Contractor or Outside
Director. Awards may be granted by the Committee at any time and from time to time to new Participants, or to then Participants,
or to a greater or lesser number of Participants, and may include or exclude previous Participants, as the Committee shall determine.
Except as required by this Plan, Awards need not contain similar provisions. The Committee’s determinations under the Plan
(including without limitation determinations of which Employees, Contractors or Outside Directors, if any, are to receive Awards,
the form, amount and timing of such Awards, the terms and provisions of such Awards and the agreements evidencing same) need not
be uniform and may be made by it selectively among Participants who receive, or are eligible to receive, Awards under the Plan.

 

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ARTICLE
5

SHARES
SUBJECT TO PLAN

 

5.1         Number
Available for Awards. Subject to adjustment as provided in Articles 11 and 12 and subject to increase by any Prior
Plan Awards eligible for reuse pursuant to Section 5.2, the maximum number of shares of Common Stock that may be
delivered pursuant to Awards granted under the Plan is fifteen million (15,000,000) shares, of which one hundred percent (100%)
may be delivered pursuant to Incentive Stock Options. Subject to adjustment pursuant to Articles 11 and 12, the maximum
number of shares of Common Stock with respect to which Stock Options or SARs may be granted to an Executive Officer during any
calendar year is seven million (7,000,000) shares of Common Stock. Shares to be issued may be made available from authorized but
unissued Common Stock, Common Stock held by the Company in its treasury, or Common Stock purchased by the Company on the open
market or otherwise. During the term of this Plan, the Company will at all times reserve and keep available the number of shares
of Common Stock that shall be sufficient to satisfy the requirements of this Plan.

 

5.2         Reuse
of Shares. To the extent that any Award under this Plan or any Prior Plan Award shall be forfeited, shall expire or be canceled,
in whole or in part, then the number of shares of Common Stock covered by the Award or Prior Plan Award so forfeited, expired
or canceled may again be awarded pursuant to the provisions of this Plan. In the event that previously acquired shares of Common
Stock are delivered to the Company in full or partial payment of the exercise price for the exercise of a Stock Option granted
under this Plan, the number of shares of Common Stock available for future Awards under this Plan shall be reduced only by the
net number of shares of Common Stock issued upon the exercise of the Stock Option. Awards that may be satisfied either by the
issuance of shares of Common Stock or by cash or other consideration shall be counted against the maximum number of shares of
Common Stock that may be issued under this Plan only during the period that the Award is outstanding or to the extent the Award
is ultimately satisfied by the issuance of shares of Common Stock. Awards will not reduce the number of shares of Common Stock
that may be issued pursuant to this Plan if the settlement of the Award will not require the issuance of shares of Common Stock,
as, for example, a SAR that can be satisfied only by the payment of cash. Notwithstanding any provisions of the Plan to the contrary,
only shares forfeited back to the Company, shares canceled on account of termination, expiration or lapse of an Award, shares
surrendered in payment of the exercise price of an option or shares withheld for payment of applicable employment taxes and/or
withholding obligations resulting from the exercise of an option shall again be available for grant of Incentive Stock Options
under the Plan, but shall not increase the maximum number of shares described in Section 5.1 above as the maximum number
of shares of Common Stock that may be delivered pursuant to Incentive Stock Options.

 

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ARTICLE
6

GRANT
OF AWARDS

 

6.1         In
General.

 

(a)         The
grant of an Award shall be authorized by the Committee and shall be evidenced by an Award Agreement setting forth the Incentive
or Incentives being granted, the total number of shares of Common Stock subject to the Incentive(s), the Option Price (if applicable),
the Award Period, the Date of Grant, and such other terms, provisions, limitations, and performance objectives, as are approved
by the Committee, but (i) not inconsistent with the Plan, (ii) to the extent an Award issued under the Plan is subject to Section
409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance
issued thereunder, and (iii) to the extent the Committee determines that an Award shall comply with the requirements of Section
162(m) of the Code, in compliance with the applicable requirements of Section 162(m) of the Code and the regulations and other
guidance issued thereunder. The Company shall execute an Award Agreement with a Participant after the Committee approves the issuance
of an Award. Any Award that is an Incentive Stock Option granted pursuant to this Plan must be granted within ten (10) years of
the Board Approval Date. The Plan shall be submitted to the Company’s stockholders for approval at the first stockholder
meeting after the Board Approval Date; and no Awards may be granted under the Plan prior to the time of stockholder approval.
The grant of an Award to a Participant shall not be deemed either to entitle the Participant to, or to disqualify the Participant
from, receipt of any other Award under the Plan.

 

(b)         If
the Committee establishes a purchase price for an Award, the Participant must accept such Award within a period of thirty (30)
days (or such shorter period as the Committee may specify) after the Date of Grant by executing the applicable Award Agreement
and paying such purchase price.

 

(c)         Any
Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide 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.

 

6.2         Option
Price. The Option Price for any share of Common Stock which may be purchased under a Nonqualified Stock Option for any share
of Common Stock must be equal to or greater than the Fair Market Value of the share on the Date of Grant. The Option Price for
any share of Common Stock which may be purchased under an Incentive Stock Option must be at least equal to the Fair Market Value
of the share on the Date of Grant; if an Incentive Stock Option is granted to an Employee who owns or is deemed to own (by reason
of the attribution rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes
of stock of the Company (or any parent or Subsidiary), the Option Price shall be at least one hundred ten percent (110%) of the
Fair Market Value of the Common Stock on the Date of Grant.

 

6.3         Maximum
ISO Grants. The Committee may not grant Incentive Stock Options under the Plan to any Employee which would permit the aggregate
Fair Market Value (determined on the Date of Grant) of the Common Stock with respect to which Incentive Stock Options (under this
and any other plan of the Company and its Subsidiaries) are exercisable for the first time by such Employee during any calendar
year to exceed $100,000. To the extent any Stock Option granted under this Plan which is designated as an Incentive Stock Option
exceeds this limit or otherwise fails to qualify as an Incentive Stock Option, such Stock Option (or any such portion thereof)
shall be a Nonqualified Stock Option. In such case, the Committee shall designate which stock will be treated as Incentive Stock
Option stock by causing the issuance of a separate stock certificate and identifying such stock as Incentive Stock Option stock
on the Company’s stock transfer records.

 

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6.4         Restricted
Stock. If Restricted Stock is granted to or received by a Participant under an Award (including a Stock Option), the Committee
shall set forth in the related Award Agreement: (i) the number of shares of Common Stock awarded, (ii) the price, if any, to be
paid by the Participant for such Restricted Stock and the method of payment of the price, (iii) the time or times within which
such Award may be subject to forfeiture, (iv) specified Performance Goals of the Company, a Subsidiary, any division thereof or
any group of Employees of the Company, or other criteria, which the Committee determines must be met in order to remove any restrictions
(including vesting) on such Award, and (v) all other terms, limitations, restrictions, and conditions of the Restricted Stock,
which shall be consistent with this Plan, to the extent applicable and in the event the Committee determines that an Award shall
comply with the requirements of Section 162(m) of the Code, in compliance with the requirements of Section 162(m) of the Code
and the regulations and other guidance issued thereunder and, to the extent Restricted Stock granted under the Plan is subject
to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or
other guidance issued thereunder. The provisions of Restricted Stock need not be the same with respect to each Participant.

 

(a)         Legend
on Shares. Each Participant who is awarded or receives Restricted Stock shall be issued a stock certificate or certificates
in respect of such shares of Common Stock. Such certificate(s) shall be registered in the name of the Participant, and shall bear
an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, substantially
as provided in Section 15.9 of the Plan.

 

(b)         Restrictions
and Conditions. Shares of Restricted Stock shall be subject to the following restrictions and conditions:

 

(i)         Subject
to the other provisions of this Plan and the terms of the particular Award Agreements, during such period as may be determined
by the Committee commencing on the Date of Grant or the date of exercise of an Award (the “Restriction Period”),
the Participant shall not be permitted to sell, transfer, pledge or assign shares of Restricted Stock. Except for these limitations,
the Committee may in its sole discretion, remove any or all of the restrictions on such Restricted Stock whenever it may determine
that, by reason of changes in Applicable Laws or other changes in circumstances arising after the date of the Award, such action
is appropriate.

 

(ii)         Except
as provided in sub-paragraph (i) above or in the applicable Award Agreement, the Participant shall have, with respect to his or
her Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the shares, and the right
to receive any dividends thereon. Certificates for shares of Common Stock free of restriction under this Plan shall be delivered
to the Participant promptly after, and only after, the Restriction Period shall expire without forfeiture in respect of such shares
of Common Stock or after any other restrictions imposed on such shares of Common Stock by the applicable Award Agreement or other
agreement have expired. Certificates for the shares of Common Stock forfeited under the provisions of the Plan and the applicable
Award Agreement shall be promptly returned to the Company by the forfeiting Participant. Each Award Agreement shall require that
each Participant, in connection with the issuance of a certificate for Restricted Stock, shall endorse such certificate in blank
or execute a stock power in form satisfactory to the Company in blank and deliver such certificate and executed stock power to
the Company.

 

(iii)         The
Restriction Period of Restricted Stock shall commence on the Date of Grant or the date of exercise of an Award, as specified in
the Award Agreement, and, subject to Article 12 of the Plan, unless otherwise established by the Committee in the Award
Agreement setting forth the terms of the Restricted Stock, shall expire upon satisfaction of the conditions set forth in the Award
Agreement; such conditions may provide for vesting based on such Performance Goals, as may be determined by the Committee in its
sole discretion.

 

    	 	10	 

     

    

 

(iv)         Except
as otherwise provided in the particular Award Agreement, upon Termination of Service for any reason during the Restriction Period,
the nonvested shares of Restricted Stock shall be forfeited by the Participant. In the event a Participant has paid any consideration
to the Company for such forfeited Restricted Stock, the Committee shall specify in the Award Agreement that either (i) the Company
shall be obligated to, or (ii) the Company may, in its sole discretion, elect to, pay to the Participant, as soon as practicable
after the event causing forfeiture, in cash, an amount equal to the lesser of the total consideration paid by the Participant
for such forfeited shares or the Fair Market Value of such forfeited shares as of the date of Termination of Service, as the Committee,
in its sole discretion shall select. Upon any forfeiture, all rights of a Participant with respect to the forfeited shares of
the Restricted Stock shall cease and terminate, without any further obligation on the part of the Company.

 

6.5         SARs.
The Committee may grant SARs to any Participant, either as a separate Award or in connection with a Stock Option. SARs shall
be subject to such terms and conditions as the Committee shall impose, provided that such terms and conditions are (i) not inconsistent
with the Plan, (ii) to the extent a SAR issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable
requirements of Section 409A of the Code and the regulations or other guidance issued thereunder, and (iii) to the extent the
Committee determines that a SAR shall comply with the requirements of Section 162(m) of the Code, in compliance with the applicable
requirements of Section 162(m) and the regulations and other guidance issued thereunder. The grant of the SAR may provide that
the holder may be paid for the value of the SAR either in cash or in shares of Common Stock, or a combination thereof. In the
event of the exercise of a SAR payable in shares of Common Stock, the holder of the SAR shall receive that number of whole shares
of Common Stock having an aggregate Fair Market Value on the date of exercise equal to the value obtained by multiplying (i) the
difference between the Fair Market Value of a share of Common Stock on the date of exercise over the SAR Price as set forth in
such SAR (or other value specified in the agreement granting the SAR), by (ii) the number of shares of Common Stock as to which
the SAR is exercised, with a cash settlement to be made for any fractional shares of Common Stock. The SAR Price for any share
of Common Stock subject to a SAR may be equal to or greater than the Fair Market Value of the share on the Date of Grant. The
Committee, in its sole discretion, may place a ceiling on the amount payable upon exercise of a SAR, but any such limitation shall
be specified at the time that the SAR is granted.

 

6.6         Restricted
Stock Units. Restricted Stock Units may be awarded or sold to any Participant under such terms and conditions as shall be
established by the Committee, provided, however, that such terms and conditions are (i) not inconsistent with the Plan, (ii) to
the extent a Restricted Stock Unit issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable
requirements of Section 409A of the Code and the regulations or other guidance issued thereunder, and (iii) to the extent the
Committee determines that a Restricted Stock Unit award shall comply with the requirements of Section 162(m) of the Code, in compliance
with the applicable requirements of Section 162(m) and the regulations and other guidance issued thereunder. The grant of a Restricted
Stock Unit may provide that the holder may be paid for the value of the Restricted Stock Unit either in cash or shares of Common
Stock or a combination thereof. Restricted Stock Units shall be subject to such restrictions as the Committee determines, including,
without limitation, (a) a prohibition against sale, assignment, transfer, pledge, hypothecation or other encumbrance for a specified
period; or (b) a requirement that the holder forfeit (or in the case of shares of Common Stock or units sold to the Participant,
resell to the Company at cost) such shares or units in the event of Termination of Service during the period of restriction.

 

    	 	11	 

     

    

 

6.7         Performance
Awards.

 

(a)         The
Committee may grant Performance Awards to one or more Participants. The terms and conditions of Performance Awards shall be specified
at the time of the grant and may include provisions establishing the performance period, the Performance Goals to be achieved
during a performance period, and the maximum or minimum settlement values, provided that such terms and conditions are (i) not
inconsistent with the Plan and (ii) to the extent a Performance Award issued under the Plan is subject to Section 409A of the
Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued
thereunder. If the Performance Award is to be in shares of Common Stock, the Performance Awards may provide for the issuance of
the shares of Common Stock at the time of the grant of the Performance Award or at the time of the certification by the Committee
that the Performance Goals for the performance period have been met; provided, however, if shares of Common Stock are issued at
the time of the grant of the Performance Award and if, at the end of the performance period, the Performance Goals are not certified
by the Committee to have been fully satisfied, then, notwithstanding any other provisions of this Plan to the contrary, the Common
Stock shall be forfeited in accordance with the terms of the grant to the extent the Committee determines that the Performance
Goals were not met. The forfeiture of shares of Common Stock issued at the time of the grant of the Performance Award due to failure
to achieve the established Performance Goals shall be separate from and in addition to any other restrictions provided for in
this Plan that may be applicable to such shares of Common Stock. Each Performance Award granted to one or more Participants shall
have its own terms and conditions.

 

To
the extent the Committee determines that a Performance Award shall comply with the requirements of Section 162(m) of the Code
and the regulations and other guidance issued thereunder, and if it is determined to be necessary in order to satisfy Section
162(m) of the Code, at the time of the grant of a Performance Award (other than a Stock Option) and to the extent permitted under
Section 162(m) of the Code and the regulations issued thereunder, the Committee shall provide for the manner in which the Performance
Goals shall be reduced to take into account the negative effect on the achievement of specified levels of the Performance Goals
which may result from enumerated corporate transactions, events that are of an unusual nature or indicate infrequency of occurrence,
extraordinary events, accounting changes and other similar occurrences which were unanticipated at the time the Performance Goal
was initially established. In no event, however, may the Committee increase the amount earned under such a Performance Award,
unless the reduction in the Performance Goals would reduce or eliminate the amount to be earned under the Performance Award and
the Committee determines not to make such reduction or elimination.

 

With
respect to a Performance Award that is not intended to satisfy the requirements of Code Section 162(m), if the Committee determines,
in its sole discretion, that the established performance measures or objectives are no longer suitable because of a change in
the Company’s business, operations, corporate structure, or for other reasons that the Committee deemed satisfactory, the
Committee may modify the performance measures or objectives and/or the performance period.

 

(b)         Performance
Awards may be valued by reference to the Fair Market Value of a share of Common Stock or according to any formula or method deemed
appropriate by the Committee, in its sole discretion, including, but not limited to, achievement of Performance Goals or other
specific financial, production, sales or cost performance objectives that the Committee believes to be relevant to the Company’s
business and/or remaining in the employ of the Company or a Subsidiary for a specified period of time. Performance Awards may
be paid in cash, shares of Common Stock, or other consideration, or any combination thereof. If payable in shares of Common Stock,
the consideration for the issuance of such shares may be the achievement of the performance objective established at the time
of the grant of the Performance Award. Performance Awards may be payable in a single payment or in installments and may be payable
at a specified date or dates or upon attaining the performance objective. The extent to which any applicable performance objective
has been achieved shall be conclusively determined by the Committee.

 

    	 	12	 

     

    

 

(c)         Notwithstanding
the foregoing, in order to comply with the requirements of Section 162(m) of the Code, if applicable, no Participant may receive
in any calendar year Performance Awards intended to comply with the requirements of Section 162(m) of the Code which have an aggregate
value of more than $5,000,000, and if such Performance Awards involve the issuance of shares of Common Stock, said
aggregate value shall be based on the Fair Market Value of such shares on the time of the grant of the Performance Award. In no
event, however, shall any Performance Awards not intended to comply with the requirements of Section 162(m) of the Code be issued
contingent upon the failure to attain the Performance Goals applicable to any Performance Awards granted hereunder that the Committee
intends to comply with the requirements of Section 162(m) of the Code.

 

6.8         Dividend
Equivalent Rights. The Committee may grant a Dividend Equivalent Right to any Participant, either as a component of another
Award or as a separate Award. The terms and conditions of the Dividend Equivalent Right shall be specified by the grant; provided
that the terms and conditions shall comply with Section 409A of the Code, if applicable. 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 Common Stock
(which may thereafter accrue additional dividend equivalents). Any such reinvestment shall be at the Fair Market Value at the
time thereof. Dividend Equivalent Rights may be settled in cash or shares of Common Stock, or a combination thereof, in a single
payment or in installments. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend
Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award, and
that such Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions different from
such other Award, provided, however, that in no event may a Dividend Equivalent Right be settled prior to the date that such other
Award is vested.

 

6.9         Other
Awards. The Committee may grant to any Participant other forms of Awards, based upon, payable in, or otherwise related to,
in whole or in part, shares of Common Stock, if the Committee determines that such other form of Award is consistent with the
purpose and restrictions of this Plan. The terms and conditions of such other form of Award shall be specified by the grant. Such
Other Awards may be granted for no cash consideration, for such minimum consideration as may be required by Applicable Law, or
for such other consideration as may be specified by the grant.

 

6.10       Performance
Goals. Awards of Restricted Stock, Restricted Stock Units, Performance Award and Other Awards (whether relating to cash or
shares of Common Stock) under the Plan may be made subject to the attainment of Performance Goals relating to one or more business
criteria which, where applicable, shall be within the meaning of Section 162(m) of the Code and consist of one or more or any
combination of the following criteria: cash flow; cost; revenues; sales; ratio of debt to debt plus equity; net borrowing, credit
quality or debt ratings; profit before tax; economic profit; earnings before interest and taxes; earnings before interest, taxes,
depreciation and amortization; gross margin; earnings per share (whether on a pre-tax, after-tax, operational or other basis);
operating earnings; capital expenditures; expenses or expense levels; economic value added; ratio of operating earnings to capital
spending or any other operating ratios; free cash flow; net profit; net sales; net asset value per share; the accomplishment of
mergers, acquisitions, dispositions, public offerings or similar extraordinary business transactions; sales growth; price of the
Company’s Common Stock; return on assets, equity or stockholders’ equity; market share; inventory levels, inventory
turn or shrinkage; or total return to stockholders (“Performance Criteria”). Any Performance Criteria
may be used to measure the performance of the Company as a whole or any business unit of the Company and may be measured relative
to a peer group or index. Any Performance Criteria may include or exclude (i) events that are of an unusual nature or indicate
infrequency of occurrence, (ii) gains or losses on the disposition of a business, (iii) changes in tax or accounting regulations
or laws, (iv) the effect of a merger or acquisition, as identified in the Company’s quarterly and annual earnings releases,
or (v) other similar occurrences. In all other respects, Performance Criteria shall be calculated in accordance with the Company’s
financial statements, under generally accepted accounting principles, or under a methodology established by the Committee prior
to the issuance of an Award which is consistently applied and identified in the audited financial statements, including footnotes,
or the Compensation Discussion and Analysis section of the Company’s annual report. However, to the extent Section 162(m)
of the Code is applicable, the Committee may not in any event increase the amount of compensation payable to an individual upon
the attainment of a Performance Goal.

 

    	 	13	 

     

    

 

6.11       Tandem
Awards. The Committee may grant two or more Incentives in one Award in the form of a “tandem Award,” so that the
right of the Participant to exercise one Incentive shall be canceled if, and to the extent, the other Incentive is exercised.
For example, if a Stock Option and a SAR are issued in a tandem Award, and the Participant exercises the SAR with respect to one
hundred (100) shares of Common Stock, the right of the Participant to exercise the related Stock Option shall be canceled to the
extent of one hundred (100) shares of Common Stock.

 

6.12       Recoupment for Restatements. Notwithstanding any other language in this Plan to the contrary, the Company may recoup all or
any portion of any shares or cash paid to a Participant in connection with an Award, in the event of a restatement of the Company’s
financial statements as set forth in the Company’s clawback policy, if any, approved by the Company’s Board from time
to time.

 

ARTICLE
7

AWARD
PERIOD; VESTING

 

7.1         Award
Period. Subject to the other provisions of this Plan, the Committee may, in its discretion, provide that an Incentive may
not be exercised in whole or in part for any period or periods of time or beyond any date specified in the Award Agreement. Except
as provided in the Award Agreement, an Incentive may be exercised in whole or in part at any time during its term. The Award Period
for an Incentive shall be reduced or terminated upon Termination of Service. No Incentive granted under the Plan may be exercised
at any time after the end of its Award Period. No portion of any Incentive may be exercised after the expiration of ten (10) years
from its Date of Grant. However, if an Employee owns or is deemed to own (by reason of the attribution rules of Section 424(d)
of the Code) more than 10% of the combined voting power of all classes of stock of the Company (or any parent or Subsidiary) and
an Incentive Stock Option is granted to such Employee, the term of such Incentive Stock Option (to the extent required by the
Code at the time of grant) shall be no more than five (5) years from the Date of Grant.

 

7.2         Vesting.
The Committee, in its sole discretion, may determine that an Incentive will be immediately vested in whole or in part, or
that all or any portion may not be vested until a date, or dates, subsequent to its Date of Grant, or until the occurrence of
one or more specified events, subject in any case to the terms of the Plan. If the Committee imposes conditions upon vesting,
then, subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion
of the Incentive may be vested.

 

    	 	14	 

     

    

 

ARTICLE
8

EXERCISE
OR CONVERSION OF INCENTIVE

 

8.1         In
General. A vested Incentive may be exercised or converted, during its Award Period, subject to limitations and restrictions
set forth in the Award Agreement.

 

8.2         Securities
Law and Exchange Restrictions. In no event may an Incentive be exercised or shares of Common Stock be issued pursuant to an
Award if a necessary listing or quotation of the shares of Common Stock on a stock exchange or inter-dealer quotation system or
any registration under state or federal securities laws required under the circumstances has not been accomplished.

 

8.3         Exercise
of Stock Option.

 

(a)         In
General. If a Stock Option is exercisable prior to the time it is vested, the Common Stock obtained on the exercise of the
Stock Option shall be Restricted Stock which is subject to the applicable provisions of the Plan and the Award Agreement. If the
Committee imposes conditions upon exercise, then subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate
the date on which all or any portion of the Stock Option may be exercised. No Stock Option may be exercised for a fractional share
of Common Stock. The granting of a Stock Option shall impose no obligation upon the Participant to exercise that Stock Option.

 

(b)         Notice
and Payment. Subject to such administrative regulations as the Committee may from time to time adopt, a Stock Option may be
exercised by the delivery of written notice to the Committee setting forth the number of shares of Common Stock with respect to
which the Stock Option is to be exercised (the “Exercise Notice”) and the date of exercise thereof (the
“Exercise Date”) with respect to any Stock Option shall be the date that the Participant has delivered
both the Exercise Notice and consideration to the Company with a value equal to the total Option Price of the shares to be purchased
(plus any employment tax withholding or other tax payment due with respect to such Award), payable as provided in the Award Agreement,
which may provide for payment in any one or more of the following ways: (a) cash or check, bank draft, or money order payable
to the order of the Company, (b) Common Stock (including Restricted Stock) owned by the Participant on the Exercise Date, valued
at its Fair Market Value on the Exercise Date, and which the Participant has not acquired from the Company within six (6) months
prior to the Exercise Date, (c) by delivery (including by FAX or electronic transmission) to the Company or its designated agent
of an executed irrevocable option exercise form (or, to the extent permitted by the Company, exercise instructions, which may
be communicated in writing, telephonically, or electronically) together with irrevocable instructions from the Participant to
a broker or dealer, reasonably acceptable to the Company, to sell certain of the shares of Common Stock purchased upon exercise
of the Stock Option or to pledge such shares as collateral for a loan and promptly deliver to the Company the amount of sale or
loan proceeds necessary to pay such purchase price, and/or (d) in any other form of valid consideration that is acceptable to
the Committee in its sole discretion. In the event that shares of Restricted Stock are tendered as consideration for the exercise
of a Stock Option, a number of shares of Common Stock issued upon the exercise of the Stock Option equal to the number of shares
of Restricted Stock used as consideration therefor shall be subject to the same restrictions and provisions as the Restricted
Stock so tendered. If the Participant fails to deliver the consideration described in this Section 8.3(b) within three (3) business
days of the date of the Exercise Notice, then the Exercise Notice shall be null and void and the Company will have no obligation
to deliver any shares of Common Stock to the Participant in connection with such Exercise Notice.

 

    	 	15	 

     

    

 

(c)         Issuance
of Certificate. Except as otherwise provided in Section 6.4 hereof (with respect to shares of Restricted Stock) or
in the applicable Award Agreement, upon payment of all amounts due from the Participant, the Company shall cause certificates
for the Common Stock then being purchased to be delivered as directed by the Participant (or the person exercising the Participant’s
Stock Option in the event of his death) at its principal business office promptly after the Exercise Date; provided that if the
Participant has exercised an Incentive Stock Option, the Company may at its option retain physical possession of the certificate
evidencing the shares acquired upon exercise until the expiration of the holding periods described in Section 422(a)(1) of the
Code. The obligation of the Company to deliver shares of Common Stock shall, however, be subject to the condition that, if at
any time the Committee shall determine in its discretion that the listing, registration, or qualification of the Stock Option
or the Common Stock upon any securities exchange or inter-dealer quotation system or under any state or federal law, or the consent
or approval of any governmental regulatory body, is necessary as a condition of, or in connection with, the Stock Option or the
issuance or purchase of shares of Common Stock thereunder, the Stock Option may not be exercised in whole or in part unless such
listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not reasonably
acceptable to the Committee.

 

(e)         Failure
to Pay. Except as may otherwise be provided in an Award Agreement, if the Participant fails to pay for any of the Common Stock
specified in such notice or fails to accept delivery thereof, that portion of the Participant’s Stock Option and right to
purchase such Common Stock may be forfeited by the Participant.

 

8.4         SARs.
Subject to the conditions of this Section 8.4 and such administrative regulations as the Committee may from time to
time adopt, a SAR may be exercised by the delivery (including by FAX) of an Exercise Notice to the Committee setting forth the
number of shares of Common Stock with respect to which the SAR is to be exercised and the Exercise Date, which with respect to
any SAR shall be the date that the Participant has delivered both the Exercise Notice and consideration to the Company with a
value equal to any employment tax withholding or other tax payment due with respect to such SAR. Subject to the terms of the Award
Agreement and only if permissible under Section 409A of the Code and the regulations or other guidance issued thereunder (or,
if not so permissible, at such time as permitted by Section 409A of the Code and the regulations or other guidance issued thereunder),
the Participant shall receive from the Company in exchange therefor in the discretion of the Committee, and subject to the terms
of the Award Agreement:

 

(i)         cash
in an amount equal to the excess (if any) of the Fair Market Value (as of the Exercise Date, or if provided in the Award Agreement,
conversion, of the SAR) per share of Common Stock over the SAR Price per share specified in such SAR, multiplied by the total
number of shares of Common Stock of the SAR being surrendered;

 

(ii)         that
number of shares of Common Stock having an aggregate Fair Market Value (as of the Exercise Date, or if provided in the Award Agreement,
conversion, of the SAR) equal to the amount of cash otherwise payable to the Participant, with a cash settlement to be made for
any fractional share interests; or

 

(iii)         the
Company may settle such obligation in part with shares of Common Stock and in part with cash.

 

The
distribution of any cash or Common Stock pursuant to the foregoing sentence shall be made at such time as set forth in the Award
Agreement.

 

    	 	16	 

     

    

 

8.5         Disqualifying
Disposition of Incentive Stock Option. If shares of Common Stock acquired upon exercise of an Incentive Stock Option are disposed
of by a Participant prior to the expiration of either two (2) years from the Date of Grant of such Stock Option or one (1) year
from the transfer of shares of Common Stock to the Participant pursuant to the exercise of such Stock Option, or in any other
disqualifying disposition within the meaning of Section 422 of the Code, such Participant shall notify the Company in writing
of the date and terms of such disposition. A disqualifying disposition by a Participant shall not affect the status of any other
Stock Option granted under the Plan as an Incentive Stock Option within the meaning of Section 422 of the Code.

 

ARTICLE
9

AMENDMENT
OR DISCONTINUANCE

 

Subject
to the limitations set forth in this Article 9, the Board may at any time and from time to time, without the consent of
the Participants, alter, amend, revise, suspend, or discontinue the Plan in whole or in part; provided, however, that no amendment
for which stockholder approval is required either (i) by any securities exchange or inter-dealer quotation system on which the
Common Stock is listed or traded or (ii) in order for the Plan and Incentives awarded under the Plan to continue to comply with
Sections 162(m), 421, and 422 of the Code, including any successors to such Sections, or other Applicable Law, shall be effective
unless such amendment shall be approved by the requisite vote of the stockholders of the Company entitled to vote thereon. Any
such amendment shall, to the extent deemed necessary or advisable by the Committee, be applicable to any outstanding Incentives
theretofore granted under the Plan, notwithstanding any contrary provisions contained in any Award Agreement. In the event of
any such amendment to the Plan, the holder of any Incentive outstanding under the Plan shall, upon request of the Committee and
as a condition to the exercisability thereof, execute a conforming amendment in the form prescribed by the Committee to any Award
Agreement relating thereto. Notwithstanding anything contained in this Plan to the contrary, unless required by law, no action
contemplated or permitted by this Article 9 shall adversely affect any rights of Participants or obligations of the Company
to Participants with respect to any Incentive theretofore granted under the Plan without the consent of the affected Participant.

 

ARTICLE
10

TERM

 

The
Plan shall be effective from the Effective Date. Unless sooner terminated by action of the Board, the Plan will terminate on the
tenth anniversary of the Effective Date, but Incentives granted before that date will continue to be effective in accordance with
their terms and conditions.

 

ARTICLE
11

CAPITAL
ADJUSTMENTS

 

In
the event that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property),
recapitalization, stock split, reverse stock split, rights offering, reorganization, merger, consolidation, split-up, spin-off,
split-off, combination, subdivision, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants
or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction or event affects
the fair value of an Award, then the Committee shall adjust any or all of the following so that the fair value of the Award immediately
after the transaction or event is equal to the fair value of the Award immediately prior to the transaction or event (i) the number
of shares and type of Common Stock (or the securities or property) which thereafter may be made the subject of Awards, (ii) the
number of shares and type of Common Stock (or other securities or property) subject to outstanding Awards, (iii) the number of
shares and type of Common Stock (or other securities or property) specified as the annual per-participant limitation under Section
5.1 of the Plan, (iv) the Option Price of each outstanding Award, (v) the amount, if any, the Company pays for forfeited shares
of Common Stock in accordance with Section 6.4, and (vi) the number of or SAR Price of shares of Common Stock then subject
to outstanding SARs previously granted and unexercised under the Plan to the end that the same proportion of the Company’s
issued and outstanding shares of Common Stock in each instance shall remain subject to exercise at the same aggregate SAR Price;
provided however, that the number of shares of Common Stock (or other securities or property) subject to any Award shall always
be a whole number. Notwithstanding the foregoing, no such adjustment shall be made or authorized to the extent that such adjustment
would cause the Plan or any Stock Option to violate Section 422 of the Code or Section 409A of the Code. Such adjustments shall
be made in accordance with the rules of any securities exchange, stock market, or stock quotation system to which the Company
is subject.

 

    	 	17	 

     

    

 

Upon
the occurrence of any such adjustment, the Company shall provide notice to each affected Participant of its computation of such
adjustment which shall be conclusive and shall be binding upon each such Participant.

 

ARTICLE
12

RECAPITALIZATION,
MERGER AND CONSOLIDATION

 

12.1       No
Effect on Company’s Authority. The existence of this Plan and Incentives granted hereunder shall not affect in any way
the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations,
or other changes in the Company’s capital structure and its business, or any Change in Control, or any merger or consolidation
of the Company, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the
Common Stock or the rights thereof (or any rights, options, or warrants to purchase same), or the dissolution or liquidation of
the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether
of a similar character or otherwise.

 

12.2       Conversion
of Incentives Where Company Survives. Subject to any required action by the stockholders and except as otherwise provided
by Section 12.4 hereof or as may be required to comply with Section 409A of the Code and the regulations or other guidance
issued thereunder, if the Company shall be the surviving or resulting corporation in any merger, consolidation or share exchange,
any Incentive granted hereunder shall pertain to and apply to the securities or rights (including cash, property, or assets) to
which a holder of the number of shares of Common Stock subject to the Incentive would have been entitled.

 

12.3       Exchange
or Cancellation of Incentives Where Company Does Not Survive. Except as otherwise provided by Section 12.4 hereof or
as may be required to comply with Section 409A of the Code and the regulations or other guidance issued thereunder, in the event
of any merger, consolidation or share exchange pursuant to which the Company is not the surviving or resulting corporation, there
shall be substituted for each share of Common Stock subject to the unexercised portions of outstanding Incentives, that number
of shares of each class of stock or other securities or that amount of cash, property, or assets of the surviving, resulting or
consolidated company which were distributed or distributable to the stockholders of the Company in respect to each share of Common
Stock held by them, such outstanding Incentives to be thereafter exercisable for such stock, securities, cash, or property in
accordance with their terms.

 

    	 	18	 

     

    

 

12.4       Cancellation
of Incentives. Notwithstanding the provisions of Sections 12.2 and 12.3 hereof, and except as may be required to comply
with Section 409A of the Code and the regulations or other guidance issued thereunder, all Incentives granted hereunder may be
canceled by the Company, in its sole discretion, as of the effective date of any Change in Control, merger, consolidation or share
exchange, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common
Stock or the rights thereof (or any rights, options, or warrants to purchase same), or of any proposed sale of all or substantially
all of the assets of the Company, or of any dissolution or liquidation of the Company, by either:

 

(a)         giving
notice to each holder thereof or his personal representative of its intention to cancel those Incentives for which the issuance
of shares of Common Stock involved payment by the Participant for such shares, and permitting the purchase during the thirty (30)
day period next preceding such effective date of any or all of the shares of Common Stock subject to such outstanding Incentives,
including in the Board’s discretion some or all of the shares as to which such Incentives would not otherwise be vested
and exercisable; or

 

(b)         in
the case of Incentives that are either (i) settled only in shares of Common Stock, or (ii) at the election of the Participant,
settled in shares of Common Stock, paying the holder thereof an amount equal to a reasonable estimate of the difference between
the net amount per share payable in such transaction or as a result of such transaction, and the price per share of such Incentive
to be paid by the Participant (hereinafter the “Spread”), multiplied by the number of shares subject
to the Incentive. In cases where the shares constitute, or would after exercise, constitute Restricted Stock, the Company, in
its discretion, may include some or all of those shares in the calculation of the amount payable hereunder. In estimating the
Spread, appropriate adjustments to give effect to the existence of the Incentives shall be made, such as deeming the Incentives
to have been exercised, with the Company receiving the exercise price payable thereunder, and treating the shares receivable upon
exercise of the Incentives as being outstanding in determining the net amount per share. In cases where the proposed transaction
consists of the acquisition of assets of the Company, the net amount per share shall be calculated on the basis of the net amount
receivable with respect to shares of Common Stock upon a distribution and liquidation by the Company after giving effect to expenses
and charges, including but not limited to taxes, payable by the Company before such liquidation could be completed.

 

(c)         An
Award that by its terms would be fully vested or exercisable upon a Change in Control will be considered vested or exercisable
for purposes of Section 12.4(a) hereof.

 

ARTICLE
13

LIQUIDATION
OR DISSOLUTION

 

Subject
to Section 12.4 hereof, in case the Company shall, at any time while any Incentive under this Plan shall be in force and
remain unexpired, (i) sell all or substantially all of its property, or (ii) dissolve, liquidate, or wind up its affairs, then
each Participant shall be entitled to receive, in lieu of each share of Common Stock of the Company which such Participant would
have been entitled to receive under the Incentive, the same kind and amount of any securities or assets as may be issuable, distributable,
or payable upon any such sale, dissolution, liquidation, or winding up with respect to each share of Common Stock of the Company.
If the Company shall, at any time prior to the expiration of any Incentive, make any partial distribution of its assets, in the
nature of a partial liquidation, whether payable in cash or in kind (but excluding the distribution of a cash dividend payable
out of earned surplus and designated as such) and an adjustment is determined by the Committee to be appropriate to prevent the
dilution of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such
manner as it may deem equitable, make such adjustment in accordance with the provisions of Article 11 hereof.

 

    	 	19	 

     

    

 

ARTICLE
14

INCENTIVES
IN SUBSTITUTION FOR

INCENTIVES
GRANTED BY OTHER ENTITIES

 

Incentives
may be granted under the Plan from time to time in substitution for similar instruments held by employees, independent contractors
or directors of a corporation, partnership, or limited liability company who become or are about to become Employees, Contractors
or Outside Directors of the Company or any Subsidiary as a result of a merger or consolidation of the employing corporation with
the Company, the acquisition by the Company of equity of the employing entity, or any other similar transaction pursuant to which
the Company becomes the successor employer. The terms and conditions of the substitute Incentives so granted may vary from the
terms and conditions set forth in this Plan to such extent as the Committee at the time of grant may deem appropriate to conform,
in whole or in part, to the provisions of the incentives in substitution for which they are granted.

 

ARTICLE
15

MISCELLANEOUS
PROVISIONS

 

15.1       Investment
Intent. The Company may require that there be presented to and filed with it by any Participant under the Plan, such evidence
as it may deem necessary to establish that the Incentives granted or the shares of Common Stock to be purchased or transferred
are being acquired for investment and not with a view to their distribution.

 

15.2       No
Right to Continued Employment. Neither the Plan nor any Incentive granted under the Plan shall confer upon any Participant
any right with respect to continuance of employment by the Company or any Subsidiary.

 

15.3       Indemnification
of Board and Committee. No member of the Board or the Committee, nor any officer or Employee of the Company acting on behalf
of the Board or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good
faith with respect to the Plan, and all members of the Board and the Committee, each officer of the Company, and each Employee
of the Company acting on behalf of the Board or the Committee shall, to the extent permitted by law, be fully indemnified and
protected by the Company in respect of any such action, determination, or interpretation to the fullest extent provided by law.
Except to the extent required by any unwaiveable requirement under applicable law, no member of the Board or the Committee (and
no Subsidiary of the Company) shall have any duties or liabilities, including without limitation any fiduciary duties, to any
Participant (or any Person claiming by and through any Participant) as a result of this Plan, any Award Agreement or any Claim
arising hereunder and, to the fullest extent permitted under applicable law, each Participant (as consideration for receiving
and accepting an Award Agreement) irrevocably waives and releases any right or opportunity such Participant might have to assert
(or participate or cooperate in) any Claim against any member of the Board or the Committee and any Subsidiary of the Company
arising out of this Plan.

 

15.4       Effect
of the Plan. Neither the adoption of this Plan nor any action of the Board or the Committee shall be deemed to give any person
any right to be granted an Award or any other rights except as may be evidenced by an Award Agreement, or any amendment thereto,
duly authorized by the Committee and executed on behalf of the Company, and then only to the extent and upon the terms and conditions
expressly set forth therein.

 

    	 	20	 

     

    

 

15.5       Compliance
with Other Laws and Regulations. Notwithstanding anything contained herein to the contrary, the Company shall not be required
to sell or issue shares of Common Stock under any Incentive if the issuance thereof would constitute a violation by the Participant
or the Company of any provisions of any law or regulation of any governmental authority or any national securities exchange or
inter-dealer quotation system or other forum in which shares of Common Stock are quoted or traded (including without limitation
Section 16 of the Exchange Act and Section 162(m) of the Code); and, as a condition of any sale or issuance of shares of Common
Stock under an Incentive, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary
or advisable to assure compliance with any such law or regulation. The Plan, the grant and exercise of Incentives hereunder, and
the obligation of the Company to sell and deliver shares of Common Stock, shall be subject to all applicable federal and state
laws, rules and regulations and to such approvals by any government or regulatory agency as may be required.

 

15.6       Tax
Requirements. The Company or, if applicable, any Subsidiary (for purposes of this Section 15.6, the term “Company”
shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts paid in cash or other form
in connection with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection with an Award
granted under this Plan. The Company may, in its sole discretion, also require the Participant receiving shares of Common Stock
issued under the Plan to pay the Company the amount of any taxes that the Company is required to withhold in connection with the
Participant’s income arising with respect to the Award. Such payments shall be required to be made when requested by the
Company and may be required to be made prior to the delivery of any certificate representing shares of Common Stock. Such payment
may be made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional
shares under (iii) below) the required tax withholding obligations of the Company; (ii) if the Company, in its sole discretion,
so consents in writing, the actual delivery by the exercising Participant to the Company of shares of Common Stock that the Participant
has not acquired from the Company within six (6) months prior to the date of exercise, which shares so delivered have an aggregate
Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding
payment; (iii) if the Company, in its sole discretion, so consents in writing, the Company’s withholding of a number of
shares to be delivered upon the vesting or exercise of the Award, which shares so withheld have an aggregate fair market value
that equals (but does not exceed) the required tax withholding payment; (iv) if the Company, in its sole discretion, so consents
in writing, arrange for the sale of a number of shares to be delivered upon the exercise or vesting of the Award (on the Participant’s
behalf and at his or her direction pursuant to a written authorization) with an aggregate fair market value that equals (but does
not exceed) the required tax withholding payment; or (v) any combination of (i), (ii), (iii), or (iv). The Company may, in its
sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant. The
Committee may in the Award Agreement impose any additional tax requirements or provisions that the Committee deems necessary or
desirable.

 

15.7       Assignability.
Incentive Stock Options may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than
by will or the laws of descent and distribution and may be exercised during the lifetime of the Participant only by the Participant
or the Participant’s legally authorized representative, and each Award Agreement in respect of an Incentive Stock Option
shall so provide. The designation by a Participant of a beneficiary will not constitute a transfer of the Stock Option. The Committee
may waive or modify any limitation contained in the preceding sentences of this Section 15.7 that is not required for compliance
with Section 422 of the Code.

 

Except
as otherwise provided herein, Nonqualified Stock Options and SARs may not be transferred, assigned, pledged, hypothecated or otherwise
conveyed or encumbered other than by will or the laws of descent and distribution. Notwithstanding the foregoing, the Committee
may, in its discretion, authorize all or a portion of a Nonqualified Stock Option or SAR to be granted to a Participant on terms
which permit transfer by such Participant to (i) the spouse (or former spouse), children or grandchildren of the Participant (“Immediate
Family Members”), (ii) a trust or trusts for the exclusive benefit of such Immediate Family Members, (iii) a partnership
in which the only partners are (1) such Immediate Family Members and/or (2) entities which are controlled by the Participant and/or
Immediate Family Members, (iv) an entity exempt from federal income tax pursuant to Section 501(c)(3) of the Code or any successor
provision, or (v) a split interest trust or pooled income fund described in Section 2522(c)(2) of the Code or any successor provision,
provided that (x) there shall be no consideration for any such transfer, (y) the Award Agreement pursuant to which such
Nonqualified Stock Option or SAR is granted must be approved by the Committee and must expressly provide for transferability in
a manner consistent with this Section, and (z) subsequent transfers of transferred Nonqualified Stock Options or SARs shall be
prohibited except those by will or the laws of descent and distribution.

 

    	 	21	 

     

    

 

Following
any transfer, any such Nonqualified Stock Option and SAR shall continue to be subject to the same terms and conditions as were
applicable immediately prior to transfer, provided that for purposes of Articles 8, 9, 11, 13 and 15 hereof the term “Participant”
shall be deemed to include the transferee. The events of Termination of Service shall continue to be applied with respect to the
original Participant, following which the Nonqualified Stock Options and SARs shall be exercisable or convertible by the transferee
only to the extent and for the periods specified in the Award Agreement. The Committee and the Company shall have no obligation
to inform any transferee of a Nonqualified Stock Option or SAR of any expiration, termination, lapse or acceleration of such Stock
Option or SAR. The Company shall have no obligation to register with any federal or state securities commission or agency any
Common Stock issuable or issued under a Nonqualified Stock Option or SAR that has been transferred by a Participant under this
Section 15.7.

 

15.8       Use
of Proceeds. Proceeds from the sale of shares of Common Stock pursuant to Incentives granted under this Plan shall constitute
general funds of the Company.

 

15.9       Legend.
Each certificate representing shares of Restricted Stock issued to a Participant shall bear the following legend, or a similar
legend deemed by the Company to constitute an appropriate notice of the provisions hereof (any such certificate not having such
legend shall be surrendered upon demand by the Company and so endorsed):

 

On
the face of the certificate:

 

“Transfer
of this stock is restricted in accordance with conditions printed on the reverse of this certificate.”

 

On
the reverse:

 

“The
shares of stock evidenced by this certificate are subject to and transferable only in accordance with that certain Snap Interactive,
Inc. 2016 Long-Term Incentive Plan, a copy of which is on file at the principal office of the Company in New York, New York. No
transfer or pledge of the shares evidenced hereby may be made except in accordance with and subject to the provisions of said
Plan. By acceptance of this certificate, any holder, transferee or pledgee hereof agrees to be bound by all of the provisions
of said Plan.”

 

    	 	22	 

     

    

 

The
following legend shall be inserted on a certificate evidencing Common Stock issued under the Plan if the shares were not issued
in a transaction registered under the applicable federal and state securities laws:

 

“Shares
of stock represented by this certificate have been acquired by the holder for investment and not for resale, transfer or distribution,
have been issued pursuant to exemptions from the registration requirements of applicable state and federal securities laws, and
may not be offered for sale, sold or transferred other than pursuant to effective registration under such laws, or in transactions
otherwise in compliance with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which
the Company may rely upon an opinion of counsel satisfactory to the Company.”

 

15.10      Governing
Law. The Plan shall be governed by, construed, and enforced in accordance with the laws of the State of New York (excluding
any conflict of laws, rule or principle of New York law that might refer the governance, construction, or interpretation of this
Plan to the laws of another state). A Participant’s sole remedy for any Claim shall be against the Company, and no Participant
shall have any claim or right of any nature against any Subsidiary of the Company or any stockholder or existing or former director,
officer or Employee of the Company or any Subsidiary of the Company. The individuals and entities described above in this Section
15.10 (other than the Company) shall be third-party beneficiaries of this Plan for purposes of enforcing the terms of this
Section 15.10.

 

A
copy of this Plan shall be kept on file in the principal office of the Company in New York, New York.

 

***************

 

    	 	23	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be executed as of March 28, 2016, by its Chief Executive Officer pursuant
to prior action taken by the Board.

 

	 	SNAP INTERACTIVE, INC.
	 	 
	 	By:  	/s/ Alex Harrington
	 	 	Alex
Harrington, Chief Executive Officer

 

 

24Exhibit 4.1

 

NEITHER THIS WARRANT NOR THE SHARES OF COMMON STOCK
ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT
AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED.

 

NXT-ID, INC.,

a Delaware corporation

 

WARRANT TO PURCHASE

 

SHARES OF COMMON STOCK

 

(SUBJECT TO ADJUSTMENT)

 

	Warrant No: ___	May [_], 2016

 

This certifies that, for value received,
[__________], or its registered assigns (the “Holder”), shall be entitled to receive, subject to the
terms set forth below, following the termination of the IPA (as defined herein) (other than a termination pursuant to Section 9(r)(iii)
thereof) (the “Termination Date”) the number of shares (subject to adjustment as described herein) of
common stock (the “Common Stock”) of Nxt-ID, Inc., a Delaware corporation (the “Company”)
equal to (a) $600,000 divided by (b) the Per Share Price (as defined in the IPA) multiplied by (c) the Holder’s Pro Rata
Share (as defined in the IPA), with or without surrender hereof consistent with Section 1 of this Warrant at the principal office
of the Company, at 285 North Drive, Suite D, Melbourne, FL 32934 (“Principal Office”); provided,
however, that this Warrant shall be null and void immediately upon (i) the closing of the transactions contemplated by that
certain Interest Purchase Agreement (the “IPA”) by and among the Company, the Holder and the members
of the Holder, dated as of the date hereof, or (ii) the termination of the IPA pursuant to Section 9(r)(iii) thereof. The number
of shares of Common Stock issuable hereunder is subject to adjustment as provided in Section 4 below. Unless the
context otherwise requires, the term “Common Stock” shall include the common stock at the time receivable upon the
exercise of this Warrant. The term “Warrant,” as used herein, shall mean this Warrant and any other Warrants
delivered in respect therefor as provided herein. All capitalized terms used herein and not defined herein shall have the respective
meanings ascribed to such terms in the IPA.

 

1.            Exercise. Following
the Termination Date and until the Expiration Date (as defined herein), the Holder may exercise all or any portion of this Warrant
by written notice to the Company thereof and the Company shall issue the shares of Common Stock so exercised for by the Holder
as required hereby (each a “Warrant Share” and, collectively, the “Warrant Shares”),
and deliver or cause to be delivered to the Holder (or its assignees) by crediting the account of such Person’s prime broker
with The Depository Trust Company through its Deposit or Withdrawal at Custodian system if the Company is then a participant or
another established clearing corporation performing similar functions, if available, and otherwise by physical delivery of a certificate
or certificates for the number of Warrant Shares issuable upon such exercise, within three (3) Trading Days after such exercise
date.

 

    	 	1	 

     

    

 

2.            Shares Fully Paid; Payment
of Taxes. All shares of Common Stock issued upon the exercise of this Warrant shall be validly issued, fully paid, and non-assessable,
and the Company shall pay all taxes and other governmental charges (other than income taxes to the Holder) that may be imposed
in respect of the issue or delivery thereof.

 

3.            Transfer and Exchange;
Put Right.

 

A.            By its acceptance of this
Warrant, the Holder agrees that this Warrant has been acquired for investment purposes and not with a view to distribution or resale
and may not be pledged, hypothecated, sold, made subject to a security interest, or otherwise transferred without: (a) an effective
registration statement for such Warrant under the Securities Act of 1933, as amended (the “Act”), and
such applicable state securities laws; or (b) an opinion of counsel reasonably satisfactory to the Company that registration is
not required under the Act or under any applicable state securities laws.

 

B.            Upon compliance with applicable
federal and state securities laws as set forth in Section 3(A) above, on the books of the Company maintained for
such purpose at its Principal Office, the Holder may transfer this Warrant and all rights hereunder, in whole or in part, in person
or by duly authorized attorney, upon surrender of this Warrant together with a completed and executed assignment form in the form
attached hereto as Exhibit A and payment of any necessary transfer tax or other governmental charge imposed
upon such transfer. Upon any partial transfer, the Company will issue and deliver to the assignee a new Warrant with respect to
the shares of Common Stock for which it is exercisable that have been transferred, and the Company will deliver to the Holder a
new Warrant or Warrants with respect to the shares of Common Stock not so transferred. A Warrant may be transferred only by the
procedure set forth herein. No transfer shall be effective until such transfer is recorded on the books of the Company, provided
that the Company promptly records such transfers. Until such transfer on such books, the Company shall treat the registered Holder
hereof as the owner of the Warrant for all purposes.

 

C.            Until the Warrant Shares have
been registered under the Act, transfer of the Warrant Shares issued upon the exercise of this Warrant shall be restricted in the
same manner and to the same extent as the Warrant. Until such Warrant Shares have been registered under the Act or the Act otherwise
permits removal of this legend, the certificates representing such Warrant Shares shall bear substantially the following legend:

 

“THE SHARES OF COMMON STOCK REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE
STATE SECURITIES LAW AND MAY NOT BE TRANSFERRED UNTIL: (a) A REGISTRATION STATEMENT UNDER THE ACT OR SUCH APPLICABLE STATE SECURITIES
LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO; OR (b) IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, REGISTRATION
UNDER THE ACT OR SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER.”

 

    	 	2	 

     

    

 

D.            The Holder and the Company
agree to execute such other documents and instruments as counsel to the Company deems reasonably necessary to effect the compliance
of the issuance of this Warrant and any Warrant Shares issued upon exercise hereof with applicable federal and state securities
laws, including compliance with applicable exemptions from the registration requirements of such laws.

 

E.            The Company acknowledges that
the Holder has the right to require the Company to repurchase any or all of the Warrant Shares issued to Holder in accordance with
the terms of the IPA.

 

4.            Anti-Dilution Provisions.
The number and kind of securities issuable upon exercise of this Warrant shall be subject to adjustment from time to time upon
the happening of certain events as follows:

 

A.            Adjustment for Stock Splits
and Combinations. If the Company at any time or times on or after the date hereof (the “Original Issuance Date”)
effects a subdivision of the outstanding Common Stock or any other equity or equity equivalent securities payable in shares of
Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of
this Warrant), whether by stock split, dividend, recapitalization or otherwise, the number of Warrant Shares that are issuable
upon exercise of this Warrant immediately before that subdivision shall be proportionately increase. Conversely, if the Company
at any time or times on or after the Original Issuance Date combines the outstanding shares of Common Stock into a smaller number
of shares, the number of Warrant Shares that are issuable upon exercise of this Warrant immediately before that combination shall
be proportionately decreased. Any adjustment under this Section 4(A) shall become effective at the close of business on the
date that the subdivision or combination becomes effective.

 

B.            Adjustment for Reclassification,
Exchange, and Substitution. In the event that at any time or times on or after the Original Issuance Date the Common Stock
issuable upon the exercise of the Warrants is changed into the same or a different number of shares of any class or classes of
stock—whether by recapitalization, reclassification, or otherwise (other than a subdivision or combination of shares or stock
dividend or a reorganization, merger, consolidation or sale of assets, provided for elsewhere in this Section 4)—then
and in any such event, each Holder of Warrants shall have the right thereafter to exercise such Warrants to receive the kind and
amount of stock and other securities and property receivable upon such recapitalization, reclassification, or other change by holders
of the maximum number of shares of Common Stock for which such Warrants could have been exercised immediately prior to such recapitalization,
reclassification, or change, all subject to further adjustment as provided herein.

 

    	 	3	 

     

    

 

C.            Reorganizations, Mergers,
Consolidations, or Sales of Assets. If at any time or times on or after the Original Issuance Date there is a capital reorganization
of the Common Stock (other than a subdivision, combination, reclassification, or exchange of shares provided for elsewhere in this
Section 4), or a merger or consolidation of the Company with or into another corporation, or the sale of all or substantially
all of the Company’s properties and assets to any other person, then, as a part of such reorganization, merger, consolidation,
or sale, provisions shall be made so that the Holders of the Warrants shall thereafter be entitled to receive upon exercise of
the Warrants the number of shares of stock or other securities or property to which a holder of the number of shares of Common
Stock deliverable upon exercise would have been entitled on such capital reorganization, merger, consolidation, or sale. In any
such case, appropriate adjustment shall be made in the application of the provisions of this Section 4 with respect to the
rights of the Holders of the Warrants after the reorganization, merger, consolidation, or sale to the end that the provisions of
this Section 4 (including adjustment of the number of shares to be received upon exercise of the Warrants) shall be applicable
after that event and be as nearly equivalent as may be practicable.

 

D.            Number of Warrant Shares.
In the event of any other corporate action or transaction having substantially the same effect as any of the actions or transactions
described in any of Sections 4(A), (B) or (C), but which is not specifically described
in any of such Sections, then, simultaneously with such action or transaction, the number of Warrant Shares that will be issuable
upon exercise of this Warrant shall be increased or decreased proportionately, or such other adjustments shall be made to the capital
stock or other securities or property to which a holder of the number of shares of Common Stock deliverable upon exercise of this
Warrant would have been entitled on such action or transaction, as applicable, as shall be equitable under the circumstances.

 

E.            The Company will not, by amendment
of its articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action
as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against dilution or other impairment.

 

5.            Loss or Mutilation.
Upon receipt by the Company of evidence satisfactory to it (in the exercise of reasonable discretion) of the ownership of and the
loss, theft, destruction, or mutilation of any Warrant and (in the case of loss, theft, or destruction) of indemnity satisfactory
to it (in the exercise of reasonable discretion) and (in the case of mutilation) upon surrender and cancellation thereof, the Company
will execute and deliver in lieu thereof a new Warrant of like tenor.

 

6.            Reservation of Common Stock.
The Company shall at all times reserve and keep available for issue (free from preemptive rights) upon the exercise of Warrants
such number of its authorized but unissued shares of Common Stock as will be sufficient to permit the exercise in full of all outstanding
Warrants. All of the shares of Common Stock issuable upon the exercise of the rights represented by this Warrant will, upon issuance
in accordance with the terms of this Warrant, be fully paid and non-assessable and free from all preemptive rights, rights of first
refusal or first offer, taxes, liens (other than liens created by the Holder), and charges of whatever nature with respect to the
issuance thereof. The Company further covenants that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise
of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that
such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements
of the trading market upon which the Common Stock may be listed. 

 

    	 	4	 

     

    

 

7.            No Rights as Stockholder
Conferred by Warrants. Other than as provided in Section 4, this Warrant shall not entitle the Holder hereof
to any of the rights, either at law or in equity, of a stockholder of the Company.

 

8.            Notices. All notices
and other communications from the Company to the Holder of this Warrant shall be mailed by first class registered or certified
mail, postage prepaid, and/or by a nationally recognized overnight courier service to the address the Holder furnishes to the Company
in writing.

 

9.            Amendments, Modifications,
and Waivers. No terms of this Warrant may be amended, modified, or waived except by the express written consent of the Company
and the Holder.

 

10.           Endorsement of Warrants.
When presented or surrendered for exchange, transfer, or registration, the Warrant shall be accompanied (if so required by the
Company) by an assignment in the form attached hereto as Exhibit A or such other written instrument of transfer in
form satisfactory to the Company duly executed by the registered Holder or by his duly authorized attorney.

 

11.           Agreement of Warrant Holders.
The Holder—and, to the extent that portions of this Warrant are assigned and there is more than one Holders of Warrants exercisable
for the Warrant Shares, every Holder of a Warrant—by accepting the same, consents and agrees with the Company and with all
other Warrant Holders that: (a) the Warrants are transferable only as permitted by Section 3 above; (b) the Warrants
are transferable only on the registry books of the Company as herein provided; and (c) the Company may deem and treat the person
in whose name the Warrant certificate is registered as the absolute owner thereof and of the Warrants evidenced thereby for all
purposes whatsoever, and the Company shall not be affected by any notice to the contrary.

 

12.           Payment of Taxes.
The Company will pay all stamp, transfer, and other similar taxes payable in connection with the original issuance of this Warrant
and the shares of Common Stock issuable upon exercise thereof, provided, however, that the Company shall not be required
to (a) pay any such tax which may be payable in respect of any transfer involving the transfer and delivery of this Warrant or
the issuance or delivery of certificates for shares of Common Stock issuable upon exercise thereof in a name other than that of
the registered Holder of this Warrant; or (b) issue or deliver any certificate for shares of Common Stock upon the exercise of
this Warrant until any such tax required to be paid under clause (a) shall have been paid, all such tax being payable by the Holder
of this Warrant at the time of surrender.

 

13.           Fractional Interest.
The Company shall not be required to issue fractional shares of Common Stock on the exercise of this Warrant. If more than one
Warrant shall be presented for exercise at the same time by the Holder, the number of full shares of Common Stock which shall be
issuable upon such exercise shall be computed on the basis of the aggregate number of shares of Common Stock acquirable on exercise
of the Warrants so presented. If any fraction of a share of Common Stock would be issuable on the exercise of any Warrant (or specified
portion thereof), then the number of shares issuable shall be rounded to the nearest whole number of shares. The Holder by his
acceptance of this Warrant expressly waives any and all rights to receive any fraction of a share of Common Stock or a stock certificate
representing a fraction of a share of Common Stock. As to any fraction of a share which the Holder would otherwise be entitled
to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction
in an amount equal to such fraction multiplied by the Price Per Share or round up to the next whole share.

 

    	 	5	 

     

    

 

14.           Entire Agreement.
This Warrant constitutes the full and entire understanding and agreement among the parties with regard to the subject matter hereof,
and no party shall be liable or bound to any other party in any manner by any representations, warranties, covenants, or agreements
except as specifically set forth herein.

 

15.           Successors and Assigns.
All covenants and provisions of this Warrant by or for the benefit of the Company or the Holder of this Warrant shall bind and
inure to the benefit of their respective successors, permitted assigns, heirs, and personal representatives. The provisions of
this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the
Holder or holder of Warrant Shares.

 

16.           Termination. This
Warrant shall terminate at 11:59 p.m., Eastern Time, on the fifth (5th) anniversary of the Termination Date (the “Expiration
Date”).

 

17.           Headings. The headings
in this Warrant are for purposes of convenience in reference only and shall not be deemed to constitute a part hereof.

 

18.           Governing Law, Etc.
This Warrant shall be governed by and construed exclusively in accordance with the internal laws of the State of Delaware without
regard to the conflicts of laws principles thereof.

 

19.           WAIVER OF JURY TRIAL.
THE COMPANY AND EACH HOLDER HEREOF HEREBY UNCONDITIONALLY WAIVE ANY RIGHT TO A JURY TRIAL WITH RESPECT TO AND IN ANY ACTION, PROCEEDING,
CLAIM, COUNTERCLAIM, DEMAND OR OTHER MATTER WHATSOEVER ARISING OUT OF THIS WARRANT OR ANY AGREEMENT, DOCUMENT OR INSTRUMENT CONTEMPLATED
BY THIS WARRANT.

 

20.            Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

[Remainder of page intentionally
left blank.]

 

    	 	6	 

     

    

 

WARRANT SIGNATURE PAGE

 

	Dated: __________, 2016	NXT-ID, INC.
	 	 	 
	 	By: 	
	 	 	Name:
	 	 	Title:

 

    	 	7	 

     

    

 

EXHIBIT A

 

FORM OF ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned
registered owner of this Warrant hereby sells, assigns, and transfers unto the Assignee named below all of the rights of the undersigned
under the within Warrant, with respect to the number of shares of Common Stock set forth below:

 

	Name of Assignee	 	Address	 	Number of Shares
	 	 	 	 	 

 

and does hereby irrevocably constitute and appoint
__________________________ Attorney to make such transfer on the books of Nxt-ID, Inc., maintained for this purpose, with full
power of substitution in the premises.

 

Dated: ______________

 

	 	
	 	(Signature)
	 	 
	 	
	 	(Witness)

 

The undersigned Assignee of the
Warrant hereby makes to Nxt-ID, Inc., as of the date hereof, with respect to the Assignee, all of the representations and warranties
made by the Holder, and the undersigned Assignee agrees to be bound by all the terms and conditions of the Warrant.

 

Dated:  ______________

 

	 	
	 	(Signature)

 

 

8

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