Document:

Exhibit 10.1

 

FOURTH FORBEARANCE AGREEMENT AND FIFTH
AMENDMENT TO CREDIT AGREEMENT

 

This Fourth Forbearance
Agreement and Fifth Amendment to Credit Agreement (this “Agreement”) is entered into as of the 31st day
of October, 2016, by and between BIOANALYTICAL SYSTEMS, INC., an Indiana corporation (the “Company”)
and THE

HUNTINGTON NATIONAL BANK, a national
banking association (the “Bank”).

 

RECITALS:

 

A.       Pursuant
to the terms and conditions of a certain Credit Agreement dated as of May 14, 2014 by and between the Company and the Bank, as
amended by a First Amendment to Credit Agreement dated as of May 14, 2015, such Credit Agreement, as so amended, hereinafter (the
“Loan Agreement”), the Bank agreed to make to the Company (i) loans (collectively, the “Revolving
Loans”) up to the maximum aggregate sum of $2,000,000 under a revolving line of credit and (ii) a term loan in the
principal amount of $5,500,000 (the “Term Loan,” and together with the Revolving Loans, collectively
the “Loans”).

 

B.       To
evidence the Revolving Loans, on or about May 14, 2014, the Company executed and delivered to the Bank a certain Promissory Note
(Revolving Loan) in the original principal sum of $2,000,000.00 (the “Revolving Note”).

 

C.       To
evidence the Term Loans, on or about May 14, 2014, the Company executed and delivered to the Bank a certain Promissory Note (Term
Loan) in the original principal sum of $5,500,000.00 (the “Term Note”, and together with the Revolving
Note hereinafter sometimes collectively the “Notes”).

 

D.       In
connection with the Term Loan, on May 14, 2014, the Company and the Bank entered into a certain ISDA 2002 Master Agreement and
related schedules, and thereafter, on May 16, 2014, the Company and the Bank entered into a Confirmation pursuant thereto (all
of the foregoing documents are hereinafter collectively referred to as the “Swap Agreement”).

 

E.       To
secure all of its Obligations (as that term is defined in the Loan Agreement) to the Bank, the Company executed and delivered to
the Bank a certain Security Agreement dated as of May 14, 2014 (the “Security Agreement”), pursuant to
which the Company granted the Bank a security interest in substantially all of the Company’s personal property assets, whether
then owned or thereafter acquired, including without limitation accounts, chattel paper, deposit accounts, documents, goods, equipment,
general intangibles and inventory, and all proceeds of, products of and supporting obligations of the foregoing.

 

F.       The
Bank perfected the security interests granted to it pursuant to the Security Agreement by filing a UCC-1 financing statement with
the Indiana Secretary of State.

 

G.       To
further secure all of its Obligations (as that term is defined in the Loan Agreement) to the Bank, the Company executed and delivered
to the Bank a certain Mortgage, Security Agreement, Assignment of Rents and Fixture Filing dated as of May 14, 2014 (the “West
Lafayette Mortgage”), pursuant to which the Company granted the Bank a mortgage, security interest and assignment
of rents with respect to certain real property located in West Lafayette, Indiana (the “West Lafayette Property”).

 

     

     

    

 

H.       In
consideration of the Bank entering into the Loan Agreement, BAS EVANSVILLE, INC., an Indiana corporation (the “Guarantor”),
agreed, pursuant to a certain Guaranty Agreement dated as of May 14, 2014 (the “Guaranty”), to unconditionally
guarantee the repayment of all obligations owing from the Company to the Bank, including the Company’s obligations under
the Loan Agreement;

 

I.       To
secure the Guarantor’s obligations to the Bank, including its obligations under the Guaranty, the Guarantor executed and
delivered to the Bank a certain Mortgage, Security Agreement, Assignment of Rents and Fixture Filing dated as of May 14, 2014 (the
“Mt. Vernon Mortgage”), pursuant to which the Company granted the Bank a mortgage, security interest
and assignment of rents with respect to certain real property located in Mt. Vernon, Indiana (the “Mt. Vernon Property”).

 

J.       As
of April 27, 2016, the Company and the Bank entered into that certain Forbearance Agreement and Second Amendment to Credit Agreement
(the “First Forbearance Agreement”), whereby the Bank agreed, on the terms set forth therein, to forbear
from exercising its rights with regard to Designated Defaults (as defined herein) until June 30, 2016 and to amend the Loan Agreement
to provide for a June 30, 2016 maturity for the Loans.

 

K.       Pursuant
to the terms of the First Forbearance Agreement, the Company executed and delivered to the Bank a Short Form Copyright Security
Agreement, a Short Form Patent Security Agreement and a Short Form Trademark Security Agreement, each dated April 27, 2016 (collectively,
the “IP Security Agreements”).

 

L.       The
Bank perfected the security interests granted to it pursuant to the IP Security Agreements through its filed UCC-1 financing statement
with the Indiana Secretary of State and by filing the applicable IP Security Agreement with the United States Patent and Trademark
Office and the United States Copyright Office.

 

M.       As
of July 1, 2016, the Company and the Bank entered into that certain Second Forbearance Agreement and Third Amendment to Credit
Agreement (the “Second Forbearance Agreement”), whereby the Bank agreed, on the terms set forth therein,
to forbear from exercising its rights with regard to the Designated Defaults (as defined below herein) until September 30, 2016
and to amend the Loan Agreement to provide for a September 30, 2016 maturity for the Loans.

 

N.       As
of September 30, 2016, the Company and the Bank entered into that certain Third Forbearance Agreement and Fourth Amendment to Credit
Agreement (the “Third Forbearance Agreement”), whereby the Bank agreed, on the terms set forth therein,
to forbear from exercising its rights with regard to the Designated Defaults (as defined below herein) until October 31, 2016 and
to amend the Loan Agreement to provide for an October 31, 2016 maturity for the Loans.

 

     

     

    

 

O.       The
Bank continues to be the holder of the Notes and the Loan Agreement (such documents, as amended, together with the Security Agreement,
the West Lafayette Mortgage, the Guaranty, the Mt. Vernon Mortgage, the First Forbearance Agreement, the IP Security Agreements,
and all other agreements, documents and instruments related thereto or at any time evidencing or securing the Loans, are hereinafter
collectively referred to as the “Loan Documents”).

 

P.       As
of October 25, 2016, the Company owes to the Bank the principal sum of $1,824,422.75 on the Revolving Loans and the principal sum
of $3,601,196.00 on the Term Loan, together with accrued interest, fees, expenses, reimbursement obligations and other charges
and obligations pursuant to the Loan Documents, including without limitation attorneys’ fees (collectively the “Indebtedness”).

 

Q.       In
the First Forbearance Agreement, the Company acknowledged the existence of Events of Default under the terms of the Loan Documents
resulting from (i) the Company’s failure to comply with Section 5(g)(i) of the Loan Agreement with regard to its Fixed Charge
Coverage Ratio for the Test Period ending December 31, 2015, and (ii) the Company’s failure to comply with Section 5(g)(ii)
of the Loan Agreement with regard to its Maximum Total Leverage Ratio for the Test Period ending December 31, 2015 (collectively,
the “Designated Defaults”).

 

R.       By
reason of the continued existence of the Designated Defaults, the expiration of the Forbearance Period provided in the Third Forbearance
Agreement and the maturity of the Loans, as of October 31, 2016, the Bank has no obligation to make additional advances under the
Loan Agreement and the Bank has full legal right to exercise its rights and remedies under the Loan Documents and under applicable
law. Such remedies include, but are not limited to, the right to repossession and sale, foreclosure, or use, as the case may be,
of the Collateral.

 

S.       The
Company has requested that the Bank agree to continue to forbear for a specific period of time from exercising its rights and remedies
under the Loan Documents and under applicable law pursuant to the terms of this Agreement and to extend the maturity date of the
Loans. The Bank is willing to do so, but only on the terms and conditions set forth herein.

 

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

 

1.       Defined
Terms. All capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Loan Documents.

 

     

     

    

 

2.       Forbearance.
Subject to the provisions of this Agreement, absent a breach or default under this Agreement (a “Default”),
and except as otherwise provided herein, the Bank shall refrain from taking any action to foreclose or recover the Collateral or
otherwise initiate collection proceedings against the Company or the Collateral from the effective date of this Agreement through
and including January 31, 2017 (the “Forbearance Period”) on account of the Designated Defaults or any
other failure of the Company to comply with Sections 5(g)(i) or 5(g)(ii) of the Loan Agreement. The Company acknowledges and agrees
that, notwithstanding the foregoing and except as modified by this Agreement, (a) the Bank reserves the right to enforce each and
every term of this Agreement and the Loan Documents; (b) the Bank is under no duty or obligation of any kind or any nature to grant
the Company any additional period of forbearance beyond the Forbearance Period; (c) the Bank’s actions in entering into
this Agreement shall not be construed as a waiver or relinquishment of, or estoppel to assert, any of the Bank’s rights under
the Loan Documents or under applicable law; and (d) the Bank’s actions in entering into this Agreement are without prejudice
to the Bank’s right to pursue any and all remedies available to it upon expiration of the Forbearance Period or immediately
upon the occurrence of a Default. Notwithstanding any other provision of this Agreement or any other Loan Document to the contrary,
the Designated Defaults shall continue to constitute an Event of Default under the Loan Agreement for purposes of Section 5(c)
(allowing for unlimited audits).

 

3.       Revolving
Loans. The Company acknowledges that, as a result of the Designated Defaults, the Bank is no longer obligated to make Revolving
Loans under the Loan Agreement. Notwithstanding the foregoing, during the Forbearance Period and so long as no Default has occurred,
the Bank hereby agrees to continue to make Revolving Loans under the Loan Agreement, subject to the terms of the Loan Agreement
as modified by this Agreement.

 

4.       Amendment
of Loan Agreement.

 

(a)       Revolving
Loan Maturity. The definition of “Revolving Loan Maturity Date” in Section 1 of the Loan Agreement is hereby amended
and restated in its entirety to now read:

 

“Revolving
Loan Maturity Date” means January 31, 2017.

 

(b)       Term
Loan Maturity. The Loan Agreement is hereby amended such that each reference to “October 31, 2016” contained in
Section 2(b)(ii), is deleted and replaced with “January 31, 2017”.

 

5.       Amendment
of Other Loan Documents. All other Loan Documents (including but not limited to the Notes), are hereby amended to the extent
necessary (i) to reflect a maturity date for the Revolving Loan and Revolving Note of January 31, 2017, and (ii) to reflect a maturity
date for the Term Loan and Term Note of January 31, 2017.

 

6.       [Reserved]

 

7.       Replacement
Financing. The Company shall take commercially reasonable efforts to obtain funds sufficient to repay the Indebtedness
in full upon the expiration of the Forbearance Period. On or before the 30th day of each month, the Company shall provide or cause
to be provided to the Bank a report on its efforts and progress in obtaining such funds, which report must be in form an substance
satisfactory to the Bank in is sole discretion. The Company shall provide or cause to be provided to the Bank copies of all loan
proposals, term sheets or offers within five days of the receipt by the Company or its investment bank. On or before November 15,
2016, the Company shall provide or cause to be provided to the Bank a letter signed by a controlling majority of the Board of Directors
of the Company affirming that the Board of Directors has directed the management of the Company to seek out alternatives that will
enable the Company to repay the Indebtedness in full upon the expiration of the Forbearance Period, which letter must be in substance
and detail satisfactory to the Bank in all respects.

 

     

     

    

 

8.       Additional
Reporting. In addition to the reporting requirements contained in the Loan Documents, beginning on November 28, 2016 and
continuing throughout the Forbearance Period, the Company shall provide or cause to be provided to the Bank in form and level of
detail reasonably satisfactory to the Bank: (i) on or before Monday of each week, an updated 13-week cash flow forecast for the
Company, setting forth a projected Net Cash Flow and including an actual versus projected results (including an actual Net Cash
Flow) for the preceding week (a “Cash Flow Forecast”); (ii) on or before the 15th day of each
month, financial statements and reports for the Company on a monthly and year-to-date basis, including an income statement, balance
sheet and statement of cash flows, together with an accounts receivable aging report and an accounts payable aging report; and
(iii) such other financial information as may be reasonably requested by the Bank. As used herein, “Net Cash Flow”
means, with reference to any period, the Company’s cash capital contributions and other receipts of cash (including but not
limited to cash received from operations) for such period minus the Company’s actual cash uses for such period.

 

9.       Minimum
Cash Flow. Beginning with the Cash Flow Forecast to be delivered on or before December 12, 2016, the Company shall maintain
a cumulative two-week Net Cash Flow for the two weeks ending immediately prior to the second and fourth Cash Flow Forecasts delivered
each month of at least 85% of the last projected Net Cash Flow for such weeks.

 

10.       Loan
Documents in Effect. All terms and conditions of the Loan Documents, and the liens and security interests granted thereby,
shall remain in full force and effect after the consummation of the transactions contemplated herein, except as modified herein.

 

     

     

    

 

11.       Confirmation
of Security Interests and Liens. The Company hereby acknowledges, reaffirms, grants, pledges and assigns to the Bank, to
secure the prompt and full payment and complete performance of all Obligations, a security interest in the Company’s right,
title and interest in all present and future (a) accounts, accounts receivable, contract rights, chattel paper, electronic chattel
paper, payment intangibles, healthcare receivables, instruments, promissory notes, supporting obligations and other forms of obligations
and property securing rights to payment, negotiable and non-negotiable documents, notes, drafts, acceptances, amounts owing from
the provision of services or the license of Intellectual Property, and other forms of obligations, all books, records, ledger cards,
computer programs, and other documents or property, including without limitation such items which are evidencing or relating to
the accounts and inventory; (b) goods and inventory, wherever located, goods held for sale or lease, furnished under any contract
of service or held as raw materials, work in process or supplies, and all materials used or consumed in the business of the Company,
and shall include all right, title and interest of the Company in any property, the sale or other disposition of which has given
rise to Accounts and which has been returned to or repossessed or stopped in transit by the Company; (c) (i) equipment, including
without limitation machinery, manufacturing, distribution, selling, data processing and office equipment, assembly systems, tools,
molds, dies, fixtures, appliances, furniture, furnishings, vehicles, vessels, aircraft, aircraft engines, and trade fixtures, (ii)
other tangible personal property, and (iii) any and all accessions, parts and appurtenances attached to any of the foregoing or
used in connection therewith, and any substitutions therefor and replacements, products and proceeds thereof; (d) trade names,
trademarks, trade secrets, service marks, data bases, software and software systems, including the source and object codes, information
systems, discs, tapes, customer lists, telephone numbers, credit memoranda, goodwill, patents, patent applications, patents pending,
copyrights, royalties, literary rights, licenses and franchises; (e) general intangibles, income and other tax refunds, proceeds
of insurance, eminent domain and condemnation awards, choses in action, commercial tort claims, preference recoveries and all claims
in respect of transfers of any kind, all transfers by states and governmental units of states, letter of credit rights and proceeds
of letters of credit, franchise rights, installment contracts, and any and all policies or certificates of insurance, goods, cash
and property, which now or hereafter are at any time in the possession or control of the Bank or in transit by mail or carrier
to or from the Bank, or in the possession of any third party acting on the Bank’s behalf, without regard to whether the Bank
received the same in pledge for safekeeping, as agent for collection or transmission or otherwise, or whether the Bank has conditionally
released the same; (f) investment property, including without limitation securities, whether certificated or uncertificated, securities
entitlements, securities accounts, commodities contracts and commodities accounts; (g) deposit accounts, whether general, special,
time, demand, provisional, or final, all cash or monies wherever located, any and all deposits or other sums at any time due to
the Company; and (h) cash and non-cash proceeds, substitutions, replacements, additions and accessions to any Collateral, all insurance
proceeds, all documents, negotiable documents, documents of title, warehouse receipts, storage receipts, dock receipts, dock warrants,
express bills, freight bills, airbills, bills of lading and other documents relating to any Collateral, and all products thereof.
The Company further represents, warrants and agrees that as of the date hereof, there are no claims, set-offs or defenses to the
Obligations or the Bank’s exercise of any rights or remedies available to it as a creditor in realizing upon the Collateral
or the Loan Documents, or under applicable law. In addition, the Company has not assigned any claim, set-off, or defense to any
person, individual, or entity.

 

12.       Swap
Agreement. Notwithstanding anything herein to the contrary, the Borrower acknowledges and agrees that the Designated Defaults
are and shall continue to constitute Events of Default under the Swap Agreement such that the Bank may immediately, upon the earlier
of (a) the end of the Forbearance Period or (b) the occurrence of a Default, designate an Early Termination Date (as defined in
the Swap Agreement) and that, upon the occurrence of such Early Termination Date, the Borrower will be obligated to pay the Early
Termination Amount (as defined in the Swap Agreement) and all other amounts owing under the Swap Agreement as a result of such
Early Termination Date.

 

13.       Consultant.
The Company shall continue to engage the services of the Consultant (as such term is defined in the Second Forbearance Agreement)
reasonably satisfactory to the Bank for the purposes of (a) evaluating all aspects of operations; (b) determining the viability
of future cash flows; (c) determining marketability of the Company or any of its assets; and (d) evaluating options sufficient
to repay the Loans in full. The Company shall provide the Consultant with full access to its facilities, books and records. The
Company shall cause the Consultant to provide to the Bank such information regarding its efforts as the Bank may reasonably request.

 

     

     

    

 

14.       Use
of Collateral. During the Forbearance Period, the Company shall be permitted to use the Collateral in the conduct of their
business, as long as such use is not inconsistent with the Loan Documents and this Agreement.

 

15.       Foreclosure
of Collateral. Upon the earlier of (a) the end of the Forbearance Period or (b) the occurrence of a Default, the Bank shall
have the right to foreclose, sell, lease or otherwise dispose of the Collateral in accordance with the terms of the Loan Documents,
this Agreement, and applicable law. The Company hereby consents and agrees to such foreclosure, sale, lease or other disposition
of the Collateral by the Bank, its agents, or its designees. The Company hereby waives, renounces and forever relinquishes all
right to notice prior to disposition of the Collateral required by the Loan Documents or applicable law.

 

16.       Conditions
Precedent to Effectiveness of Agreement. The Company understands that this Agreement shall not be effective, and the Bank
shall have no obligation to forbear from exercising any rights or remedies, unless and until each of the following conditions precedent
has been satisfied not later than the respective date set forth below, or waived by the Bank (in its sole discretion), for whose
sole benefit such conditions exist, with the Bank’s determination as to whether they have been timely satisfied being conclusive
absent manifest error:

 

(a)       On
or before October 31, 2016, the Company shall have executed and delivered to the Bank this Agreement;

 

(b)       On
or before October 31, 2016, the Company shall have remitted to the Bank $2,579.46 in reimbursement of the Bank’s legal fees
and expenses;

 

(c)       On
or before October 31, 2016, the Company shall have remitted to the Bank a loan forbearance fee in the amount of $13,950 (the “Forbearance
Fee”), which is fully earned and nonrefundable upon execution of this Agreement;

 

(d)       On
or before October 31, 2016, the Guarantor shall have executed and delivered to the Bank the attached Reaffirmation and Consent
of Guarantor;

 

17.       Representations
and Warranties. To induce the Bank to enter into this Agreement, the Company represents and warrants to the Bank as follows:

 

(a)       Recitals.
The Recitals in this Agreement are true and correct in all respects;

 

(b)       Organization.
The Company is a corporation duly organized, validly existing, and in good standing under the laws of the State of Indiana;

 

     

     

    

 

(c)       Authority.
The Company has full corporate power and authority to execute, deliver, and perform this Agreement and has taken all corporate
or limited liability company action required by law, its articles of incorporation or organization, code of regulations or operating
agreement, and any other governing documents to authorize the execution and delivery of this Agreement. This Agreement is the legal,
valid, and binding obligation of the Company enforceable against it in accordance with its terms;

 

(d)       Consents
and Approvals. No consent or approval of any party is required in connection with the execution and delivery of this Agreement
by the Company, and the execution and delivery of this Agreement does not (a) contravene or result in a breach or default under
the Company’s articles of incorporation or organization, code of regulations or operating agreement, other governing documents,
or any other agreement or instrument to which the Company is a party or by which any of its properties are bound, or (b) violate
any law, rule, regulation, order, writ, judgment, injunction, decree, determination, or award applicable to the Company; and

 

(e)       Continuing
Representations. Except in respect of the Designated Defaults, all representations and warranties contained in the Loan Documents
are true and correct as of the date of this Agreement. The Loan Documents represent unconditional, absolute, valid and enforceable
obligations against the Company. The Company does not have a right of setoff or recoupment, counterclaim, claims or defenses against
the Bank or any other person or entity that would or might affect the enforceability of any provisions of any of the Loan Documents
or the collectability of sums advanced by the Bank in connection with the Indebtedness. The Company understands and acknowledges
that the Bank is entering into this Agreement in reliance upon, and in partial consideration for, these acknowledgments and representations,
and agrees that such reliance is reasonable and appropriate.

 

18.       Other
Covenants. Unless the Bank otherwise consents in writing, during the Forbearance Period, the Company will do all of the
following:

 

(a)       Comply
with all requirements of the Loan Documents to the extent not inconsistent with this Agreement;

 

(b)       Ensure
that the Bank is fully informed at all times of all material developments or events relating to the operation of the Company’s
businesses, including changes in key personnel, or the manner of operating the businesses; and

 

(c)       Take
any and all reasonable actions of any kind or nature whatsoever, either directly or indirectly, that are necessary to prevent the
Bank from suffering a loss with respect to the Indebtedness, the Collateral or the Loan Documents or of any rights or remedies
of the Bank with respect to the Indebtedness, the Collateral, the Loan Documents or this Agreement in the event of a Default by
the Company under this Agreement or any of the Loan Documents (or the ability to exercise any such rights or remedies).

 

     

     

    

 

19.       Default.
A Default shall exist under this Agreement if any one or more of the following events shall have occurred:

 

(a)       Except
with respect to the Designated Defaults or any other failure of the Company to comply with Sections 5(g)(i) and 5(g)(ii) of the
Loan Agreement, any breach or default in or failure to perform or observe any term, condition, or covenant set forth in, or any
Event of Default under any of the Loan Documents, or any other document previously, now, or hereafter executed and delivered by
the Company to the Bank shall occur after the date hereof, including but not limited to any failure of the Company to pay when
due any principal or interest owing under the Loan Documents or any default in the performance of any obligation under Sections
5 or 6 of the Loan Agreement; or

 

(b)       Any
breach or default in performance by the Company of any of the agreements, terms, conditions, covenants, warranties or representations
set forth in this Agreement;

 

(c)       Any
representation, warranty, acknowledgement, or agreement of the Company in this Agreement was false or misleading in any respect
when made;

 

(d)       (i)
The Company shall commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic
or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, readjustment,
winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of
a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its assets, or make a general
assignment for the benefit of its creditors; or (ii) there shall be commenced against the Company any case, proceeding or other
action of a nature referred to in clause (i) above that results in the entry of an order for relief or any such adjudication or
appointment; or (iii) there shall be commenced against the Company any case, proceeding or other action seeking issuance of a writ
of attachment, execution, distraint or similar process against all or any substantial part of its assets, which results in the
entry of an order for any such relief; or (iv) the Company shall take any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the acts set forth in clauses (i), (ii) or (iii) above; and

 

(e)       The
Bank, in its sole, good faith discretion, determines that a material adverse change has occurred after the date hereof in the financial
condition, operations or business of the Company, or in the value of the Collateral or the Bank’s interest in the Collateral.

 

     

     

    

 

20.       Remedies
Upon a Default. Immediately upon the occurrence of a Default, and notwithstanding anything to the contrary set forth herein
or in any of the Loan Documents, (a) the Bank shall not be obligated to make any disbursements or advances to the Company, including
any Revolving Loans, (b) the Bank shall have the right to accelerate the maturity of the Loans, (c) the Bank shall have the right
to charge interest on any and all Obligations at a rate equal to five hundred (500) basis points above the non-default interest
rate that would otherwise be in effect, regardless of whether such Obligation is accelerated or otherwise past due, and (d) the
Bank shall have the default rights and remedies set forth in the Loan Documents and in any other document previously, now or hereafter
executed and delivered to the Bank by the Company, the rights and remedies contained in this Agreement, and all rights and remedies
existing under applicable law. All rights and remedies shall be cumulative and not exclusive, and the Bank shall have the right
to exercise any and all other rights and remedies that may be available. Any action by the Bank against any property or party shall
not serve to release or discharge any other security, property, or person in connection with this transaction.

 

21.       Indemnification.
In addition to any other obligation of indemnification, the Company hereby assumes responsibility and liability for, and hereby
holds harmless and indemnifies the Bank from and against, any and all, by way of example but without limitation, liabilities, demands,
obligations, injuries, costs, damages (direct, indirect, or consequential), awards, charges, expenses, payments of money and attorneys’
fees, incurred or suffered, directly or indirectly, by the Bank and/or asserted against the Bank, by any person or entity whatsoever,
including the Company arising out of this Agreement, or any document executed in connection herewith, or the relationship between
or among the parties hereto, or the exercise of any right or remedy, including the realization, disposition or sale of the Collateral,
or any portion thereof, or the exercise of any right in connection therewith, for which the Bank may be liable, for any reason
whatsoever except for the Bank’s own acts of gross negligence or willful misconduct. Any such obligation of indemnification
shall be considered part of the Indebtedness, as that term is defined in this Agreement.

 

22.       Waiver
of Suretyship Defenses. The Company hereby waives the defenses of impairment of collateral for the obligations currently
evidenced by the Notes, waives the defenses of impairment of a person against whom the Bank has any right of recourse, and waives
any defenses of any accommodation maker, and consents that without discharging the Company, the time for payment and any other
provision of this Agreement or the Loan Documents may be extended or modified an unlimited number of times before or after maturity
without notice to it.

 

23.       Consent
to Relief from Automatic Stay. The Company agrees that if it shall (a) file with any bankruptcy court of competent jurisdiction
or be the subject of any petition under Title 11 of the United States Code, as amended, (b) be the subject of any order for relief
issued under such Title 11 of the United States Code, as amended, (c) file or be the subject of any petition seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future federal or state
act or law relating to bankruptcy, insolvency or other relief for debtors, (d) seek consent to or acquiesce in the appointment
of any trustee, receiver, conservator or liquidator, (e) be the subject of any order, judgment or decree entered by any court of
competent jurisdiction approving a petition filed against it for any reorganization, arrangement, composition, readjustment, liquidation,
disillusionment or similar relief under any present or future federal or state act or law relating to bankruptcy and insolvency,
or relief for debtors, the Bank shall thereupon be entitled to relief from any automatic stay imposed by Section 362 of Title 11
of the United States Code, as amended, or from any other stay or suspension of remedies imposed in any other manner with respect
to the exercise of the rights and remedies otherwise available to the Bank under the terms of this Agreement and the Loan Documents,
and the Company shall consent to any such relief sought by the Bank. The Company agrees that upon the occurrence of a Default,
the Bank shall be entitled to appointment of a receiver for the Collateral on an ex parte basis, without notice to the Company,
and without regard to the value of the Collateral.

 

     

     

    

 

24.       Effect
and Construction of Agreement. Except as expressly provided herein, the Loan Documents shall remain in full force and effect
in accordance with their respective terms, and this Agreement shall not be construed to (a) impair the validity, perfection or
priority of any lien or security interest securing the Indebtedness, (b) waive or impair any rights, powers or remedies of the
Bank under the Loan Documents upon termination of the Forbearance Period, (c) constitute an agreement by the Bank or require the
Bank to extend the Forbearance Period, grant additional forbearance periods or extend the time for payment of any of the Indebtedness,
or (d) make any loans or other extensions of credit to the Company after termination of the Forbearance Period. In the event of
any inconsistency between the terms of this Agreement and any of the Loan Documents, this Agreement shall govern. The Company acknowledges
that it has consulted with counsel and with such other experts and advisors as it has deemed necessary in connection with the negotiation,
execution, and delivery of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring
that it be construed against the party causing this Agreement or any part hereof to be drafted.

 

25.       Notice.
All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail as follows:

 

 

		If to the Bank:	The Huntington National Bank

2361
Morse Road, NC3W33

Columbus,
OH 43229

Attn:
Douglas Howard, Vice President

 

		With a copy to:	Porter, Wright, Morris & Arthur LLP

41
South High Street

Columbus,
Ohio 43215

Attn:
James P. Botti, Esq.

 

		If to the Company:	Bioanalytical Systems, Inc.

2701
Kent Avenue

West
Lafayette, Indiana 47906

Attention:
Jacqueline M. Lemke, President

 

		With a copy to:	Ice Miller LLP

One
American Square, Suite 2900

Indianapolis,
Indiana 46282

Attn:
Stephen J. Hackman, Esq.

 

     

     

    

 

All such notices and
other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have
been given when received, provided that if not given during normal business hours for the recipient, shall be deemed to have been
given at the opening of business on the next Business Day.

 

26.       Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Company and the Bank and their
respective successors and assigns; provided, however, that the foregoing shall not authorize any assignment by the
Company of its rights or duties hereunder. The Bank does not undertake to give or to do or refrain from doing anything directly
to or for the benefit of any person other than the Company and, with respect to the Company, other than as described herein. Although
third parties may incidentally benefit from this Agreement, there are no intended beneficiaries other than the Company and the
Bank.

 

27.       Indulgence;
Modifications. No delay or failure of the Bank to exercise any right, power, or privilege hereunder shall affect such right,
power or privilege, nor shall any single or partial exercise thereof preclude any further exercise thereof, nor the exercise of
any other right, power or privilege. The rights of the Bank hereunder are cumulative and are not exclusive of any rights or remedies
that the Bank would otherwise have except as modified herein. No amendment, modification, supplement, termination, consent, or
waiver of or to any provision of this Agreement, or any of the Loan Documents, nor any consent to any departure therefrom, shall
in any event be effective unless the same shall be in writing and signed by or on behalf of the Bank.

 

28.       Governing
Law and Service of Process. This Agreement is made in the State of Ohio and the validity, construction, interpretation
and enforcement of this Agreement, and the rights of the parties thereunder shall be determined under, governed by and construed
in accordance with the internal laws of the State of Ohio, without regard to principles of conflicts of law. Service of process,
sufficient for personal jurisdiction in any action against the Company, may be made by registered or certified mail, return receipt
requested, to the address set forth in Paragraph 25 hereof.

 

29.       Execution
in Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts,
each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken
together, shall constitute but one and the same agreement. Subject to Paragraph 16 hereof, this Agreement shall become effective
upon the execution of a counterpart hereof by each of the parties hereto.

 

30.       Entire
Agreement. This Agreement, together with any agreements, documents and instruments executed and delivered pursuant hereto
or in connection herewith, or incorporated herein by reference, contain the entire agreement of the parties hereto and no party
shall be bound by anything not expressed in writing.

 

     

     

    

 

31.       Severability.
If any part, term or provision of this Agreement is determined by a court to be illegal, unenforceable or in conflict with any
law of the State of Ohio, federal law, or any other applicable law, the validity and enforceability of the remaining portions or
provisions of this Agreement shall not be affected thereby.

 

32.       Reversal
of Payments. If the Bank receives any payments or proceeds of Collateral that are subsequently invalidated, declared to
be fraudulent or preferential, set aside or required to be paid to a trustee, debtor-in-possession, receiver or any other party
under any bankruptcy law, common law, equitable cause or otherwise, then, to such extent, the obligations or part thereof intended
to be satisfied by such payments or proceeds shall be reserved and continue as if such payments or proceeds had not been received
by the Bank.

 

33.       Attorneys’
Fees. The Company shall reimburse the Bank promptly upon demand for all costs and expenses, including without limitation
reasonable attorneys’ fees and expenses (without any requirement to produce a detailed time analysis), expended or incurred
by the Bank (regardless whether arising out of any arbitration, judicial reference or legal action), in connection with (a) the
structuring, negotiation and preparation of, or the interpretation of, or the amendment or enforcement of, this Agreement and the
Loan Documents, including without limitation during any workout, attempted workout and/or in connection with the rendering of legal
advice as to the Bank’s rights, remedies and obligations under this Agreement or any of the Loan Documents, whether or not
any form of legal proceeding has commenced, (b) collecting any sum that becomes due the Bank under this Agreement or any of
the Loan Documents, (c) any proceeding for declaratory relief, any counterclaim to any proceeding or any appeal, (d) the protection,
preservation or enforcement of any rights or remedies of the Bank or any of the Collateral, whether or not any form of legal proceeding
is commenced, or (e) any action to defend, protect, assert or preserve any of the Bank’s rights or remedies as a result of
or related to any case or proceeding under Chapter 11 of the United States Code, as amended, or any similar law of any jurisdiction.
All of such costs and expenses shall bear interest from the time of demand at the highest rate then in effect under the Loan Documents
or this Agreement and shall be considered part of the Indebtedness, as that term is defined in this Agreement.

 

34.       Release
of Claims and Waiver. The Company hereby releases, remises, acquits and forever discharges the Bank and its respective
employees, agents, representatives, consultants, attorneys, fiduciaries, servants, officers, directors, partners, predecessors,
successors and assigns, subsidiary corporations, parent corporations and related corporate divisions (all of the foregoing hereinafter
called the “Released Parties”), from any and all actions and causes of action, judgments, executions,
suits, debts, claims, demands, liabilities, obligations, damages and expenses of any and every character, known or unknown, direct
and/or indirect, at law or in equity, of whatsoever kind or nature, whether heretofore or hereafter arising, for or because of
any matter or things done, omitted or suffered to be done by any of the Released Parties prior to and including the date of execution
hereof, and in any way directly or indirectly arising out of or in any way connected to this Agreement or any of the Loan Documents,
including but not limited to claims relating to any settlement negotiations (all of the foregoing hereinafter called the “Released
Matters”). The Company acknowledges that the agreements in this paragraph are intended to be in full satisfaction
of all or any alleged injuries or damages arising in connection with the Released Matters. The Company represents and warrants
to the Bank that it has not purported to transfer, assign or otherwise convey any right, title or interest it has in any Released
Matter to any other Person and that the foregoing constitutes a full and complete release of all Released Matters.

 

     

     

    

 

35.       Further
Assurances. The Company shall execute, acknowledge and deliver or cause to be executed, acknowledged and delivered, any
and all such further assurances and other agreements or instruments, and take or cause to be taken all such other action as shall
be reasonably necessary from time to time (a) to give full effect to this Agreement and the Loan Documents and the transactions
contemplated thereby, and (b) to perfect and protect the liens and security interests created by this Agreement and/or the Loan
Documents.

 

36.       VENUE;
JURISDICTION; JURY TRIAL WAIVER. THE BANK AND THE COMPANY HEREBY IRREVOCABLY:

 

(A)       CONSENT
TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN COLUMBUS, OHIO;

 

(B)       AGREE
THAT VENUE SHALL BE PROPER IN ANY COURT OF COMPETENT JURISDICTION LOCATED IN COLUMBUS, OHIO; AND

 

(C)       WAIVE
ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING
IS BROUGHT IN ACCORDANCE WITH THIS PARAGRAPH.

 

37.       JURY
TRIAL WAIVER. THE PARTIES HERETO ACKNOWLEDGE AND AGREE THAT THERE MAY BE A CONSTITUTIONAL RIGHT TO A JURY TRIAL IN CONNECTION
WITH ANY CLAIM, DISPUTE OR LAWSUIT ARISING BETWEEN OR AMONG THEM, BUT THAT SUCH RIGHT MAY BE WAIVED. ACCORDINGLY, THE PARTIES AGREE
THAT, NOTWITHSTANDING SUCH CONSTITUTIONAL RIGHT, IN THIS COMMERCIAL MATTER THE PARTIES BELIEVE AND AGREE THAT IT SHALL BE IN THEIR
BEST INTERESTS TO WAIVE SUCH RIGHT, AND, ACCORDINGLY, HEREBY WAIVE SUCH RIGHT TO A JURY TRIAL, AND FURTHER AGREE THAT THE BEST
FORUM FOR HEARING ANY CLAIM, DISPUTE, OR LAWSUIT, IF ANY, ARISING IN CONNECTION WITH THIS AGREEMENT, THE LOAN DOCUMENTS, OR THE
RELATIONSHIP AMONG THE PARTIES HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, OR WHETHER SOUNDING IN CONTRACT
OR TORT OR OTHERWISE, SHALL BE A COURT OF COMPETENT JURISDICTION SITTING WITHOUT A JURY.

 

[Signature pages follow.]

 

     

     

    

 

IN WITNESS WHEREOF,
the parties hereby have executed this Agreement as of the date first noted above.

 

THE BANK:

 

THE HUNTINGTON NATIONAL BANK

 

 

 

 

By: Douglas Howard, Vice President

 

 

THE COMPANY:

 

BIOANALYTICAL SYSTEMS, INC.

 

 

 

 

By: Jacqueline M. Lemke, President

 

 

Acknowledgement
of The Company

 

	State of _______________	)
	 	)    ss.
	County of ______________	)

 

On this ___ day of _____________, 2016, before me personally
appeared Jacqueline M. Lemke, proved to me on the basis of satisfactory evidence to be the person who executed the foregoing instrument
on behalf of BIOANALYTICAL SYSTEMS, INC., an Indiana corporation, who being by me duly sworn did depose and say that she is an
authorized representative of said entity, that said instrument was signed on behalf of said entity and that she acknowledged said
instrument to be the free act and deed of said entity.

 

 

 

 

Notary Public

 

     

     

    

 

REAFFIRMATION AND CONSENT OF GUARANTOR

 

The undersigned, BAS
EVANSVILLE, INC., an Indiana corporation (the “Guarantor”), being the Guarantor under that certain
Guaranty Agreement dated as of May 14, 2014 (the “Guaranty”), pursuant to which the Guarantor unconditionally
guaranteed the obligations of BIOANALYTICAL SYSTEMS, INC., an Indiana corporation (the “Company”)
to THE HUNTINGTON NATIONAL BANK (the “Bank”) arising under the terms of that certain Credit Agreement
dated as of May 14, 2014, entered into by and between the Company and the Bank, as amended by a First Amendment to Credit Agreement
dated as of May 14, 2015, a Forbearance Agreement and Second Amendment to Credit Agreement dated as of April 27, 2016, a Second
Forbearance Agreement and Third Amendment to Credit Agreement dated as of July 1, 2016, and a Third Forbearance Agreement and Fourth
Amendment to Credit Agreement dated as of September 30, 2016 (such Credit Agreement, as so amended, hereinafter the “Loan
Agreement”), hereby (i) consents to the execution of the foregoing Fourth Forbearance Agreement and Fifth Amendment
to Credit Agreement to be entered into by and between the Company and the Bank (the “Forbearance Agreement”);
(ii) agrees that the Obligations (as defined in the Guaranty) shall include the obligations of the Company to the Bank under the
Forbearance Agreement and the Loan Agreement, as amended by the Forbearance Agreement; (iii) reaffirms its Obligations under, and
agrees to be bound by, the terms of the Guaranty; (iv) reaffirms each warranty, representation, covenant and agreement made by
it in the Guaranty, and (v) releases, remises, acquits and forever discharges the Released Parties from the Released Matters (as
such terms are defined in the above Forbearance Agreement).

 

Further, the Guarantor acknowledges that
although it may be the present practice of the Bank to obtain its consent to the execution and delivery of the Forbearance Agreement,
the Bank may discontinue any such practice in the future and such discontinuance shall not be construed as a waiver of the Bank’s
right, in its discretion, to enter into any further amendments or to grant any further waivers or forbearance of any of the terms
and conditions of the Loan Agreement or Forbearance Agreement without the consent of the Guarantor, and the Bank’s failure
to request or obtain the consent of the Guarantor to any such amendment or waiver shall not affect the liability of the Guarantor
to the Bank under the Guaranty.

 

IN WITNESS WHEREOF, the Guarantor has executed
this Reaffirmation and Consent of Guarantor by its duly authorized officer as of ____________ __, 2016.

 

	 	BAS EVANSVILLE, INC.
	 	 
	 	 
	 	By: 	              
	 	 	 
	 	Its:Exhibit 10.1

 

KAYA HOLDINGS, INC.

2011 INCENTIVE STOCK
PLAN, as amended

 

This Kaya Holdings, Inc. 2011 Incentive
Stock Plan, as amended (the “Plan”) is designed to retain directors, executives and selected employees
and consultants and reward them for making contributions to the success of the Company. These objectives are accomplished by making
long-term incentive awards under the Plan thereby providing Participants with a proprietary interest in the growth and performance
of the Company.

 

		1.	Definitions.

“Board” -
The Board of Directors of the Company.

 

“Cause”
- means:

 

		(i)	A
                                         material breach committed by the Participant of the Participant’s service or fiduciary
                                         obligations to the Company (other than mental illness), which is not remedied in a reasonable
                                         period of time after receipt of written notice from the Company specifying such breach;
                                         or

		(ii)	The
                                         Participant terminating his services with the Company other than for “Good Reason”
                                         (as such term is set forth in any employment, consulting, Grant or other agreement between
                                         the Company and the Participant); or

		(iii)	The
                                         conviction of the Participant of a felony based upon a violent crime or a sexual crime
                                         involving baseness, vileness or depravity; or

		(iv)	Substance
                                         abuse by the Participant in a manner which materially affects the performance of the
                                         Participant's obligations hereunder; or

		(v)	Any
                                         act or omission of the Participant which is materially contrary to the business interests,
                                         representations or goodwill of the Company; or

		(vi)	Such
                                         other definition as set forth in any employment, consulting, Grant or other agreement
                                         between the Company and the Participant, which agreement shall control.

“Change
in Control” - Means, and shall be deemed to have occurred upon the occurrence of, any one of the following events:

 

		(i)	The
                                         acquisition in one transaction by any individual, entity or group (within the meaning
                                         of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”)
                                         of beneficial ownership (within the meaning of Rule 13(d)(3) promulgated under the Exchange
                                         Act) of shares or other securities (as defined in Section 3(a)(10) of the Exchange Act)
                                         representing fifty-one percent (51%) or more of outstanding Stock of the Company; provided,
                                         however, that a Change in Control as defined in this clause (1) shall not be deemed to
                                         occur in connection with any acquisition by the Company, an employee benefit plan of
                                         the Company or any Person who immediately prior to the effective date of this Plan is
                                         a holder of Stock (a “Current Shareholder”) so long as such acquisition
                                         does not result in any Person other than the Company, such employee benefit plan or such
                                         Current Shareholder beneficially owning shares or securities representing fifty-one percent
                                         (51%) or more of the outstanding Stock; or

    	 	

	 

    	 

    
		(ii)	On
                                         the date that, during any 12-month period, an election occurs of persons as directors
                                         of the Company that causes two-thirds or more of the Board to consist of persons other
                                         than (A) persons who, were members of the Board on the effective date of this Plan; and
                                         (B) persons who were nominated by the Board for election as members of the Board at a
                                         time when at least two-thirds of the Board consisted of persons who were members of the
                                         Board on the effective date of this Plan; provided, however, that any person nominated
                                         for election by the Board when at least two-thirds of the members of the Board are persons
                                         described in subclause (A) or (B) and persons who were themselves previously nominated
                                         in accordance with this clause (ii) shall, for this purpose, be deemed to have
                                         been nominated by a Board composed of persons described in subclause (B); or

		(iii)	Closing
                                         of a reorganization, merger, consolidation or similar transaction of the Company (a “Reorganization
                                         Transaction”), in each case, unless, immediately following such Reorganization
                                         Transaction, more than fifty percent (50%) of, respectively, the outstanding shares of
                                         common stock (or similar equity security) of the corporation or other entity resulting
                                         from or surviving such Reorganization Transaction and the combined voting power of the
                                         securities of such corporation or other entity entitled to vote generally in the election
                                         of directors, is then beneficially owned, directly or indirectly, by the individuals
                                         and entities who were the respective beneficial owners of the outstanding Stock immediately
                                         prior to such Reorganization Transaction in substantially the same proportions as their
                                         ownership of the outstanding Stock immediately prior to such Reorganization Transaction;
                                         or

		(iv)	The
                                         Company Closing of (A) a complete liquidation or dissolution of the Company; or (B) the
                                         sale or other disposition of all or substantially all of the assets of the Company to
                                         a corporation or other entity, unless, with respect to such corporation or other entity,
                                         immediately following such sale or other disposition more than 50% of, respectively,
                                         the outstanding shares of common stock (or similar equity security) of such corporation
                                         or other entity and the combined voting power of the securities of such corporation or
                                         other entity entitled to vote generally in the election of directors, is then beneficially
                                         owned, directly or indirectly, by the individuals and entities who were the respective
                                         beneficial owners of the outstanding Stock immediately prior to such sale or disposition
                                         in substantially the same proportions as their ownership of the outstanding Stock immediately
                                         prior to such sale or disposition.

“Code” -
The Internal Revenue Code of 1986, as amended from time to time.

 

“Committee” -
The Compensation Committee of the Company's Board, or such other committee of the Board that is designated by the Board to administer
the Plan, composed of not less than two members of the Board who are disinterested persons, as contemplated by Rule 16b-3 (“Rule
16b-3”) promulgated under the Securities Exchange Act of 1934.

 

“Company” –
Kaya Holdings, Inc., a Delaware corporation and its subsidiaries including subsidiaries of subsidiaries.

 

“Disability”
- Means, and a Participant shall be considered disabled, if the Participant meets one of the following requirements:

 

		(i)	The
                                         Participant is unable to engage in any substantial gainful activity by reason of any
                                         medically determinable physical or mental impairment that can be expected to result in
                                         death or can be expected to last for a continuous period of not less than twelve (12)
                                         months; or

    	 	
2
	 

    	 

    
		(ii)	The
                                         Participant is, by reason of any medically determinable physical or mental impairment
                                         that can be expected to result in death or can be expected to last for a continuous period
                                         of not less than twelve (12) months, receiving income replacement benefits for a period
                                         of not less than three months under an accident and health plan covering employees of
                                         the Participant's employer; or

		(iii)	Such
                                         other definition of Disability as provided in an employment, consulting, Grant or other
                                         agreement between the Company and the Participants, the provisions of which agreement
                                         shall control.

“Exchange
Act” - The Securities Exchange Act of 1934, as amended from time to time.

 

“Fair
Market Value” - The fair market value of the Company's issued and outstanding Stock as determined in good faith by the
Board or Committee, which determination shall be conclusive and binding; provided however, that if there is a public market for
such Stock, the Fair Market Value per share shall be the average of the bid and asked prices on the date of grant of the Option,
or if listed on Nasdaq or a stock exchange, the closing price on Nasdaq or such exchange on such date of grant.

 

“Grant”
- The grant of any form of stock option, stock award, or stock purchase offer, whether granted singly, in combination, or
in tandem, to a Participant pursuant to such terms, conditions and limitations as the Committee may establish in order to fulfill
the objectives of the Plan.

 

“Grant
Agreement” - An agreement between the Company and a Participant that sets forth the terms, conditions and limitations
applicable to a Grant.

 

“Incentive
Stock Option” – An employee stock option that meets the requirements of Section 422 of Code when granted and at
all times beginning from the grant until its exercise.

 

“Nonstatutory
Option” – Defined in Section 3 of the Plan.

 

“Option”
- Either an Incentive Stock Option, in accordance with Section 422 of Code, or a Nonstatutory Option, to purchase the Company's
Stock that may be awarded to a Participant under the Plan. A Participant who receives an award of an Option shall be referred
to as an “Optionee.”

 

“Participant”
- A director, advisory board member, officer, employee or consultant of the Company to whom an Award has been made
under the Plan.

 

“Restricted
Stock” – Defined in Section 6 of the Plan.

 

“Restricted
Stock Award” – A grant made under the Plan in Restricted Stock.

 

“Restricted
Stock Unit” - A Grant made under the Plan denominated in units of Restricted Stock.

 

“Securities
Act” - The Securities Act of 1933, as amended from time to time.

 

“Stock”
- Authorized and issued or unissued shares of common stock of the Company.

 

“Stock
Award” - A Grant made under the Plan in Restricted Stock or denominated in units of Restricted Stock.

 

“Ten
Percent Holder” – Defined in Section 3 of the Plan.

 

    	 	
3
	 

    	 

    

		2.	Administration.
                                         The Plan shall be administered by the Board, provided however, that the Board may
                                         delegate such administration to the Committee. Subject to the provisions of the Plan,
                                         the Board and/or the Committee shall have authority to (a) grant, in its discretion,
                                         Incentive Stock Options in accordance with Section 422 of the Code, or Nonstatutory Options,
                                         Stock Awards; (b) determine in good faith the fair market value of the Stock covered
                                         by any Grant; (c) determine which eligible persons shall receive Grants and the number
                                         of shares, restrictions, terms and conditions to be included in such Grants; (d) construe
                                         and interpret the Plan; (e) promulgate, amend and rescind rules and regulations relating
                                         to its administration, and correct defects, omissions and inconsistencies in the Plan
                                         or any Grant; (f) consistent with the Plan and with the consent of the Participant, as
                                         appropriate, amend any outstanding Grant or amend the vesting date or dates thereof;
                                         (g) determine the duration and purpose of leaves of absence which may be granted to Participants
                                         without constituting termination of their employment for the purpose of the Plan or any
                                         Grant; and (h) make all other determinations necessary or advisable for the Plan's administration.
                                         The interpretation and construction by the Board of any provisions of the Plan or selection
                                         of Participants shall be conclusive and final. No member of the Board or the Committee
                                         shall be liable for any action or determination made in good faith with respect to the
                                         Plan or any Grant made thereunder. The Board shall have the power to add or remove members
                                         of the Committee, from time to time, and to fill vacancies thereon arising by resignation,
                                         death, removal, or otherwise. Meetings shall be held at such times and places as shall
                                         be determined by the Committee. A majority of the members of the Committee shall constitute
                                         a quorum for the transaction of business, and the vote of a majority of those members
                                         present at any meeting shall decide any question brought before that meeting.

		3.	Eligibility.

General:
The persons who shall be eligible to receive Grants shall be directors, advisory board members, officers and employees of
or consultants to the Company. The term consultant shall mean any person, other than an employee, who is engaged by the Company
to render services and is compensated for such services. An Optionee may hold more than one Option.

 

Incentive
Stock Options: Incentive Stock Options may only be issued to employees of the Company. Incentive Stock Options may be granted
to officers or directors, provided they are also employees of the Company. Payment of a director's fee shall not be sufficient
to constitute employment by the Company.

 

The
Company shall not grant an Incentive Stock Option under the Plan to any employee if such Grant would result in such employee holding
the right to exercise for the first time in any one calendar year, under all Incentive Stock Options granted under the Plan or
any other plan maintained by the Company, with respect to shares of Stock having an aggregate fair market value, determined as
of the date the Option is granted, in excess of $100,000. Should it be determined that an Incentive Stock Option granted under
the Plan exceeds such maximum for any reason other than a failure in good faith to value the Stock subject to such option, the
excess portion of such option shall be considered a “Nonstatutory Option”. To the extent the employee holds
two (2) or more such Options which become exercisable for the first time in the same calendar year, the foregoing limitation on
the exercisability of such Option as Incentive Stock Options under the Federal tax laws shall be applied on the basis of the order
in which such Options are granted. If, for any reason, an entire Option does not qualify as an Incentive Stock Option by reason
of exceeding such maximum, such Option shall be considered a Nonstatutory Option.

Nonstatutory
Option: The provisions of the foregoing Section 3 shall not apply to any Option designated as a “Nonstatutory
Option” or sets forth the intention of the parties that the Option be a Nonstatutory Option.

 

Stock
Awards: The provisions of this Section 3 shall not apply to any Stock Award under the Plan.

 

    	 	
4
	 

    	 

    

		4.	Stock.

Authorized
Stock: Stock subject to Grants may be either unissued or reacquired Stock.

 

Number
of Shares: Subject to adjustment as provided in Sections 5 and 9 of the Plan, the total number of shares of
Stock which may be purchased or granted directly by Options or Stock Awards, or purchased indirectly through exercise of Options
granted under the Plan shall not exceed Twenty Million (20,000,000) shares of Stock. If any Grant shall for any reason terminate
or expire, any shares allocated thereto but remaining unpurchased upon such expiration or termination shall again be available
for Grants with respect thereto under the Plan as though no Grant had previously occurred with respect to such shares. Any shares
of Stock issued pursuant to a Grant and repurchased pursuant to the terms thereof shall be available for future Grants as though
not previously covered by a Grant.

 

Reservation
of Shares: The Company shall reserve and keep available at all times during the term of the Plan such number of shares as
shall be sufficient to satisfy the requirements of the Plan. If, after reasonable efforts, which efforts shall not include the
registration of the Plan or Grants under the Securities Act, the Company is unable to obtain authority from any applicable regulatory
body, which authorization is deemed necessary by legal counsel for the Company for the lawful issuance of shares hereunder, the
Company shall be relieved of any liability with respect to its failure to issue and sell the shares for which such requisite authority
was so deemed necessary unless and until such authority is obtained.

 

Application
of Funds: The proceeds received by the Company from the sale of Stock pursuant to the exercise of Options or rights under
Stock Purchase Agreements will be used for general corporate purposes.

 

No
Obligation to Exercise: The issuance of a Grant shall not impose any obligation upon the Participant to exercise any rights
under such Grant.

 

		5.	Terms
                                         and Conditions of Options. Options granted hereunder shall be evidenced by agreements
                                         between the Company and the respective Optionees, in the form approved by the Board or
                                         Committee. Option agreements need not be identical, and in each case may include such
                                         provisions as the Board or Committee may determine, but all such agreements shall be
                                         subject to and limited by the following terms and conditions:

Number
of Shares: Each Option shall state the number of shares to which it pertains.

 

Exercise
Price: Each Option shall state the exercise price, which shall be determined as follows:

 

		(i)	Any
                                         Incentive Stock Option granted to a person who at the time the Option is granted owns
                                         (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than
                                         ten percent (10%) of the total combined voting power or value of all classes of stock
                                         of the Company (“Ten Percent Holder”) shall have an exercise
                                         price of no less than one hundred ten percent (110%) of the Fair Market Value of the
                                         Stock as of the date of grant; and

		(ii)	Incentive
                                         Stock Options granted to a person who at the time the Option is granted is not a Ten
                                         Percent Holder shall have an exercise price of no less than 100% of the Fair Market Value
                                         of the Stock as of the date of grant.

		(iii)	In
                                         no event shall an Option’s exercise price be less than fair market value of the
                                         underlying Stock on the date of grant.

    	 	
5
	 

    	 

    

Medium
and Time of Payment: The exercise price shall become immediately due upon exercise of the Option and shall be paid in cash
or check made payable to the Company. Should the Company's outstanding Stock be registered under Section 12(g) of the Exchange
Act at the time the Option is exercised, then the exercise price may also be paid as follows:

 

		(i)	In
                                         shares of Stock held by the Optionee for the requisite period necessary to avoid a charge
                                         to the Company's earnings for financial reporting purposes and valued at Fair Market
                                         Value on the exercise date, or

		(ii)	Through
                                         a special sale and remittance procedure pursuant to which the Optionee shall concurrently
                                         provide irrevocable written instructions to (A) to a Company designated brokerage firm
                                         to effect the immediate sale of the purchased shares and remit to the Company, out of
                                         the sale proceeds available on the settlement date, sufficient funds to cover the aggregate
                                         exercise price payable for the purchased shares plus all applicable Federal, state and
                                         local income and employment taxes required to be withheld by the Company by reason of
                                         such purchase; and (B) the Company to deliver the certificates for the purchased shares
                                         directly to such brokerage firm in order to complete the sale transaction.

At the
discretion of the Board or the Committee, exercisable either at the time of Option grant or of Option exercise, the exercise price
may also be paid in such other form of consideration permitted by the Delaware corporations law as may be acceptable to the Board,
or the Committee, including, without limitation, a promissory note or by means of a “cashless” exercise.

 

Term
and Exercise of Options: Any Option granted hereunder shall become exercisable over a period of no longer than five (5) years,
subject to such other conditions imposed by the Board or the Committee in its sole discretion, provided however, to the extent
the right to exercise any Option(s) pursuant to an agreement between the Company and a Participant is based upon an event. In
no event shall any Option be exercisable after the expiration of ten (10) years from the date it is granted, and no Incentive
Stock Option granted to a Ten Percent Holder shall, by its terms, be exercisable after the expiration of five (5) years from the
date of the Option. Unless otherwise specified by the Board or the Committee in the resolution authorizing such Option, the date
of grant of an Option shall be deemed to be the date upon which the Board or the Committee authorizes the granting of such Option.

 

Each
Option shall be exercisable to the nearest whole share, in installments or otherwise, as the respective Option agreements may
provide. During the lifetime of an Optionee, the Option shall be exercisable only by the Optionee and shall not be assignable
or transferable by the Optionee, and no other person shall acquire any rights therein. To the extent not exercised, installments
(if more than one) shall accumulate, but shall be exercisable, in whole or in part, only during the period for exercise as stated
in the Option agreement, whether or not other installments are then exercisable.

 

Termination
of Status as Employee, Director or Advisory Board Member or Consultants: If the services of an employee, director, advisory
board member or consultant are terminated, the Board may specify the period during which Options granted to such Participants
may be exercised after termination of Optionee’s employment or services, which shall not be less than thirty (30) days nor
more than one year after such termination, but in no event more than the remaining term of the Option. Notwithstanding the foregoing,
in the case of termination for “Cause,” the Option shall automatically terminate as of the termination
of employment or services. The Option may be exercised only with respect to installments that the Optionee could have exercised
at the date of termination of employment or services. Nothing contained herein or in any Option granted pursuant hereto shall
be construed to affect or restrict in any way the right of the Company to terminate the employment or services of an Optionee
with or without cause.

 

    	 	
6
	 

    	 

    

Disability
of Optionee: If an Optionee is disabled (within the meaning of this Plan) at the time of termination, the portion of such
Optionee’s Option which was exercisable at the date of termination may be exercised in whole or in part, for such period,
as determined by the Board and set forth in the Option, of not less than six (6) months nor more than one year after such termination,
but in no event more than the remaining term of the Option. The Option may be so exercised only with respect to installments exercisable
at the time of Optionee’s Disability and not previously exercised by Optionee.

 

Death
of Optionee: If an Optionee dies while employed by, engaged as a consultant to, or serving as a Director of the Company, the
portion of such Optionee's Option which was exercisable at the date of death may be exercised, in whole or in part, by the estate
of the decedent or by a person succeeding to the right to exercise such Option at any time within (i) a period, as determined
by the Board and set forth in the Option, of not less than six (6) months nor more than one (1) year after Optionee's death, which
period shall not be more, in the case of a Nonstatutory Option, than the period for exercise following termination of employment
or services; or (ii) during the remaining term of the Option, whichever is the lesser. The Option may be so exercised only with
respect to installments exercisable at the time of Optionee's death and not previously exercised by Optionee.

 

Nontransferability
of Options or other Awards: No Option or other Award shall be transferable by the Optionee, except, to the extent permitted
by the Code, (i) by will or by the laws of descent and distribution; (ii) to immediate family members (spouse, child, grandchild,
parent or sibling) of an Optionee or trusts for the benefit of an Optionee or an Optionee’s immediate family members; or
(iii) a business entity in which Optionee is at least a twenty-five percent (25%) equity owner.

 

Recapitalization:
Subject to any required action of shareholders, the number of shares of Stock covered by each outstanding Option, and the
exercise price per share thereof set forth in each such Option, shall be proportionately adjusted for any increase or decrease
in the number of issued shares of Stock of the Company resulting from a stock split, stock dividend, combination, subdivision
or reclassification of shares, or the payment of a stock dividend, or any other increase or decrease in the number of such shares
affected without receipt of consideration by the Company; provided, however, the conversion of any convertible securities of the
Company shall not be deemed to have been “effected without receipt of consideration” by the Company.

 

In
the event of a proposed dissolution or liquidation of the Company, a merger or consolidation in which the Company is not the surviving
entity, or a sale of all or substantially all of the assets or capital stock of the Company (collectively, a “Reorganization”),
unless otherwise provided by the Board, this Option shall terminate immediately prior to such date as is determined by the Board,
which date shall be no later than the consummation of such Reorganization. In such event, if the entity which shall be the surviving
entity does not tender to Optionee an offer, for which it has no obligation to do so, to substitute for any unexercised Option
a stock option or capital stock of such surviving entity, as applicable, which on an equitable basis shall provide the Optionee
with substantially the same economic benefit as such unexercised Option, then the Board may grant to such Optionee, in its sole
and absolute discretion and without obligation, the right for a period commencing thirty (30) days prior to and ending immediately
prior to the date determined by the Board pursuant hereto for termination of the Option or during the remaining term of the Option,
whichever is the lesser, to exercise any unexpired Option or Options without regard to the installment provisions of Section
6 of the Plan; provided, that any such right granted shall be granted to all Optionees not receiving an offer to receive substitute
options on a consistent basis, and provided further, that any such exercise shall be subject to the consummation of such Reorganization.

 

Subject
to any required action of shareholders, if the Company shall be the surviving entity in any merger or consolidation, each outstanding
Option thereafter shall pertain to and apply to the securities to which a holder of shares of Stock equal to the shares subject
to the Option would have been entitled by reason of such merger or consolidation.

 

In
the event of a change in the Stock of the Company as presently constituted, which is limited to a change of all of its authorized
shares without par value into the same number of shares with a par value, the shares resulting from any such change shall be deemed
to be the Stock within the meaning of the Plan.

 

    	 	
7
	 

    	 

    

To
the extent that the foregoing adjustments relate to stock or securities of the Company, such adjustments shall be made by the
Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided in this Section
5, the Optionee shall have no rights by reason of any subdivision or consolidation of shares of stock of any class
or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class, and the
number or price of shares of Stock subject to any Option shall not be affected by, and no adjustment shall be made by reason of,
any dissolution, liquidation, merger, consolidation or sale of assets or capital stock, or any issue by the Company of shares
of stock of any class or securities convertible into shares of stock of any class.

 

The
Grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make any adjustments,
reclassifications, reorganizations or changes in its capital or business structure or to merge, consolidate, dissolve, or liquidate
or to sell or transfer all or any part of its business or assets.

 

Rights
as a Shareholder: An Optionee shall have no rights as a shareholder with respect to any shares covered by an Option until
the effective date of the exercise of such Option by Optionee. No adjustment shall be made for dividends (ordinary or extraordinary,
whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date
such stock certificate is issued, except as expressly provided in this Section 5.

 

Modification,
Acceleration, and Renewal of Options: Subject to the terms and conditions and within the limitations of the Plan, the Board
may modify an Option, or, once an Option is exercisable, accelerate the rate at which it may be exercised, or accept the surrender
of outstanding Options (to the extent not theretofore exercised) and authorize the granting of new Options in substitution for
such Options, provided such action is permissible under Section 422 of the Code and applicable state securities laws. Notwithstanding
the provisions of this Section 5, however, no modification of an Option shall, (i) extend beyond its original term;
and (ii) without the consent of the Optionee, alter to the Optionee's detriment or impair any rights or obligations under any
Option theretofore granted under the Plan.

 

Other
Provisions: The Option agreements authorized under the Plan shall contain such other provisions, including, without limitation,
restrictions upon the exercise of the Options, as the Board or the Committee shall deem advisable. Shares shall not be issued
pursuant to the exercise of an Option, if the exercise of such Option or the issuance of shares thereunder would violate, in the
opinion of legal counsel for the Company, the provisions of any applicable law or the rules or regulations of any applicable governmental
or administrative agency or body, such as the Code, the Securities Act, the Exchange Act, applicable state securities laws, Delaware
corporation law, and the rules promulgated under the foregoing or the rules and regulations of any exchange upon which the shares
of the Company are listed. Without limiting the generality of the foregoing, the exercise of each Option shall be subject to the
condition that if at any time the Company shall determine that (i) the satisfaction of withholding tax or other similar liabilities;
(ii) the listing, registration or qualification of any shares covered by such exercise upon any securities exchange or under any
state or federal law; or (iii) the consent or approval of any regulatory body; or (iv) the perfection of any exemption from any
such withholding, listing, registration, qualification, consent or approval is necessary or desirable in connection with such
exercise or the issuance of shares thereunder, then in any such event, such exercise shall not be effective unless such withholding,
listing registration, qualification, consent, approval or exemption shall have been effected, obtained or perfected free of any
conditions not acceptable to the Company. Notwithstanding the foregoing, the Company shall take all commercially reasonable efforts
to ensure that the shares may be issuable upon exercise of an Option.

 

		6.	Stock
                                         Awards.

Types
of Grants.

 

Restricted
Stock Awards. Restricted Stock Awards may be granted to any eligible Participant selected by the Board or the Committee in
such amounts and subject to such terms and conditions as determined by the Board or the Committee. The Board or the Committee
shall specify the purchase price, if any, to be paid by an eligible Participant to the Company with respect to any Restricted
Stock Award; provided, however, that value of the consideration shall not be less than the par value of Stock, unless otherwise
permitted by applicable law. All Restricted Stock Awards will be made pursuant to the execution of a Restricted Stock Award Agreement
in the form approved by the Board or Committee.

 

    	 	
8
	 

    	 

    

Vesting
of Restricted Stock Awards. At the time of grant, the Board or the Committee shall specify the date(s) on which the Restricted
Stock Award shall become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate,
including, without limitation, vesting based upon duration of employment or directorship with the Company or any affiliate, one
or more performance criteria, Company performance, individual performance or other specific criteria, in each case on a specified
date or dates or over any period or periods, as determined by the Board or the Committee.

 

Restricted
Stock Units. Restricted Stock Units may be granted to any eligible Participant selected by the Board or the Committee in such
amounts and subject to such terms and conditions as determined by the Board or the Committee. Except as otherwise provided herein,
the term of a Restricted Stock Unit award shall be set by the Board or the Committee in its sole discretion. The Board or the
Committee shall specify the purchase price, if any, to be paid by to the Company with respect to any Restricted Stock Unit award;
provided, however, that value of the consideration shall not be less than the par value of Stock, unless otherwise permitted by
applicable law. All Restricted Stock Units will be made pursuant to the execution of a Restricted Stock Units Agreement in the
form approved by the Board or Committee.

 

Vesting
of Restricted Stock Units. At the time of grant, the Board or the Committee shall specify the date(s) on which the Restricted
Stock Units shall become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate,
including, without limitation, vesting based upon duration of employment or directorship with the Company or any affiliate, one
or more performance criteria, Company performance, individual performance or other specific criteria, in each case on a specified
date or dates or over any period or periods, as determined by the Board or the Committee.

 

Maturity
and Payment. At the time of grant, the Board or the Committee shall specify the maturity date applicable to each grant of
Restricted Stock Units which shall be no earlier than the vesting date(s) of the award and may be determined at the election of
the Participant; provided that, except as otherwise determined by the Board or the Committee, set forth in any applicable Stock
Award Agreement, and subject to compliance with Section 409A of the Code, in no event shall the maturity date relating to each
Restricted Stock Unit occur following the later of (i) the 15th day of the third month following the end of calendar year in which
the Restricted Stock Unit vests; or (ii) the 15th day of the third month following the end of the Company’s fiscal
year in which the Restricted Stock Unit vests. On the maturity date, the Company shall transfer to the Participant one unrestricted,
fully transferable share of Stock for each Restricted Stock Unit scheduled to be paid out on such date and not previously forfeited,
or in the sole discretion of the Board or the Committee, an amount in cash equal to the Fair Market Value of such shares on the
maturity date or a combination of cash and Stock as determined by the Board or the Committee.

 

Payment
upon Termination of Service. An award of Restricted Stock Units shall only be payable while the Participant is an employee
or member of the Board, as applicable; provided, however, that the Board or the Committee, in its sole and absolute discretion
may provide (in a Stock Award Agreement or otherwise) that a Restricted Stock Unit award may be paid subsequent to a termination
of service in certain events, including a Change in Control, the Participant’s death, retirement or disability or any other
specified termination of service.

 

No
Rights as a Shareholder. Unless otherwise determined by the Board or the Committee, a Participant who is awarded Restricted
Stock Units shall possess no incidents of ownership with respect to the shares represented by such Restricted Stock Units, unless
and until the same are transferred to the Participant pursuant to the terms of this Plan and the Stock Award Agreement.

 

Conditions
and Restrictions. Shares of Stock which Participants may receive as a Stock Award under a Stock Award Agreement may include
such restrictions as the Board or Committee, as applicable, shall determine, including restrictions on transfer, repurchase rights,
right of first refusal, and forfeiture provisions. When transfer of Stock is so restricted or subject to forfeiture provisions
it is referred to as “Restricted Stock.” Further, with Board or Committee approval, Stock Awards may be deferred,
either in the form of installments or a future lump sum distribution. The Board or Committee may permit selected Participants
to elect to defer distributions of Stock Awards in accordance with procedures established by the Board or Committee to assure
that such deferrals comply with applicable requirements of the Code including, at the choice of Participants, the capability to
make further deferrals for distribution after retirement. Any deferred distribution, whether elected by the Participant or specified
by the Stock Award Agreement or by the Board or Committee, may require the payment be forfeited in accordance with the provisions
of Section 6. Dividends or dividend equivalent rights may be extended to and made part of any Stock Award denominated in
Stock or units of Stock, subject to such terms, conditions and restrictions as the Board or Committee may establish.

 

		7.	Cancellation
                                         and Rescission of Grants. Unless the Stock Award Agreement specifies otherwise,
                                         the Board or Committee, as applicable, may cancel any unexpired, unpaid, or deferred
                                         Grants at any time if the Participant is not in compliance with all other applicable
                                         provisions of the Stock Award Agreement, the Plan and with the following conditions:

    	 	
9
	 

    	 

    
		(a)	A
                                         Participant shall not render services for any organization or engage directly or indirectly
                                         in any business which, in the judgment of the chief executive officer of the Company
                                         or other senior officer designated by the Board or Committee, is or becomes competitive
                                         with the Company, or which organization or business, or the rendering of services to
                                         such organization or business, is or becomes otherwise prejudicial to or in conflict
                                         with the interests of the Company. For Participants whose employment has terminated,
                                         the judgment of the chief executive officer shall be based on the Participant's position
                                         and responsibilities while employed by the Company, the Participant's post-employment
                                         responsibilities and position with the other organization or business, the extent of
                                         past, current and potential competition or conflict between the Company and the other
                                         organization or business, the effect on the Company's customers, suppliers and competitors
                                         and such other considerations as are deemed relevant given the applicable facts and circumstances.
                                         A Participant who has retired shall be free, however, to purchase as an investment or
                                         otherwise, stock or other securities of such organization or business so long as they
                                         are listed upon a recognized securities exchange or traded over-the-counter, and such
                                         investment does not represent a substantial investment to the Participant or a greater
                                         than ten percent (10%) equity interest in the organization or business.

		(b)	A
                                         Participant shall not, without prior written authorization from the Company, disclose
                                         to anyone outside the Company, or use in other than the Company's business, any confidential
                                         information or material, as defined in a Company agreement regarding confidential information
                                         and intellectual property, relating to the business of the Company, acquired by the Participant
                                         either during or after employment with the Company.

		(c)	A
                                         Participant shall disclose promptly and assign to the Company all right, title and interest
                                         in any invention or idea, patentable or not, made or conceived by the Participant during
                                         employment by the Company, relating in any manner to the actual or anticipated business,
                                         research or development work of the Company and shall do anything reasonably necessary
                                         to enable the Company to secure a patent where appropriate in the United States and in
                                         foreign countries.

		(d)	Upon
                                         exercise, payment or delivery pursuant to a Grant, the Participant shall certify on a
                                         form acceptable to the Committee that he or she is in compliance with the terms and conditions
                                         of the Plan. Failure to comply with all of the provisions of this Section 7 prior
                                         to, or during the six months after, any exercise, payment or delivery pursuant to a Grant
                                         shall cause such exercise, payment or delivery to be rescinded. The Company shall notify
                                         the Participant in writing of any such rescission within two (2) years after such exercise,
                                         payment or delivery. Within ten (10) days after receiving such a notice from the Company,
                                         the Participant shall pay to the Company the amount of any gain realized or payment received
                                         as a result of the rescinded exercise, payment or delivery pursuant to a Grant. Such
                                         payment shall be made either in cash or by returning to the Company the number of shares
                                         of Stock that the Participant received in connection with the rescinded exercise, payment
                                         or delivery.

Nonassignability.

 

		(i)	Except
                                         pursuant to Section 5, no Grant or any other benefit under the Plan shall be assignable
                                         or transferable, or payable to or exercisable by, anyone other than the Participant to
                                         whom it was granted.

		(ii)	Where
                                         a Participant terminates employment and retains a Grant pursuant to Section 5 in
                                         order to assume a position with a governmental, charitable or educational institution,
                                         the Board or Committee, in its discretion and to the extent permitted by law, may authorize
                                         a third party (including but not limited to the trustee of a “blind” trust),
                                         acceptable to the applicable governmental or institutional authorities, the Participant
                                         and the Board or Committee, to act on behalf of the Participant with regard to such Stock
                                         Awards.

    	 	
10
	 

    	 

    

Termination
of Employment. If the employment or service to the Company of a Participant terminates, other than pursuant to any of the
following provisions under this Section 7, all unexercised, deferred and unpaid Stock Awards shall be cancelled
immediately, unless the Stock Award Agreement provides otherwise:

 

		(i)	Retirement
                                         Under a Company Retirement Plan. When a Participant's employment terminates as a
                                         result of retirement in accordance with the terms of a Company retirement plan, the Board
                                         or Committee may permit Stock Awards to continue in effect beyond the date of retirement
                                         in accordance with the applicable Grant Agreement and the exercisability and vesting
                                         of any such Grants may be accelerated.

		(ii)	Rights
                                         in the Best Interests of the Company. When a Participant resigns from the Company
                                         or terminates providing its services to the Company and, in the judgment of the Board
                                         or Committee, the acceleration and/or continuation of outstanding Stock Awards would
                                         be in the best interests of the Company, the Board or Committee may (i) authorize, where
                                         appropriate, the acceleration and/or continuation of all or any part of Grants issued
                                         prior to such termination and (ii) permit the exercise, vesting and payment of such Grants
                                         for such period as may be set forth in the applicable Grant Agreement, subject to earlier
                                         cancellation pursuant to Section 10 or at such time as the Board or Committee
                                         shall deem the continuation of all or any part of the Participant's Grants are not in
                                         the Company's best interest.

		(iii)	Death
                                         or Disability of a Participant.

		(1)	In
                                         the event of a Participant's death, the Participant's estate or beneficiaries shall have
                                         a period up to the expiration date specified in the Grant Agreement within which to receive
                                         or exercise any outstanding Grant held by the Participant under such terms as may be
                                         specified in the applicable Grant Agreement. Rights to any such outstanding Grants shall
                                         pass by will or the laws of descent and distribution in the following order: (a) to beneficiaries
                                         so designated by the Participant; if none, then (b) to a legal representative of the
                                         Participant; if none, then (c) to the persons entitled thereto as determined by a court
                                         of competent jurisdiction. Grants so passing shall be made at such times and in such
                                         manner as if the Participant were living.

		(2)	In
                                         the event a Participant is deemed by the Board or Committee to be disabled, Grants and
                                         rights to any such Grants may be paid to or exercised by the Participant, if legally
                                         competent, or a committee or other legally designated guardian or representative if the
                                         Participant is legally incompetent by virtue of such disability.

		(3)	After
                                         the death or disability of a Participant, the Board or Committee may in its sole discretion
                                         at any time (i) terminate restrictions in Grant Agreement; (ii) accelerate any or all
                                         installments and rights; and (iii) instruct the Company to pay the total of any accelerated
                                         payments in a lump sum to the Participant, the Participant's estate, beneficiaries or
                                         representative; notwithstanding that, in the absence of such termination of restrictions
                                         or acceleration of payments, any or all of the payments due under the Grant might ultimately
                                         have become payable to other beneficiaries.

		(4)	In
                                         the event of uncertainty as to interpretation of or controversies concerning this Section
                                         7, the determinations of the Board or Committee, as applicable, shall be binding
                                         and conclusive.

    	 	
11
	 

    	 

    
		8.	Change
                                         in Control.  Unless otherwise provided in the applicable Grant Agreement, in
                                         the event of a Change in Control, one hundred percent (100%) of the vesting restrictions
                                         applicable to each Participant's Grant(s) shall terminate fully and the Participant shall
                                         immediately have the right to the delivery of share certificates or exercise of Options,
                                         to the extent that a Participant's Option(s) are unvested, one hundred percent (100%)
                                         of such unvested portion shall vest.

		9.	Investment
                                         Intent. All Grants under the Plan are intended to be exempt from registration
                                         under the Securities Act provided by Rule 701 thereunder. Unless and until the granting
                                         of Options or sale and issuance of Stock subject to the Plan are registered under the
                                         Securities Act or shall be exempt pursuant to the rules promulgated thereunder, each
                                         Grant under the Plan shall provide that the purchases or other acquisitions of Stock
                                         thereunder shall be for investment purposes and not with a view to, or for resale in
                                         connection with, any distribution thereof. Further, unless the issuance and sale of the
                                         Stock have been registered under the Securities Act, each Grant shall provide that no
                                         shares shall be purchased upon the exercise of the rights under such Grant unless and
                                         until (i) all then applicable requirements of state and federal laws and regulatory agencies
                                         shall have been fully complied with to the satisfaction of the Company and its counsel,
                                         and (ii) if requested to do so by the Company, the person exercising the rights under
                                         the Grant shall (A) give written assurances as to knowledge and experience of such person
                                         (or a representative employed by such person) in financial and business matters and the
                                         ability of such person (or representative) to evaluate the merits and risks of exercising
                                         the Option, and (B) execute and deliver to the Company a letter of investment intent
                                         and/or such other form related to applicable exemptions from registration, all in such
                                         form and substance as the Company may require. If shares are issued upon exercise of
                                         any rights under a Grant without registration under the Securities Act, subsequent registration
                                         of such shares shall relieve the purchaser thereof of any investment restrictions or
                                         representations made upon the exercise of such rights.

		10.	Amendment, Modification, Suspension or Discontinuance of the Plan. The Board may, insofar as permitted by law, from time to time, with respect to any shares at the time not subject to outstanding Grants, suspend or terminate the Plan or revise or amend it in any respect whatsoever, except that without the approval of the shareholders of the Company, no such revision or amendment shall (i) increase the number of shares subject to the Plan, (ii) decrease the price at which Grants may be granted, (iii) materially increase the benefits to Participants, or (iv) change the class of persons eligible to receive Grants under the Plan; provided, however, no such action shall alter or impair the rights and obligations under any Option, or Stock Award, outstanding as of the date thereof without the written consent of the Participant thereunder. No Grant may be issued while the Plan is suspended or after it is terminated, but the rights and obligations under any Grant issued while the Plan is in effect shall not be impaired by suspension or termination of the Plan.

                                                                                 

                                                                                In the event of any change in the outstanding Stock by reason of a stock split, stock dividend, combination or reclassification of shares, recapitalization, merger, or similar event, the Board or the Committee may adjust proportionally (a) the number of shares of Stock (i) reserved under the Plan, (ii) available for Incentive Stock Options and Nonstatutory Options and (iii) covered by outstanding Stock Awards; (b) the Stock prices related to outstanding Grants; and (c) the appropriate Fair Market Value and other price determinations for such Grants. In the event of any other change affecting the Stock or any distribution (other than normal cash dividends) to holders of Stock, such adjustments as may be deemed equitable by the Board or the Committee, including adjustments to avoid fractional shares, shall be made to give proper effect to such event. In the event of a corporate merger, consolidation, acquisition of property or stock, separation, reorganization or liquidation, the Board or the Committee shall be authorized to issue or assume stock options, whether or not in a transaction to which Section 424(a) of the Code applies, and other Grants by means of substitution of new Grant Agreements for previously issued Grants or an assumption of previously issued Grants.

    	 	
12
	 

    	 

    

		11.	Tax
                                         Withholding. The Company shall have the right to deduct applicable taxes from
                                         any Grant payment and withhold, at the time of delivery or exercise of Options, Stock
                                         Awards or vesting of shares under such Grants, an appropriate number of shares for payment
                                         of taxes required by law or to take such other action as may be necessary in the opinion
                                         of the Company to satisfy all obligations for withholding of such taxes. If Stock is
                                         used to satisfy tax withholding, such stock shall be valued based on the Fair Market
                                         Value when the tax withholding is required to be made.

		12.	Availability
                                         of Information. During the term of the Plan and any additional period during
                                         which a Grant granted pursuant to the Plan shall be exercisable, the Company shall make
                                         available, not later than one hundred and twenty (120) days following the close of each
                                         of its fiscal years, such financial and other information regarding the Company as is
                                         required by the bylaws of the Company and applicable law to be furnished in an annual
                                         report to the shareholders of the Company.

		13.	Notice.
                                         Any written notice to the Company required by any of the provisions of the Plan shall
                                         be addressed to the chief personnel officer or to the chief executive officer of the
                                         Company, and shall become effective when it is received by the office of the chief personnel
                                         officer or the chief executive officer.

		14.	Indemnification
                                         of Board.  In addition to such other rights or indemnifications as they may have
                                         as directors or otherwise, and to the extent allowed by applicable law, the members of
                                         the Board and the Committee shall be indemnified by the Company against the reasonable
                                         expenses, including attorneys' fees, actually and necessarily incurred in connection
                                         with the defense of any claim, action, suit or proceeding, or in connection with any
                                         appeal thereof, to which they or any of them may be a party by reason of any action taken,
                                         or failure to act, under or in connection with the Plan or any Grant granted thereunder,
                                         and against all amounts paid by them in settlement thereof (provided such settlement
                                         is approved by independent legal counsel selected by the Company) or paid by them in
                                         satisfaction of a judgment in any such claim, action, suit or proceeding, except in any
                                         case in relation to matters as to which it shall be adjudged in such claim, action, suit
                                         or proceeding that such Board or Committee member is liable for negligence or misconduct
                                         in the performance of his or her duties; provided that within sixty (60) days after institution
                                         of any such action, suit or Board proceeding the member involved shall offer the Company,
                                         in writing, the opportunity, at its own expense, to handle and defend the same.

		15.	Governing
                                         Law. The Plan and all determinations made and actions taken pursuant hereto,
                                         to the extent not otherwise governed by the Code or the securities laws of the United
                                         States, shall be governed by the laws of the State of Delaware and construed accordingly.

		16.	Effective
                                         and Termination Dates. The Plan shall become effective on the date it is approved
                                         by the Board. The Plan shall terminate ten years later, subject to earlier termination
                                         by the Board pursuant to Section 10.

This 2011
Incentive Stock Plan was duly adopted and approved by the Board effective October 1, 2011 and was amended on November 24,
2014 and September 22, 2016.

    	 	
13

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