Document:

Exhibit 10.1

 

SORRENTO THERAPEUTICS, INC.

2019 STOCK INCENTIVE PLAN

 

 

PLAN DOCUMENT

 

 

1. Establishment, Purpose, and Types
of Awards 

 

Sorrento Therapeutics, Inc. (the “Company”)
hereby establishes this equity-based incentive compensation plan to be known as the “Sorrento Therapeutics, Inc. 2019
Stock Incentive Plan” (hereinafter referred to as the “Plan”) in order to provide incentives and
awards to select employees, directors, consultants, and advisors of the Company and its Affiliates. Upon approval by the Company’s
stockholders of the Plan, the Company shall no longer issue new awards under its Amended and Restated 2009 Stock Incentive Plan
(the “Original Plan”). In the event that the Company’s stockholders do not approve the Plan, the
Original Plan will continue in full force and effect.

 

(a) Awards. The Plan permits grants
of the following types of awards (“Awards”), according to the Sections of the Plan listed here:

 

Section 6   Options

Section 7   Share Appreciation Rights

Section 8   Restricted Shares, Restricted Share Units, Unrestricted Shares and Dividend Equivalents

Section 9   Performance Awards

 

(b) Effect on Other Plans. The Plan
is not intended to affect and shall not affect any stock options, equity-based compensation or other benefits that the Company
or its Affiliates may have provided pursuant to any agreement, plan, or program that is independent of this Plan.

 

2. Defined Terms

 

Terms in the Plan that begin with an initial capital letter
have the defined meaning set forth in Appendix A, unless defined elsewhere in this Plan or the context of their
use clearly indicates a different meaning.

 

3. Shares Subject to the Plan

 

Subject to the provisions of Section 12:

 

(a) The maximum number of Shares that the
Company may issue for all Awards is 10,000,000 Shares.

 

(b) For all Awards, the Shares issued pursuant
to the Plan may be authorized but unissued Shares, or Shares that the Company has reacquired or otherwise holds in treasury. Shares
that are subject to an Award under this Plan that for any reason expire, are forfeited, are cancelled, become unexercisable, or
are settled for cash (in whole or in part), and Shares that are for any other reason not paid or delivered under the Plan shall
again, except to the extent prohibited by Applicable Law, be available for subsequent Awards under this Plan. In addition, the
Committee may make future Awards with respect to Shares that the Company retains from otherwise delivering pursuant to an Award
under this Plan either (i) as payment of the exercise or purchase price of an Award, or (ii) in order to satisfy the
withholding or employment taxes due upon grant, exercise, vesting or distribution of an Award. Any Shares forfeited by the Participant
or repurchased by the Company under Section 8(b) at a price not greater than the price originally paid by the Participant
so that such Shares are returned to the Company will again be available for Awards under the Plan. The payment of Dividend Equivalents
in cash in conjunction with any outstanding Awards shall not be counted against the Shares available for issuance under the Plan.
Notwithstanding the provisions of this Section 3(b), no Shares may again be optioned, granted or awarded if such action would
cause an Incentive Share Option to fail to qualify as an incentive stock option under Section 422 of the Code.

 

     

     

    

 

(c) Notwithstanding the foregoing, but subject
to adjustments pursuant to Section 12, the number of Shares that are available for ISO Awards shall be determined, to the
extent required under applicable tax laws, by reducing the number of Shares designated in Section 3(a) by the number of Shares
issued pursuant to Awards, provided that any Shares that are either issued or purchased under the Plan and forfeited back
to the Plan, or surrendered in payment of the exercise price for an Award, shall be available for issuance pursuant to future ISO
Awards.

 

(d) Substitute Awards shall not reduce the
Shares authorized for grant under the Plan. Additionally, in the event that a company acquired by the Company or with which the
Company combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such
acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the
extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination
to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination)
may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan; provided that
Awards using such available Shares shall not be made after the date awards or grants could have been made under the terms of the
pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were employed by or providing
services to the acquired company immediately prior to such acquisition or combination.

 

4. Administration

 

(a) General. The Committee shall administer
the Plan in accordance with its terms. In its sole discretion, the Board may, at any time and from time to time, exercise any and
all rights and duties of the Committee under the Plan except with respect to matters which, under Rule 16b-3 under the Exchange
Act or any successor rule or the rules of any securities exchange or automated quotation system on which the Shares are listed,
quoted or traded are required to be determined in the sole discretion of the Committee. To the extent necessary to comply with
Rule 16b-3 of the Exchange Act, the Committee (or another committee or subcommittee of the Board assuming the functions of
the Committee under the Plan) shall take all action with respect to such Awards, and the individuals taking such action shall consist
solely of two or more non-employee directors appointed by and holding office at the pleasure of the Board, each of whom is intended
to qualify as both a “non-employee director” as defined by Rule 16b-3 of the Exchange Act or any successor rule.
Additionally, to the extent required by Applicable Law, each of the individuals constituting the Committee (or another committee
or subcommittee of the Board assuming the functions of the Committee under the Plan) shall be an “independent director”
under the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded. Notwithstanding
the foregoing, any action taken by the Committee shall be valid and effective, whether or not members of the Committee at the time
of such action are later determined not to have satisfied the requirements for membership set forth in this Section 4 or otherwise
provided in any charter of the Committee. The Committee shall hold meetings at such times and places as it may determine, and shall
make such rules and regulations for the conduct of its business as it deems advisable.

 

(b) Committee Composition. The Board
shall appoint the members of the Committee. If, and to the extent permitted by Applicable Law, the Committee may authorize one
or more Reporting Persons (or other officers) to make Awards to Eligible Persons who are not Reporting Persons (or other officers
whom the Committee has specifically authorized to make Awards). The Board may at any time appoint additional members to the Committee,
remove and replace members of the Committee with or without Cause, and fill vacancies on the Committee however caused.

 

(c) Powers of the Committee. Subject
to the provisions of the Plan, the Committee shall have the authority, in its sole discretion:

 

(i) to determine Eligible Persons to whom
Awards shall be granted from time to time, and the number of Shares, units, or SARs to be covered by each Award;

 

(ii) to determine, from time to time, the
Fair Market Value of Shares;

 

(iii) to determine, and to set forth in Award
Agreements, the terms and conditions of all Awards, including any applicable exercise or purchase price, the installments and conditions
under which an Award shall become vested (which may be based on performance), terminated, expired, cancelled, or replaced, and
the circumstances for vesting acceleration or waiver of forfeiture restrictions, and other restrictions and limitations;

 

    2 

     

    

 

(iv) to approve the forms of Award Agreements,
and all other documents, notices and certificates in connection therewith, which need not be identical either as to type of Award
or among Participants;

 

(v) to construe and interpret the terms of
the Plan and any Award Agreement, to determine the meaning of their terms, and to prescribe, amend, and rescind rules and procedures
relating to the Plan and its administration;

 

(vi) to the extent consistent with the purposes
of the Plan, and without amending the Plan, to modify, cancel, or waive the Company’s rights with respect to any Awards,
to adjust or to modify Award Agreements for changes in Applicable Law, and to recognize differences in foreign law, tax policies,
or customs;

 

(vii) to implement paperless documentation,
granting, settlement, or exercise of Awards by a Participant may be permitted through the use of such an automated system, in all
cases, in the event that the Company establishes for itself, or uses, the services of a third party to establish an automated system
for the documentation, granting, settlement, or exercise of Awards, such as a system using an internet website or interactive voice
response; and

 

(viii) to make all other interpretations,
and to take all other actions that the Committee may consider necessary or advisable to administer the Plan, or to effectuate its
purposes.

 

Subject to Applicable Law and the restrictions set forth in
the Plan, the Committee may delegate administrative functions to individuals who are Reporting Persons, officers, or Employees
of the Company or its Affiliates.

 

(d) Action by Committee. Each member
of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by an
officer or other employee of the Company or any Affiliate thereof, the Company’s independent certified public accounts, or
any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan.

 

(e) Deference to Committee Determinations.
The Committee shall have the discretion to interpret or construe ambiguous, unclear, or implied (but omitted) terms in any fashion
it deems to be appropriate in its sole discretion, and to make any findings of fact needed in the administration of the Plan or
Award Agreements. The Committee’s prior exercise of its discretionary authority shall not obligate it to exercise its authority
in a like fashion thereafter. The Committee’s interpretation and construction of any provision of the Plan, or of any Award
or Award Agreement, shall be final, binding, and conclusive. The validity of any such interpretation, construction, decision or
finding of fact shall not be given de novo review if challenged in court, by arbitration, or in any other forum, and shall be upheld
unless clearly made in bad faith or materially affected by fraud. The Committee may make any determination required hereunder,
including determinations under Section 12, on an Award-by-Award basis.

 

(f) No Liability; Indemnification.
Neither the Board nor any Committee member, nor any Person acting at the direction of the Board or the Committee, shall be liable
for any act, omission, interpretation, construction or determination made in good faith with respect to the Plan, any Award or
any Award Agreement. The Company and its Affiliates shall pay or reimburse any member of the Committee, as well as any Director,
Employee, or Consultant who takes action in connection with the Plan, for all expenses incurred with respect to the Plan, and,
to the fullest extent allowable under Applicable Law, shall indemnify each and every one of them for any claims, liabilities, and
costs (including reasonable attorneys’ fees) arising out of their good faith performance of duties under the Plan. The Company
and its Affiliates may obtain liability insurance for this purpose.

 

5. Eligibility

 

(a) General Rule. The Committee may
grant ISOs only to Employees (including officers who are Employees) of the Company, or an Affiliate that is a “parent corporation”
or “subsidiary corporation” within the meaning of Section 424 of the Code, and may grant all other Awards to any
Eligible Person. A Participant who has been granted an Award may be granted an additional Award or Awards if the Committee shall
so determine, if such person is otherwise an Eligible Person and, if otherwise, in accordance with the terms of the Plan.

 

    3 

     

    

 

(b) Grant of Awards. Subject to the
express provisions of the Plan, the Committee shall determine from the class of Eligible Persons those individuals to whom Awards
under the Plan may be granted, the number of Shares subject to each Award, and the price (if any) to be paid for the Shares or
the Award and, in the case of Performance Awards, in addition to the matters addressed in Section 9, the specific objectives, goals
and performance criteria that further define the Performance Award. Each Award shall be evidenced by an Award Agreement signed
by the Company and, if required by the Committee, by the Participant. The Award Agreement shall set forth the material terms and
conditions of the Award established by the Committee, and each Award shall be subject to the terms and conditions set forth in
Sections 22, 23, and 25 unless otherwise specifically provided in an Award Agreement. All Awards granted pursuant to the Plan shall
have a minimum vesting period of one year from the date of grant.

 

(c) Limits on Awards. Notwithstanding
any provision in the Plan to the contrary, and subject to Section 12(a): (i) the maximum aggregate number of Shares with
respect to one or more Awards that may be granted to any one person other than a Non-Employee Director during any calendar year
shall be 4,000,000; (ii) the maximum aggregate number of Shares, with respect to one or more Awards that may be granted
to any Non-Employee Director during any calendar year, shall be 250,000; and (iii) no Participant may be granted, during
any calendar year, Awards initially payable in cash that could result in such Participant receiving cash payments exceeding $5,000,000
pursuant to such Awards. The Committee will adjust these limitations pursuant to Section 12 below.

 

(d) Replacement Awards. Subject to
Applicable Laws (including any associated stockholder approval requirements), the Committee may, in its sole discretion and upon
such terms as it deems appropriate, require as a condition of the grant of an Award to a Participant that the Participant surrender
for cancellation some or all of the Awards that have previously been granted to the Participant under this Plan or otherwise. An
Award that is conditioned upon such surrender may or may not be the same type of Award, may cover the same (or a lesser or greater)
number of Shares as such surrendered Award, may have other terms that are determined without regard to the terms or conditions
of such surrendered Award, and may contain any other terms that the Committee deems appropriate. In the case of Options, these
other terms may not include an exercise price that is lower than the exercise price of the surrendered Option unless the Company’s
stockholders approve the Option grant itself or the program under which the Option grant is made pursuant to the Plan.

 

6. Option Awards

 

(a) Types; Documentation. Subject to
Section 5(a), the Committee may in its discretion grant Options pursuant to Award Agreements that are delivered to Participants.
Each Option shall be designated in the Award Agreement as an ISO or a Non-ISO, and the same Award Agreement may grant both types
of Options. At the sole discretion of the Committee, any Option may be exercisable, in whole or in part, immediately upon the grant
thereof, or only after the occurrence of a specified event, or only in installments, which installments may vary. Options granted
under the Plan may contain such terms and provisions not inconsistent with the Plan that the Committee shall deem advisable in
its sole and absolute discretion.

 

(b) ISO Limitations. No ISO shall be
granted to any person who is not an Employee of the Company or any “subsidiary corporation” of the Company, within
the meaning of Section 424 of the Code. No person who qualifies as a Ten Percent Holder may be granted an ISO unless such
ISO conforms to the applicable provisions of Section 422 of the Code. Any ISO granted under the Plan may be modified by the
Committee, with the consent of the Participant, to disqualify such Option from treatment as an “incentive stock option”
under Section 422 of the Code. To the extent that the aggregate Fair Market Value of Shares with respect to which Options
designated as ISOs first become exercisable by a Participant in any calendar year (under this Plan and any other plan of the Company
or any Affiliate) exceeds $100,000, such excess Options shall automatically be treated as Non-ISOs. For purposes of determining
whether the $100,000 limit is exceeded, the Fair Market Value of the Shares subject to an ISO shall be determined as of the Grant
Date. In reducing the number of Options treated as ISOs to meet the $100,000 limit, the most recently granted Options shall be
reduced first. In the event that Section 422 of the Code is amended to alter the limitation set forth therein, the limitation
of this Section 6(b) shall be automatically adjusted accordingly.

 

(c) Term of Option. Each Award Agreement
shall specify a term at the end of which the Option automatically expires, subject to earlier termination provisions contained
in Section 6(h); provided that the term of any Option may not exceed ten years from the Grant Date. In the case of
an ISO granted to an Employee who is a Ten Percent Holder on the Grant Date, the term of the ISO shall not exceed five years from
the Grant Date.

 

    4 

     

    

 

(d) Exercise Price. The exercise price
of an Option shall be determined by the Committee in its sole discretion and shall be set forth in the Award Agreement, provided
that:

 

(i) if an ISO is granted to an Employee who
on the Grant Date is a Ten Percent Holder, the per Share exercise price shall not be less than 110% of the Fair Market Value
per Share on the Grant Date (or the date the Option is modified, extended or renewed for purposes of Section 424(h) of the
Code); and

 

(ii) for all other Options, such per Share
exercise price shall not be less than 100% of the Fair Market Value per Share on the Grant Date (or, as to ISOs, on the date
the Option is modified, extended or renewed for purposes of Section 424(h) of the Code).

 

Neither the Company nor the Committee shall, without stockholder
approval, allow for a repricing of Options within the meaning of the federal securities laws applicable to proxy statement disclosures.

 

(e) Exercise of Option. The times,
circumstances and conditions under which an Option shall be exercisable shall be determined by the Committee in its sole discretion
and set forth in the Award Agreement. The Committee shall have the discretion to determine whether and to what extent the vesting
of Options shall be tolled during any unpaid leave of absence; provided, however, that, in the absence of such determination,
vesting of Options shall be tolled during any such leave approved by the Company. Except as limited by the Plan, at any time after
the grant of an Option, the Committee, in its sole discretion, and subject to whatever terms and conditions it selects, may accelerate
the period during which an Option vests.

 

(f) Minimum Exercise Requirements.
An Option may not be exercised for a fraction of a Share. The Committee may require in an Award Agreement that an Option be exercised
as to a minimum number of Shares, provided that such requirement shall not prevent a Participant from purchasing the full
number of Shares as to which the Option is then exercisable.

 

(g) Methods of Exercise. Prior to its
expiration pursuant to the terms of the applicable Award Agreement, and subject to the times, circumstances and conditions for
exercise contained in the applicable Award Agreement, each Option may be exercised, in whole or in part (provided that the
Company shall not be required to issue fractional shares), by delivery of written notice of exercise to the secretary of the Company
accompanied by payment of the full exercise price of the Shares being purchased. The Committee shall determine the acceptable methods
of payment for exercise of the Option on the Grant Date, and such methods shall be specified in the applicable Award Agreement.
The methods of payment that the Committee may, in its discretion, accept or commit to accept in an Option Award Agreement include:

 

(i) cash or check payable to the Company (in
U.S. dollars);

 

(ii) the Participant’s surrender of
a number of Shares that are subject to the Option being exercised, and that have a Fair Market Value equal to the exercise price
and minimum taxes payable (at statutory rates) upon exercise, with any additional amount that the Participant owes being paid in
cash or by check payable to the Company (in U.S. dollars);

 

(iii) other Shares that (A) are owned
by the Participant who is purchasing Shares pursuant to an Option, (B) have a Fair Market Value on the date of surrender equal
to the aggregate exercise price of the Shares as to which the Option is being exercised, (C) were not acquired by such Participant
pursuant to the exercise of an Option, unless such Shares have been owned by such Participant for at least six months or such longer
period as the Committee may determine, (D) are all, at the time of such surrender, free and clear of any and all claims, pledges,
liens and encumbrances, or any restrictions which would in any manner restrict the transfer of such shares to or by the Company
(other than such restrictions as may have existed prior to an issuance of such Shares by the Company to such Participant), and
(E) are duly endorsed for transfer to the Company;

 

    5 

     

    

 

(iv) a cashless exercise program that the
Committee may approve, from time to time in its discretion, pursuant to which a Participant may concurrently provide irrevocable
instructions (A) to such Participant’s broker or dealer 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 exercise price of the
Option plus all applicable taxes required to be withheld by the Company by reason of such exercise, and (B) to the Company
to deliver the certificates for the purchased Shares directly to such broker or dealer in order to complete the sale;

 

(v) any combination of the foregoing methods
of payment; or

 

(vi) any other form of legal consideration
acceptable to the Committee in its sole discretion.

 

The Company shall not be required to deliver Shares pursuant
to the exercise of an Option until payment of the full exercise price therefore is received by the Company.

 

(h) Termination of Continuous Service.
The Committee may establish and set forth in the applicable Award Agreement the terms and conditions on which an Option shall remain
exercisable, if at all, following termination of a Participant’s Continuous Service. Except as limited by the requirements
of Section 409A or Section 422 of the Code and regulations and rulings thereunder, the Committee may waive or modify
these provisions at any time. To the extent that a Participant is not entitled to exercise an Option at the date of his or her
termination of Continuous Service, or if the Participant (or other person entitled to exercise the Option) does not exercise the
Option to the extent so entitled within the time specified in the Award Agreement or below (as applicable), the Option shall terminate
and the Shares underlying the unexercised portion of the Option shall revert to the Plan and become available for future Awards.
Notwithstanding any other provision in this Plan, in no event may any Option be exercised after the expiration of the Option term
as set forth in the Award Agreement.

 

The following provisions shall apply to the extent an Award
Agreement does not specify the terms and conditions upon which an Option shall terminate when there is a termination of a Participant’s
Continuous Service:

 

(i) Termination other than Upon Disability
or Death or for Cause. In the event of termination of a Participant’s Continuous Service (other than as a result of Participant’s
death, Disability or termination for Cause), the Participant shall have the right to exercise an Option at any time within 3
months following such termination to the extent the Participant was entitled to exercise such Option at the date of such termination.

 

(i) Disability. In the event of termination
of a Participant’s Continuous Service as a result of his or her being Disabled, the Participant shall have the right to exercise
an Option at any time within one year following such termination to the extent the Participant was entitled to exercise such Option
at the date of such termination.

 

(ii) Death. In the event of the death
of a Participant either during the period of Continuous Service since the Grant Date of an Option, or within 30 days
following termination of the Participant’s Continuous Service for any reason other than due to Cause, the Option may be exercised,
at any time within one year following the date of the Participant’s death, by the Participant’s estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but only to the extent the right to exercise the Option
had vested as of the earlier to occur of the date of the Participant’s death or the date the Participant’s Continuous
Service terminated.

 

(iii) Cause. If the Committee determines
that a Participant’s Continuous Service terminated due to Cause, the Participant shall immediately forfeit the right to exercise
any Option, and any such Option shall be considered immediately null and void.

 

7. Share Appreciate Rights (SARs)

 

(a) Grants. The Committee may, in its
discretion, grant Share Appreciation Rights to any Eligible Person pursuant to Award Agreements, in any of the following forms:

 

(i) SARs Related to Options. The Committee
may grant SARs either concurrently with the grant of an Option or with respect to an outstanding Option, in which case the SAR
shall extend to all or a portion of the Shares covered by the related Option. An SAR shall entitle the Participant who holds the
related Option, upon exercise of the SAR and surrender of the related Option, or portion thereof, to the extent the SAR and related
Option each were previously unexercised, to receive payment of an amount determined pursuant to Sections 7(e) and 7(f).
Any SAR granted in connection with an ISO will contain such terms as may be required to comply with the provisions of Section 422
of the Code and the regulations promulgated thereunder.

 

    6 

     

    

 

(ii) SARs Independent of Options. The
Committee may grant SARs that are independent of any Option subject to such conditions as the Committee may in its discretion determine,
which conditions will be set forth in the applicable Award Agreement.

 

(iii) Limited SARs. The Committee may
grant SARs exercisable only upon, or in respect of, a Change in Control or any other specified event, and such limited SARs may
relate to or operate in tandem or combination with or substitution for Options or other SARs, or on a stand-alone basis, and may
be payable in cash or Shares based on the spread between the exercise price of the SAR, and (A) a price based upon, or equal
to, the Fair Market Value of the Shares during a specified period, at a specified time within a specified period before, after
or including the date of such event, or (B) a price related to consideration payable to Company’s stockholders generally
in connection with the event.

 

(b) Exercise Price. The per Share exercise
price of an SAR shall be determined in the sole discretion of the Committee, shall be set forth in the applicable Award Agreement,
and shall be no less than 100% of the Fair Market Value of one Share on the date the SAR is granted. The exercise price of
an SAR related to an Option shall be the same as the exercise price of the related Option. Neither the Company nor the Committee
shall, without stockholder approval, allow for a repricing of any SAR within the meaning of federal securities laws applicable
to proxy statement disclosures.

 

(c) Exercise of SARs. Unless the Award
Agreement otherwise provides, an SAR related to an Option will be exercisable at such time or times, and to the extent, that the
related Option will be exercisable; provided that the Award Agreement shall not, without the approval of the stockholders
of the Company, provide for a vesting period for the exercise of the SAR that is more favorable to the Participant than the exercise
period for the related Option. An SAR may not have a term exceeding ten years from its Grant Date. An SAR granted independently
of any other Award will be exercisable pursuant to the terms of the Award Agreement. Whether an SAR is related to an Option or
is granted independently, the SAR may only be exercised when the Fair Market Value of the Shares underlying the SAR exceeds the
exercise price of the SAR. Except as limited by the Plan, at any time after the grant of an SAR, the Committee, in its sole discretion,
and subject to whatever terms and conditions it selects, may accelerate the period during which an SAR vests.

 

(d) Effect on Available Shares. All
SARs that are settled in shares of the Company’s stock shall be counted in full against the number of shares available for
award under the Plan, regardless of the number of shares actually issued upon settlement of the SARs.

 

(e) Payment. Upon exercise of an SAR
related to an Option and the attendant surrender of an exercisable portion of any related Award, the Participant will be entitled
to receive payment of an amount determined by multiplying:

 

(i) the excess of the Fair Market Value of
a Share on the date of exercise of the SAR over the exercise price per Share of the SAR, by

 

(ii) the number of Shares with respect to
which the SAR has been exercised.

 

Notwithstanding the foregoing, an SAR granted independently
of an Option (i) may limit the amount payable to the Participant to a percentage specified in the Award Agreement, and (ii) shall
be subject to any payment or other restrictions that the Committee may, at any time, impose in its discretion, including restrictions
intended to conform the SARs with Section 409A of the Code.

 

    7 

     

    

 

(f) Form and Terms of Payment.
Subject to Applicable Law, the Committee may, in its sole discretion, settle the amount determined under Section 7(e) solely
in cash, solely in Shares (valued at their Fair Market Value on the date of exercise of the SAR), or partly in cash and partly
in Shares, with cash paid in lieu of fractional shares.

 

(g) Termination of Employment or Consulting
Relationship. The Committee shall establish, and set forth in the applicable Award Agreement, the terms and conditions
on which an SAR shall remain exercisable, if at all, following termination of a Participant’s Continuous Service. The provisions
of Section 6(h) shall apply to the extent an Award Agreement does not specify the terms and conditions upon which an SAR shall
terminate when a Participant’s Continuous Service terminates.

 

8. Restricted Shares, Restricted Share
Units, Unrestricted Shares and Dividend Equivalents

 

(a) Grants. The Committee may, in its
sole discretion, grant restricted shares (“Restricted Shares”) to any Eligible Person and shall evidence
such grant in an Award Agreement that is delivered to the Participant and that sets forth the number of Restricted Shares, the
purchase price for such Restricted Shares (if any), and the terms upon which the Restricted Shares may become vested. In addition,
the Company may, in its discretion, grant to any Eligible Person the right to receive Shares after certain vesting requirements
are met (“Restricted Share Units”), and shall evidence such grant in an Award Agreement that is delivered
to the Participant and that sets forth the number of Shares (or formula, that may be based on future performance or conditions,
for determining the number of Shares) that the Participant shall be entitled to receive upon vesting and the terms upon which the
Shares subject to a Restricted Share Unit may become vested. The Committee may condition any Award of Restricted Shares or Restricted
Share Units to a Participant on receiving from the Participant such further assurances and documents as the Committee may require
to enforce the restrictions. In addition, the Committee may grant Awards hereunder in the form of unrestricted shares (“Unrestricted
Shares”), which shall vest in full upon the date of grant or such other date as the Committee may determine or which
the Committee may issue pursuant to any program under which one or more Eligible Persons (selected by the Committee in its sole
discretion) elect to pay for such Shares or to receive Unrestricted Shares in lieu of cash bonuses that would otherwise be paid.

 

(b) Vesting and Forfeiture. The Committee
shall set forth in an Award Agreement granting Restricted Shares or Restricted Share Units, the terms and conditions under which
the Participant’s interest in the Restricted Shares or the Shares subject to Restricted Share Units will become vested and
non-forfeitable. Except as set forth in the applicable Award Agreement or the Committee otherwise determines, upon termination
of a Participant’s Continuous Service for any reason, the Participant shall forfeit his or her Restricted Shares and Restricted
Share Units; provided that if a Participant purchases the Restricted Shares and forfeits them for any reason, the Company
shall return the purchase price to the Participant only if and to the extent set forth in an Award Agreement.

 

(c) Issuance of Restricted Shares Prior
to Vesting. The Company shall issue stock certificates that evidence Restricted Shares pending the lapse of applicable restrictions,
and that bear a legend making appropriate reference to such restrictions. Except as set forth in the applicable Award Agreement
or as the Committee otherwise determines, the Company or a third party that the Company designates shall hold such Restricted Shares
and any dividends that accrue with respect to Restricted Shares pursuant to Section 8(e) below.

 

(d) Issuance of Shares upon Vesting.
As soon as practicable after vesting of a Participant’s Restricted Shares (or Shares underlying Restricted Share Units)
and the Participant’s satisfaction of applicable tax withholding requirements, the Company shall release to the Participant,
free from the vesting restrictions, one Share for each vested Restricted Share (or issue one Share free of the vesting restriction
for each vested Restricted Share Unit), unless an Award Agreement provides otherwise. No fractional shares shall be distributed,
and cash shall be paid in lieu thereof.

 

(e) Rights as a Stockholder. Unless
otherwise provided in an Award Agreement, and subject to Section 8(b), upon issuance of Restricted Shares, the Participant
shall have, unless otherwise provided by the Committee, all the rights of a stockholder with respect to said Shares, including
the right to vote the Shares; provided, however, that in no event shall a Participant holding Restricted Shares be entitled to
receive dividends, payments or other distributions paid with respect to Restricted Shares prior to the time the Restricted Shares.
In addition, with respect to a Restricted Share with performance-based vesting, dividends which are paid prior to vesting shall
only be paid out to the Participant to the extent that the performance-based vesting conditions are subsequently satisfied and
the Restricted Share vests.

 

    8 

     

    

 

(f) Section 83(b) Elections. A
Participant may make an election under Section 83(b) of the Code (the “Section 83(b) Election”)
with respect to Restricted Shares.

 

(g) Dividend Equivalents. Dividend
Equivalents may be granted by the Committee based on dividends declared on Shares, during the period between the date an Award
is granted to a Participant and the date such Award vests, is exercised, is distributed or expires, as determined by the Committee.
Such Dividend Equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such
limitations as may be determined by the Committee. In addition, Dividend Equivalents with respect to an Award with performance-based
vesting that are based on dividends paid prior to the vesting of such Award shall only be paid out to the Participant to the extent
that the performance-based vesting conditions are subsequently satisfied and the Award vests. Notwithstanding the foregoing, no
Dividend Equivalents shall be payable with respect to Options or Share appreciation rights.

 

9. Performance Awards

 

(a) Performance Awards. The Committee
is authorized to grant Performance Awards, including Performance Unit awards, determined in the Committee’s discretion from
time to time, to any Eligible Person. The value of Performance Awards, including Performance Units and any cash awards, may be
linked to any one or more of the Performance Measures or other specific criteria determined by the Committee, in each case, on
a specified date or dates or over any period or periods determined by the Committee. Performance Awards, including Performance
Unit awards, may be paid in cash, Shares, or a combination of cash and Shares, as determined by the Committee. Subject to the limitations
set forth in Section 5(c), the Committee may, in its discretion, grant Performance Awards to any Eligible Person and shall
evidence such grant in an Award Agreement that is delivered to the Participant which sets forth the terms and conditions of the
Award. With respect to each such Performance Award, the Committee shall establish, in writing, a “Performance Period,”
“Performance Goal(s)” based on the “Performance Measure(s),” and “Performance Formula(e)” (each
such term being hereinafter defined).

 

A Participant shall be eligible to receive
payment in respect of a Performance Award only to the extent that the Performance Goal(s) for such Award is achieved and the Performance
Formula(e), as applied against such Performance Goal(s), determines that all or some portion of such Participant’s Award
has been earned for the Performance Period. As soon as practicable after the close of each Performance Period, the Committee shall
review and certify in writing whether, and to what extent, the Performance Goal(s) for the Performance Period have been achieved
and, if so, determine and certify in writing the amount of the Performance Award to be paid to the Participant and, in so doing,
may use negative discretion to decrease, but not increase, the amount of the Award otherwise payable to the Participant based upon
such performance.

 

(b) Definitions.

 

(i) “Performance Formula”
means, for a Performance Period, one or more objective formulas or standards established by the Committee for purposes of determining
whether or the extent to which an Award has been earned based on the level of performance attained or to be attained with respect
to one or more Performance Goal(s). Performance Formulae may vary from Performance Period to Performance Period and from Participant
to Participant and may be established on a stand-alone basis, in tandem or in the alternative.

 

(ii) “Performance Goals”
means, for a Performance Period, one or more goals established in writing by the Committee for the Performance Period based upon
one or more Performance Measures. Unless otherwise determined by the Committee, the achievement of each Performance Goal shall
be determined, to the extent applicable, in accordance with generally accepted accounting principles as consistently applied by
the Company (or such other standard applied by the Committee).

 

(iii) “Performance Measure”
means one or more of the following selected by the Committee to measure Company, Affiliate, and/or business unit performance for
a Performance Period, whether in absolute or relative terms (including, without limitation, terms relative to a peer group or index):
net earnings (either before or after one or more of the following: (A) interest, (B) taxes, (C) depreciation and
(D) amortization); gross or net sales or revenue; net income (either before or after taxes); adjusted net income; operating
earnings or profit; cash flow (including, but not limited to, operating cash flow and free cash flow); return on assets; return
on capital or return on capital or invested capital; return on stockholders’ equity; total stockholder return; return on
sales; gross or net profit or operating margin; operating or other costs and expenses; improvements in expense levels; working
capital; earnings per share or adjusted earnings per share; price per Share; regulatory body approval for commercialization of
a product; implementation or completion of critical projects; market share; economic value; comparisons with various stock market
indices; stockholders’ equity; market recognition (including but not limited to awards and analyst ratings); financial ratios;
net promoter score; customer satisfaction; and strategic team goals. Performance Measures may vary from Performance Period to Performance
Period, and from Participant to Participant, and may be established on a stand-alone basis, in tandem or in the alternative.

 

    9 

     

    

 

The Committee may, in its sole discretion, provide that one
or more objectively determinable adjustments shall be made to one or more of the Performance Goals. Such adjustments may include
one or more of the following: items related to a change in accounting principle; items relating to financing activities; expenses
for restructuring or productivity initiatives; other non-operating items; items related to acquisitions; items attributable to
the business operations of any entity acquired by the Company during the Performance Period; items related to the disposal of a
business or segment of a business; items related to discontinued operations that do not qualify as a segment of a business under
generally accepted accounting principles as consistently applied by the Company (or such other standard applied by the Committee);
items attributable to any stock dividend, stock split, combination or exchange of stock occurring during the Performance Period;
any other items of significant income or expense which are determined to be appropriate adjustments; items relating to unusual
or extraordinary corporate transactions, events or developments, items related to amortization of acquired intangible assets; items
that are outside the scope of the Company’s core, on-going business activities; items related to acquired in-process research
and development; items relating to changes in tax laws; items relating to major licensing or partnership arrangements; items relating
to asset impairment charges; items relating to gains or losses for litigation, arbitration and contractual settlements; or items
relating to any other unusual or nonrecurring events or changes in Applicable Law, accounting principles or business conditions.

 

(iv) “Performance Period”
means one or more periods of time (of not less than one fiscal year of the Company), as the Committee may designate, over which
the attainment of one or more Performance Goal(s) will be measured for the purpose of determining a Participant’s rights
in respect of an Award.

 

10. Taxes

 

(a) General. As a condition to the
issuance or distribution of Shares pursuant to the Plan, the Participant (or in the case of the Participant’s death, the
person who succeeds to the Participant’s rights) shall make such arrangements as the Company may require for the satisfaction
of any applicable federal, state, local or foreign withholding tax obligations that may arise in connection with the Award and
the issuance of Shares. The Company shall not be required to issue any Shares until such obligations are satisfied. If the Committee
allows the withholding or surrender of Shares to satisfy a Participant’s tax withholding obligations, the Committee shall
not allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes.

 

(b) Default Rule for Employees. In
the absence of any other arrangement, an Employee shall be deemed to have directed the Company to withhold or collect, from his
or her cash compensation, an amount sufficient to satisfy such tax obligations from the next payroll payment otherwise payable
after the date of the exercise of an Award.

 

(c) Surrender of Shares. If permitted
by the Committee, in its discretion, a Participant may satisfy the minimum applicable tax withholding and employment tax obligations
associated with an Award by surrendering Shares to the Company (including Shares that would otherwise be issued pursuant to the
Award) that have a Fair Market Value, determined as of the applicable date, that the amount of tax to be withheld is to be determined
under the Applicable Law equal to the amount required to be withheld. In the case of Shares previously acquired from the Company
that are surrendered under this Section 10, such Shares must have been owned by the Participant for more than six months on
the date of surrender (or such longer period of time the Company may in its discretion require).

 

    10 

     

    

 

(d) Income Taxes and Deferred Compensation.
Participants are solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with
Awards (including any taxes arising under Section 409A of the Code), and the Company shall not have any obligation to indemnify
or otherwise hold any Participant harmless from any or all of such taxes. The Committee shall have the discretion to organize any
deferral program, to require deferral election forms, and to grant or to unilaterally modify any Award in a manner (i) that
conforms with the requirements of Section 409A of the Code with respect to compensation that is deferred and that vests after
December 31, 2004, (ii) that voids any Participant election to the extent it would violate Section 409A of the Code,
and (iii) for any distribution election that would violate Section 409A of the Code, to make distributions pursuant to
the Award at the earliest to occur of a distribution event that is allowable under Section 409A of the Code or any distribution
event that is both allowable under Section 409A of the Code and is elected by the Participant, subject to any valid second
election to defer, provided that the Committee permits second elections to defer in accordance with Section 409A(a)(4)(C)
of the Code. The Committee shall have the sole discretion to interpret the requirements of the Code, including Section 409A,
for purposes of the Plan and all Awards.

 

11. Non-Transferability of Awards

 

(a) General. Except as set forth in
this Section 11, or as otherwise approved by the Committee, Awards may not be sold, pledged, assigned, hypothecated, transferred
or disposed of in any manner other than by will or by the laws of descent or distribution, or in the case of an option other than
an ISO, pursuant to a domestic relations order as defined under Rule 16a-12 under the Exchange Act. The designation of a beneficiary
by a Participant will not constitute a transfer. An Award may be exercised, during the lifetime of the holder of an Award, only
by such holder, the duly-authorized legal representative of a Participant who is Disabled, a transferee permitted by this Section 11,
or except as would cause an ISO to lose such status, by a bankruptcy trustee.

 

(b) Limited Transferability Rights.
Notwithstanding anything else in this Section 11, the Committee may in its discretion provide in an Award Agreement that an
Award relating to non-ISOs, SARs settled only in Shares, Restricted Shares, or Performance Shares may be transferred, on such terms
and conditions as the Committee deems appropriate, either (i) by instrument to the Participant’s “Immediate
Family” (as defined below), (ii) by instrument to an inter vivos or testamentary trust (or other entity) in
which the Award is to be passed to the Participant’s designated beneficiaries, or (iii) by gift to charitable institutions.
Each share of restricted stock shall be non-transferable until such share becomes non-forfeitable. Any transferee of the Participant’s
rights shall succeed and be subject to all of the terms of the applicable Award Agreement and the Plan (other than the ability
to further transfer the award). Such transferee shall execute any and all documents requested by the Committee, including, without
limitation, documents to (i) confirm the status of the transferee as a permitted transferee, (ii) satisfy any requirements
for an exemption for the transfer under Applicable Law and (iii) evidence the transfer. “Immediate Family”
means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include adoptive relationships.

 

12. Adjustments Upon Changes in Capitalization,
Dissolution, Liquidation or a Change in Control

 

(a) Changes in Capitalization. The
Committee shall equitably adjust the number of Shares covered by each outstanding Award, the maximum number of Shares with respect
to one or more Awards that may be granted to persons during any calendar year as set out in Section 5(c) and the number of Shares
that have been authorized for issuance under the Plan but as to which no Awards have yet been granted or that have been returned
to the Plan upon cancellation, forfeiture, or expiration of an Award, as well as the price per Share covered by each such outstanding
Award, to reflect any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock
dividend, combination, recapitalization or reclassification of the Shares, or any other increase or decrease in the number of issued
Shares effected without receipt of consideration by the Company, in each case effected at any time after this Plan is approved
by the Board. In the event of any such transaction or event, the Committee may provide in substitution for any or all outstanding
Awards under the Plan such alternative consideration (including securities of any surviving entity) as it may in good faith determine
to be equitable under the circumstances and may require in connection therewith the surrender of all Awards so replaced. In any
case, such substitution of securities shall not require the consent of any person who is granted Awards pursuant to the Plan. Except
as expressly provided herein, or in an Award Agreement, if the Company issues for consideration shares of stock of any class or
securities convertible into shares of stock of any class, the issuance shall not affect, and no adjustment by reason thereof shall
be required to be made with respect to the number or price of Shares subject to any Award.

 

    11 

     

    

 

(b) Dissolution or Liquidation. In
the event of the dissolution or liquidation of the Company other than as part of a Change in Control, each Award will terminate
immediately prior to the consummation of such action, subject to the ability of the Committee to exercise any discretion authorized
in the case of a Change in Control.

 

(c) Change in Control. In the event
of a Change in Control, the Committee may, in its sole and absolute discretion and authority, without obtaining the approval or
consent of the Company’s stockholders or any Participant with respect to his or her outstanding Awards, take one or more
of the following actions:

 

(i) cause or otherwise provide that each outstanding
Award shall be assumed through the continuation of the Plan and the assumption of the agreements covering the Award or substituted
for a substantially similar award issued by a successor entity or a parent or subsidiary of such successor entity (the “Successor
Entity”), in each case with appropriate adjustments as to the number and kind of shares subject to the Award, the
exercise price of such Award and such other terms deemed appropriate, as applicable;

 

(ii) arrange or otherwise provide for the
payment of cash or other consideration to Participants in exchange for the satisfaction and cancellation of outstanding Awards;

 

(iii) accelerate, in part or in full, to a
date prior to the effective time of such Change in Control as the Committee shall determine (or, if the Committee shall not determine
such a date, to the date that is four days prior to the effective time of the Change in Control) the vesting of Awards so that
Awards shall vest (and, to the extent applicable, become exercisable) as to the Shares that otherwise would have been unvested
and provide that repurchase rights of the Company with respect to Shares issued upon exercise of an Award shall lapse as to the
Shares subject to such repurchase right; or

 

(iv) make such other modifications, adjustments
or amendments to outstanding Awards or this Plan as the Committee deems necessary or appropriate, subject, however, to the terms
of Section 14(a).

 

Notwithstanding the above, (i) to the extent that an Award
is not exercised prior to consummation of a transaction, including a Change in Control, in which the Award is not being assumed
or substituted for in such transaction, such Award shall automatically terminate as of immediately prior to the consummation of
such transaction; and (ii) in the event a Participant holding an Award assumed or substituted by the Successor Entity in a
Change in Control is Involuntarily Terminated by the Successor Entity in connection with, or within 12 months following
consummation of, the Change in Control, then any assumed or substituted Award held by the terminated Participant at the time of
termination shall accelerate and become fully vested (and exercisable in full in the case of Options and SARs), and any repurchase
right applicable to any Shares shall lapse in full, unless an Award Agreement provides for a more restrictive acceleration or vesting
schedule or more restrictive limitations on the lapse of repurchase rights or otherwise places additional restrictions, limitations
and conditions on an Award. The acceleration of vesting and lapse of repurchase rights provided for in the previous sentence shall
occur immediately prior to the effective time of the Participant’s termination, unless an Award Agreement provides otherwise.

 

(d) Certain Distributions. In the event
of any distribution to the Company’s stockholders of securities of any other entity or other assets (other than dividends
payable in cash or stock of the Company) without receipt of consideration by the Company, the Committee may, in its discretion,
appropriately adjust the price per Share covered by each outstanding Award to reflect the effect of such distribution.

 

(e) Limitation on Adjustments. No adjustment
or action described in this Section 12, or in any other provision of the Plan, shall be authorized to the extent that such
adjustment or action would cause the Plan to violate Section 422(b)(1) of the Code. Furthermore, no such adjustment or action
shall be authorized to the extent such adjustment or action would result in short-swing profits liability under Section 16
or violate the exemptive conditions of Rule 16b-3 unless the Committee determines that the Award is not to comply with such
exemptive conditions. No action shall be taken under this Section 12 which shall cause an Award to fail to be exempt from
or comply with Section 409A of the Code or the regulations thereunder.

 

    12 

     

    

 

13. Time of Granting Awards.

 

The date of grant (“Grant Date”) of
an Award shall be the date on which the Committee makes the determination granting such Award or such other date as is determined
by the Committee and set forth in the Award Agreement, provided that in the case of an ISO, the Grant Date shall be the
later of the date on which the Committee makes the determination granting such ISO or the date of commencement of the Participant’s
employment relationship with the Company.

 

14. Modification of Awards and Substitution
of Options.

 

(a) Modification, Extension, and Renewal
of Awards. Within the limitations of the Plan, the Committee may modify an Award to accelerate the rate at which an Option
or SAR may be exercised (including without limitation permitting an Option or SAR to be exercised in full without regard to the
installment or vesting provisions of the applicable Award Agreement or whether the Option or SAR is at the time exercisable, to
the extent it has not previously been exercised), to accelerate the vesting of any Award only in the event of a Change in Control,
to extend or renew outstanding Awards or to accept the cancellation of outstanding Awards to the extent not previously exercised.
However, the Committee may not cancel an outstanding option that is underwater for the purpose of reissuing the option to the participant
at a lower exercise price or granting a replacement award of a different type. Notwithstanding the foregoing provision, no modification
of an outstanding Award shall materially and adversely affect such Participant’s rights thereunder, unless either the Participant
provides written consent or there is an express Plan provision permitting the Committee to act unilaterally to make the modification.
Neither the Company nor the Committee shall, without prior stockholder approval, allow for a cash buyout of underwater options
or SARs.

 

(b) Substitution of Options. Notwithstanding
any inconsistent provisions or limits under the Plan, in the event the Company or an Affiliate acquires (whether by purchase, merger
or otherwise) all or substantially all of outstanding capital stock or assets of another corporation or in the event of any reorganization
or other transaction qualifying under Section 424 of the Code, the Committee may, in accordance with the provisions of that
Section, substitute Options for options under the plan of the acquired company provided (i) the excess of the aggregate fair
market value of the shares subject to an option immediately after the substitution over the aggregate option price of such shares
is not more than the similar excess immediately before such substitution and (ii) the new option does not give persons additional
benefits, including any extension of the exercise period.

 

15. Term of Plan.

 

The Plan shall continue in effect for a term of ten years from
the date this Plan is first adopted by the Board, unless the Plan is sooner terminated under Section 16.

 

16. Amendment and Termination of the
Plan.

 

(a) Authority to Amend or Terminate.
Subject to Applicable Laws, the Board may, from time to time, amend, alter, suspend, discontinue, or terminate the Plan.

 

(b) Effect of Amendment or Termination.
No amendment, suspension, or termination of the Plan shall materially and adversely affect Awards already granted unless either
it relates to an adjustment pursuant to Section 12, or it is otherwise mutually agreed between the Participant and the Committee,
which agreement must be in writing and signed by the Participant and the Company. Notwithstanding the foregoing, the Committee
may amend the Plan to eliminate provisions which are no longer necessary as a result of changes in tax or securities laws or regulations,
or in the interpretation thereof.

 

17. Conditions Upon Issuance of Shares.

 

Notwithstanding any other provision of the Plan or any agreement
entered into by the Company pursuant to the Plan, the Company shall not be obligated, and shall have no liability for failure,
to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with Applicable Law, with such compliance
determined by the Company in consultation with its legal counsel.

 

    13 

     

    

 

18. Reservation of Shares.

 

The Company, during the term of this Plan, will at all times
reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. Neither the Company
nor the Committee shall, without stockholder approval, allow for a repricing within the meaning of the federal securities laws
applicable to proxy statement disclosures.

 

19. Effective Date and Contingencies.

 

The Plan shall become effective on the date it is adopted by
the Board or the Committee; provided that this Plan shall be submitted to the Company’s stockholders for approval.
If this Plan is not approved by the Company’s stockholders in accordance with Applicable Laws (as determined by the Committee
in its sole discretion) within one year from the date of approval by the Board, this Plan and any Awards shall be null, void, and
of no force and effect. Awards granted under this Plan before approval of this Plan by the stockholders shall be granted subject
to such approval, and no Shares shall be distributed before such approval.

 

20. Controlling Law.

 

This Plan shall be governed by the laws of the State of Delaware
(without regard to conflicts of laws principles), to the extent not preempted by United States federal law. If any provision of
this Plan is held by a court of competent jurisdiction to be invalid and unenforceable, the remaining provisions shall continue
to be fully effective.

 

21. Laws and Regulations.

 

(a) U.S. Securities Laws. This
Plan, the grant of Awards, and the exercise of Options and SARs under this Plan, and the obligation of the Company to sell or deliver
any of its securities (including, without limitation, Options, Restricted Shares, Restricted Share Units, and Shares) under this
Plan shall be subject to all Applicable Law. In the event that the Shares are not registered under the Securities Act of 1933,
as amended (the “Act”), or any applicable state securities laws prior to the delivery of such Shares,
the Company may require, as a condition to the issuance thereof, that the persons to whom Shares are to be issued represent and
warrant in writing to the Company that such Shares are being acquired by him or her for investment for his or her own account and
not with a view to, for resale in connection with, or with an intent of participating directly or indirectly in, any distribution
of such Shares within the meaning of the Act, and a legend to that effect may be placed on the certificates representing the Shares.

 

(b) Other Jurisdictions. To facilitate
the making of any grant of an Award under this Plan, the Committee may provide for such special terms for Awards to Participants
who are foreign nationals or who are employed by the Company or any Affiliate outside of the United States of America as the Committee
may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. The Company may adopt rules
and procedures relating to the operation and administration of this Plan to accommodate the specific requirements of local laws
and procedures of particular countries. Without limiting the foregoing, the Company is specifically authorized to adopt rules and
procedures regarding the conversion of local currency, taxes, withholding procedures and handling of stock certificates which vary
with the customs and requirements of particular countries. The Company may adopt sub-plans and establish escrow accounts and trusts
as may be appropriate or applicable to particular locations and countries.

 

(c) Data Privacy. As a condition of
receipt of any Award, each Participant explicitly and unambiguously consents to the collection, use, and transfer, in electronic
or other form, of personal data as described in this Section by and among, as applicable, the Company and its Affiliates for
the exclusive purpose of implementing, administering, and managing this Plan and Awards and the Participant’s participation
in this Plan. In furtherance of such implementation, administration, and management, the Company and its Affiliates may hold certain
personal information about a Participant with respect to one or more Awards under the Plan, including, but not limited to, the
Participant’s name, home address, telephone number, date of birth, social security or insurance number or other identification
number, salary, nationality, job title(s), information regarding any securities of the Company or any of its Affiliates, and details
of all Awards (the “Data”). In addition to transferring the Data amongst themselves as necessary for
the purpose of implementation, administration, and management of this Plan and Awards and the Participant’s participation
in this Plan, the Company and its Affiliates each may transfer the Data to any third parties assisting the Company in the implementation,
administration, and management of this Plan and Awards and the Participant’s participation in this Plan. Recipients of the
Data may be located in the Participant’s country or elsewhere, and the Participant’s country and any given recipient’s
country may have different data privacy laws and protections. By accepting an Award, each Participant authorizes such recipients
to receive, possess, use, retain, and transfer the Data, in electronic or other form, for the purposes of assisting the Company
in the implementation, administration, and management of this Plan and Awards and the Participant’s participation in this
Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Company or
the Participant may elect to deposit any Shares. A Participant may, at any time, view the Data held by the Company with respect
to such Participant, request additional information about the storage and processing of the Data with respect to such Participant,
recommend any necessary corrections to the Data with respect to the Participant, or refuse or withdraw the consents herein in writing,
in any case without cost, by contacting such Participant’s local human resources representative. The Company may cancel the
Participant’s eligibility to participate in this Plan, and in the Committee’s discretion, the Participant may forfeit
any outstanding Awards if the Participant refuses or withdraws the consents described herein. For more information on the consequences
of refusal to consent or withdrawal of consent, Participants may contact their local human resources representative.

 

    14 

     

    

 

22. No Stockholder Rights. Neither
a Participant nor any transferee of a Participant shall have any rights as a stockholder of the Company with respect to any Shares
underlying any Award until the date of issuance of a share certificate to a Participant or a transferee of a Participant for such
Shares in accordance with the Company’s governing instruments and Applicable Law. Prior to the issuance of Shares pursuant
to an Award, a Participant shall not have the right to vote or to receive dividends or any other rights as a stockholder with respect
to the Shares underlying the Award, notwithstanding its exercise in the case of Options and SARs. No adjustment will be made for
a dividend or other right that is determined based on a record date prior to the date the stock certificate is issued, except as
otherwise specifically provided for in this Plan.

 

23. No Employment Rights. The
Plan shall not confer upon any Participant any right to continue an employment, service or consulting relationship with the Company,
nor shall it affect in any way a Participant’s right or the Company’s right to terminate the Participant’s employment,
service, or consulting relationship at any time, with or without Cause.

 

24. References. All references
herein to sections and appendices shall be deemed to be references to sections and appendices, respectively, of this Plan unless
the context shall otherwise require. The words “include,” “includes” and “including” shall
be deemed to be followed by the phrase “without limitation.” Unless otherwise expressly provided herein, any agreement,
instrument or statute defined or referred to herein or in any agreement or instrument defined or referred to herein means such
agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or
instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes, and references
to all attachments thereto and instruments incorporated therein.

 

25. Termination, Rescission and Recapture
of Awards. Notwithstanding any other provision of the Plan, but only to the extent specifically provided in any Award Agreement,
this Section shall only apply to a Participant who is, on the date of an Award, an Employee of the Company or its Affiliates, and
shall automatically cease to apply to any Participant from and after his or her termination of Continuous Service after a Change
in Control.

 

(a) Each Award under the Plan is intended
to align the Participant’s long-term interest with those of the Company. If the Participant engages in certain activities
discussed below, either during employment or after employment with the Company, the Participant is acting contrary to the long-term
interests of the Company. Accordingly, except as otherwise expressly provided in the Award Agreement, the Company may terminate
any outstanding, unexercised, unexpired, unpaid, or deferred Awards (“Termination”), rescind any exercise,
payment or delivery pursuant to the Award (“Rescission”), or recapture any Shares (whether restricted
or unrestricted) or proceeds from the Participant’s sale of Shares issued pursuant to the Award (“Recapture”),
if the Participant does not comply with the conditions of subsections (b) and (c) hereof (collectively, the “Conditions”).

 

    15 

     

    

 

(b) A Participant shall not, without the Company’s
prior written authorization, disclose to anyone outside the Company, or use in other than the Company’s business, any proprietary
or confidential information or material, as those or other similar terms are used in any applicable patent, confidentiality, inventions,
secrecy, or other agreement between the Participant and the Company with regard to any such proprietary or confidential information
or material.

 

(c) Pursuant to any agreement between the
Participant and the Company with regard to intellectual property (including but not limited to patents, trademarks, copyrights,
trade secrets, inventions, developments, improvements, proprietary information, confidential business and personnel information),
a Participant shall promptly disclose and assign to the Company or its designee all right, title, and interest in such intellectual
property, and shall take all reasonable steps necessary to enable the Company to secure all right, title and interest in such intellectual
property in the United States and in any foreign country.

 

(d) Upon exercise, payment, or delivery of
cash or Shares pursuant to an Award, the Participant shall certify on a form acceptable to the Company that he or she is in compliance
with the terms and conditions of the Plan and, if a severance of Continuous Service has occurred for any reason, shall state the
name and address of the Participant’s then-current employer or any entity for which the Participant performs business services
and the Participant’s title, and shall identify any organization or business in which the Participant owns a greater-than-five-percent
equity interest.

 

(e) To the extent permitted by Applicable
Law, if the Company determines, in its sole and absolute discretion, that (i) a Participant has violated any of the Conditions
or (ii) during his or her Continuous Service, or within one (1) year after Participant’s termination for any reason,
a Participant (a) has rendered services to or otherwise directly or indirectly engaged in or assisted, any organization or
business that, in the judgment of the Company in its sole and absolute discretion, is or is working to become competitive with
the Company; (b) has solicited any non-administrative employee of the Company to terminate employment with the Company; or
(c) has engaged in activities which are materially prejudicial to or in conflict with the interests of the Company, including
any breaches of fiduciary duty or the duty of loyalty, then the Company may, in its sole and absolute discretion, impose a Termination,
Rescission, and/or Recapture with respect to any or all of the Participant’s relevant Awards, Shares, and the proceeds thereof.

 

(f) Within ten days after receiving notice
from the Company of any such activity, the Participant shall deliver to the Company the Shares acquired pursuant to the Award,
or, if Participant has sold the Shares, the gain realized, or payment received as a result of the rescinded exercise, payment,
or delivery; provided that if the Participant returns Shares that the Participant purchased pursuant to the exercise of
an Option (or the gains realized from the sale of such Shares), the Company shall promptly refund the exercise price, without earnings,
that the Participant paid for the Shares. Any payment by the Participant to the Company pursuant to this Section 25 shall
be made either in cash or by returning to the Company the number of Shares that the Participant received in connection with the
rescinded exercise, payment, or delivery. It shall not be a basis for Termination, Rescission or Recapture if, after termination
of a Participant’s Continuous Service, the Participant purchases, as an investment or otherwise, stock or other securities
of such an organization or business, so long as (i) such stock or other securities are listed upon a recognized securities
exchange or traded over-the-counter, and (ii) such investment does not represent more than a five percent (5%) equity
interest in the organization or business.

 

(g) Notwithstanding the foregoing provisions
of this Section, the Company has sole and absolute discretion not to require Termination, Rescission and/or Recapture, and its
determination not to require Termination, Rescission and/or Recapture with respect to any particular act by a particular Participant
or Award shall not in any way reduce or eliminate the Company’s authority to require Termination, Rescission and/or Recapture
with respect to any other act or Participant or Award. Nothing in this Section shall be construed to impose obligations on the
Participant to refrain from engaging in lawful competition with the Company after the termination of employment that does not violate
subsections (b) or (c) of this Section, other than any obligations that are part of any separate agreement between the
Company and the Participant or that arise under Applicable Law.

 

    16 

     

    

 

(h) All administrative and discretionary authority
given to the Company under this Section shall be exercised by the most senior human resources executive of the Company or such
other person or committee (including without limitation the Committee) as the Committee may designate from time to time.

 

(i) Notwithstanding any provision of this
Section, if any provision of this Section is determined to be unenforceable or invalid under any Applicable Law, such provision
will be applied to the maximum extent permitted by Applicable Law, and shall automatically be deemed amended in a manner consistent
with its objectives to the extent necessary to conform to any limitations required under Applicable Law. Furthermore, if any provision
of this Section is illegal under any Applicable Law, such provision shall be null and void to the extent necessary to comply with
Applicable Law.

 

(j) All Awards (including any proceeds, gains
or other economic benefit actually or constructively received by the Participant upon any receipt or exercise of any Award or upon
the receipt or resale of any Shares underlying the Award) shall be subject to the provisions of any claw-back policy implemented
by the Company, including, without limitation, any claw-back policy adopted to comply with the requirements of Applicable Law,
including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated
thereunder, to the extent set forth in such claw-back policy and/or in the applicable Award Agreement.

 

26. Recoupment of Awards. Unless
otherwise specifically provided in an Award Agreement, and to the extent permitted by Applicable Law, the Committee may in its
sole and absolute discretion, without obtaining the approval or consent of the Company’s stockholders or of any Participant,
require that any Participant reimburse the Company for all or any portion of any Awards granted to him or her under this Plan (“Reimbursement”),
or the Committee may require the Termination or Rescission of, or the Recapture associated with, any Award, if and to the extent:

 

(a) the granting, vesting, or payment of such
Award (or portion thereof) was predicated upon the achievement of certain financial results or other performance criteria;

 

(b) in the Committee’s view, the Participant
either benefited from a calculation that later proves to be materially inaccurate, or engaged in one or more material acts of fraud
or misconduct that caused or partially caused the need for a financial restatement by the Company or any material Affiliate thereof;
and

 

(c) a lower granting, vesting or payment of
such Award would have occurred based upon the conduct described in clause (b) of this Section 26.

 

In each instance, the Committee may, to the extent practicable
and allowable under Applicable Laws, require Reimbursement, Termination or Rescission of, or Recapture relating to, any such Award
granted to a Participant; provided that the Company will not seek Reimbursement, Termination or Rescission of, or Recapture
relating to, any such Awards that were paid or vested more than three years prior to the first date of the applicable restatement
period.

 

[APPENDIX A FOLLOWS]

 

    17 

     

    

 

 

SORRENTO THERAPEUTICS, INC.

2019 STOCK INCENTIVE PLAN

 

Appendix A: Definitions

 

 

As used in the Plan, the following definitions shall apply:

 

“Affiliate” means, with respect to
any Person, any other Person that directly or indirectly controls or is controlled by or under common control with such Person.
For the purposes of this definition, “control,” when used with respect to any Person, means the possession,
direct or indirect, of the power to direct or cause the direction of the management and policies of such Person or the power to
elect directors, whether through the ownership of voting securities, by contract or otherwise; and the terms “affiliated,”
“controlling” and “controlled” have meanings correlative to the foregoing.

 

“Applicable Law” means the legal requirements
relating to the administration of options and share-based plans under applicable U.S. federal and state laws, the Code, any
applicable stock exchange or automated quotation system rules or regulations, and the applicable laws of any other country or jurisdiction
where Awards are granted, as such laws, rules, regulations and requirements shall be in place from time to time.

 

“Award” means any award made pursuant
to the Plan, including awards made in the form of an Option, an SAR, a Restricted Share, a Restricted Share Unit, an Unrestricted
Share, a Dividend Equivalent, and a Performance Award, or any combination thereof, whether alternative or cumulative, authorized
by and granted under this Plan.

 

“Award Agreement” means any written
document setting forth the terms of an Award that has been authorized by the Committee. The Committee shall determine the form
or forms of documents to be used, and may change them from time to time for any reason.

 

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

 

“Cause” for termination of a Participant’s
Continuous Service will have the meaning set forth in any unexpired employment, consulting or service agreement between the Company
and the Participant. In the absence of such an agreement, “Cause” will exist if the Participant is terminated
from employment or other service with the Company or an Affiliate for any of the following reasons: (i) the Participant’s
failure to substantially perform his or her duties and responsibilities to the Company or violation of a material Company policy;
(ii) the Participant’s commission of any act or acts of fraud, embezzlement, dishonesty, or other misconduct; (iii) the
Participant’s unauthorized use or disclosure of any proprietary information or trade secrets of the Company or any other
party to whom the Participant owes an obligation of nondisclosure as a result of his or her relationship with the Company; or (iv) the
Participant’s material breach of any of his or her obligations under any written agreement or covenant with the Company.

 

The Committee shall in its discretion determine whether or not
a Participant is being terminated for Cause. The Committee’s determination shall, unless arbitrary and capricious, be final
and binding on the Participant, the Company, and all other affected persons. The foregoing definition does not in any way limit
the Company’s ability to terminate a Participant’s employment, consulting or service relationship at any time, and
the term “Company” will be interpreted herein to include any Affiliate or successor thereto, if appropriate.

 

“Change in Control” shall mean the
occurrence during the term of the Plan of any of the following events, subject however to the Committee’s determination (to
the extent required to conform with Section 409A of the Code) that any occurrence listed below is a permissible distribution
event within the meaning of Section 409A of the Code (it being the intention of the Company to set forth, interpret and apply
the following provisions in a manner conforming with Section 409A insofar as applicable): (i) the acquisition, directly
or indirectly, by any person or group (within the meaning of Section 13(d)(3) of the Exchange Act of the beneficial ownership
of securities of the Company possessing more than fifty percent (50%) of the combined voting power of all outstanding securities
of the Company; (ii) a merger or consolidation in which the Company is not the surviving entity, except for a transaction
in which the holders of the outstanding voting securities of the Company immediately prior to such merger or consolidation hold,
in the aggregate, securities possessing more than fifty percent (50%) of the total combined voting power of all outstanding
voting securities of the surviving entity immediately after such merger or consolidation; (iii) the sale, transfer or other
disposition (in one or more transactions or series of related transactions) of all or substantially all of the assets of the Company;
(iv) a complete liquidation or dissolution of the Company; or (v) any reverse merger in which the Company is the surviving
entity but in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding voting securities are transferred to or acquired by one or more Persons different from the Persons (or their Affiliates)
holding those securities immediately prior to such merger.

 

     

     

    

 

Notwithstanding the foregoing, a “Change in Control”
shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately
following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions
have substantially the same proportionate ownership in an entity which owns all or substantially all of the former assets or capital
stock of the Company immediately following such transaction or series of transactions.

 

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

 

“Committee” means one or more committees
or subcommittees of the Board appointed by the Board to administer the Plan in accordance with Section 4. With respect to
any decision involving an Award intended to satisfy the requirements of Section 162(m) of the Code, the Committee shall consist
of two or more Directors of the Company who are “outside directors” within the meaning of Section 162(m) of the
Code. With respect to any decision relating to a Reporting Person, the Committee shall consist of two or more Directors who are
disinterested within the meaning of Rule 16b-3.

 

“Company” means Sorrento Therapeutics,
Inc., a Delaware corporation; provided, however, that in the event the Company reincorporates to another jurisdiction,
all references to the term “Company” shall refer to the Company in such new jurisdiction.

 

“Consultant” means any person, including
an advisor, who is engaged by the Company or any Affiliate to render services and is compensated for such services.

 

“Continuous Service” means a Participant’s
most recent period of service, in the absence of any interruption or termination of service, as an Employee, Director, or Consultant.
Continuous Service shall not be considered interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any
other leave of absence approved by the Committee, provided that such leave is for a period of not more than 90 days,
unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant
to Company policy adopted from time to time; (iv) changes in status from Director to advisory director or emeritus status;
or (iv) in the case of transfers between locations of the Company or between the Company, its Affiliates or their respective
successors. Changes in status between service as an Employee, Director, and a Consultant will not, by itself, constitute an interruption
of Continuous Service.

 

“Director” means a member of the Board,
or a member of the board of directors of an Affiliate.

 

“Disabled” or “Disability”
means a condition under which a Participant:

 

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

 

(b) has, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, received income replacement benefits for a period of not less than 3 months under an accident
or health plan covering employees of the Company.

 

    A-2 

     

    

 

“Dividend Equivalent” means a right
to receive the equivalent value (in cash or Shares) of dividends paid on Shares, awarded under Section 8.

 

“Eligible Person” means any Consultant,
Director or Employee and includes non-Employees to whom an offer of employment has been extended by the Company or an Affiliate.

 

“Employee” means any person whom the
Company or any Affiliate classifies as an employee (including an officer) for employment tax purposes, whether or not that classification
is correct. The payment by the Company of a director’s fee to a Director shall not be sufficient to constitute “employment”
of such Director by the Company.

 

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

 

“Fair Market Value” means, unless
otherwise determined by the Board on the committee, as of any date (the “Determination Date”): (i) the
closing price of a Share on the New York Stock Exchange, the American Stock Exchange or The Nasdaq Stock Market LLC (as applicable,
the “Exchange”), on the Determination Date, or, if shares were listed, but not traded, on such Exchange
on the Determination Date, then on the nearest preceding trading day during which a sale occurred; or (ii) if such stock is
not quoted on an Exchange, but is otherwise traded on the Over-the-Counter Bulletin BoardTM or the Pink Sheets®,
the mean between the representative bid and asked prices on the Determination Date or the last preceding date for which such information
is available; or (iii) if subsections (i) and (ii) do not apply, the fair market value established in good faith
by the Board.

 

“Incentive Share Option” or “ISO”
hereinafter means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code,
as designated in the applicable Award Agreement.

 

“Involuntarily Terminated” means a
Participant’s Continuous Service is terminated under the following circumstances occurring in connection with, or within 12 months
following consummation of, a Change in Control: (i) termination without Cause by the Company or an Affiliate or successor
thereto, as appropriate; or (ii) voluntary termination by the Participant within 60 days following (A) a material
reduction in the Participant’s job responsibilities, provided that neither a mere change in title alone nor reassignment
to a substantially similar position shall constitute a material reduction in job responsibilities; (B) an involuntary relocation
of the Participant’s work site to a facility or location more than 50 miles from the Participant’s principal work
site as of immediately prior to the Change in Control; or (C) a material reduction in Participant’s total compensation
other than as part of a reduction by the same percentage amount in the compensation of all other similarly-situated Employees,
Directors or Consultants.

 

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

 

“Non-ISO” means an Option not intended
to qualify as an ISO, as designated in the applicable Award Agreement.

 

“Option” means any stock option granted
pursuant to Section 6.

 

“Original Plan” shall have the meaning
set forth in Section 1.

 

“Participant” means any holder of
one or more Awards, or the Shares issuable or issued upon exercise of such Awards, under the Plan.

 

“Performance Awards” mean a cash bonus
award, stock bonus award, performance award or incentive award that is paid in cash, Shares or a combination of both, awarded under
Section 9.

 

“Performance Unit” means Awards granted
pursuant to Section 9(a) that are denominated in units of value, which may include, without limitation, the dollar value of
Shares, and that may be paid in cash, in Shares, or such combination of cash and Shares as the Committee in its sole discretion
shall determine.

 

    A-3 

     

    

 

“Person” means any natural person,
association, trust, business trust, cooperative, corporation, general partnership, joint venture, joint-stock company, limited
partnership, limited liability company, real estate investment trust, regulatory body, governmental agency or instrumentality,
unincorporated organization or organizational entity.

 

“Reporting Person” means an officer,
Director, or greater than ten percent stockholder of the Company within the meaning of Rule 16a-2 under the Exchange Act,
who is required to file reports pursuant to Rule 16a-3 under the Exchange Act.

 

“Rule 16b-3” means Rule 16b-3
promulgated under the Exchange Act, as amended from time to time, or any successor provision.

 

“SAR” or “Share Appreciation
Right” means Awards granted pursuant to Section 7.

 

“Share” means a share of common stock
of the Company, as adjusted in accordance with Section 12.

 

“Substitute Award” means an Award
granted under the Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company
or other entity in connection with a corporate transaction, such as a merger, combination, consolidation or acquisition of property
or stock; provided, however, that in no event shall the term “Substitute Award” be construed to refer
to an award made in connection with the cancellation and repricing of an Option or SAR.

 

“Ten Percent Holder” means a person
who owns stock representing more than 10% of the combined voting power of all classes of stock of the Company or any Affiliate.

 

    A-4Exhibit 10.3

 

Customs Synthesis Agreement

 

This contract agreement (“Agreement”) is executed by and between APREA (“Aprea”), Fogdevreten 2B, SE-17177 Stockholm, Sweden

 

And

 

SYNGENE International Private Limited (“SYNGENE”), Biocon Park, Plot Nos 2 & 3, Industrial Area, Bommasandra IV Phase, Jigani Link Road, Bangalore-560099, India,

 

Rectials

 

Whereas, APREA wishes to entrust SYNGENE to perform customs GMP Synthesis of APR-246 (Syngene internal reference APR-050A (Prima-I Met))

 

Whereas, SYNGENE owns facilities suitable for synthesis of APREA’s request for GMP synthesis of APR-246, and is willing to synthesize for APREA, according to APREA’s requirements of APR-246

 

Now, therefore, it is agreed as under.

 

A.                               Subject Matter of the Agreement:

 

Under the terms and conditions of this Agreement SYNGENE shall synthesize and ship to APREA [***] of APR-246 according to GMP (ICH Q7A).

 

B.                               Specific Duties of SYNGENE: 

 

In assuming responsibility for undertaking this Agreement,

 

(a)                       SYNGENE shall synthesize and deliver to APREA a total of [***] of APR-246. The delivery and payment schedule shall be as per the milestones set forth in Appendix 1 to this Agreement. Delivery shall be made in accordance with Incoterms DDP (Delivered Duty Paid) APREA:s premises in Solna.

 

(b)                       Together with the delivery of APR-246, SYNGENE will also supply APREA with a detailed report covering the following:

 

·                       Full list of all materials used in the production of APR-246.

·                       Specification and quality control procedures for all above mentioned raw materials.

 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

1

 

·                       Certificates of analysis of all batches used in the production of APR-246 for all above mentioned raw materials.

·                       The process as such described in steps. For every step SYNGENE shall provide a reaction scheme, a flow diagram/chart, exact quantities of incoming materials cited, the exact quantity of APR-246 obtained, along with data for theoretical, expected and realized yield. The process clearly described (quantities, time, temperature, pressure, pH and other values or ranges should be clearly stated).

 

(c)                        SYNGENE expressly warrants and undertakes that any and all quantities of APR-246 delivered by SYNGENE to APREA under this Agreement shall fully comply with specifications set forth in Appendix 2 attached hereto.

 

(d)                       SYNGENE shall allow inspection/audit of its production site, equipment, GMP conditions, laboratories, personnel etc. involved in production of APR-246 by APREA or representatives of APREA on prior notice basis and on mutually accepted date.

 

(e)                        In performing its duties under this Agreement, SYNGENE will perform the synthesis in a good workmanship manner and in compliance with all applicable Indian laws and industry standards.

 

C.                                    APREA’s Obligations:

 

APREA shall pay to SYNGENE a sum of [***] as full consideration for SYNGENE:s performance under this agreement.

 

All payments shall be based on the milestones as set forth in Appendix I. Payments shall be due within [***] of date of invoice. All payments made by APREA will be in United States Dollars.

 

The compensation stipulated by this paragraph is fixed and covers all costs SYNGENE may have in connection with this Agreement, including materials, taxes so SYNGENE shall have no further claims from APREA on any basis.

 

D.                                    Confidentiality:

 

With respect to any and all information relating to the process for synthesis of APR 050A as well as other information or data acquired by SYNGENE as a

 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

2

 

result of this Agreement or from performance of the synthesis to be rendered hereunder (“Confidential Information”), SYNGENE agrees that it will not

 

·      Disclose to any third party or use for any purpose other than for performing synthesis entrusted hereunder

·                       Permit any of its employees, consultants or representatives (e.g. non-employees used by SYNGENE to perform the synthesis or any part of it) to, use said Confidential Information other than the purposes of this Agreement,

·                       Permit any of its employees, consultants or representatives to, disclose any of said Confidential Information to a third party except as is required pursuant to the purposes of this Agreement provided APREA has approved it in writing.

·                       Allow any of its employees, consultants or representatives to, publish or submit for publication said Confidential Information without APREA’s prior approval.

 

SYNGENE’s obligation with regard to confidential information shall continue for a period of [***] years from the date such Confidential Information is disclosed or made available to SYNGENE.

 

The foregoing obligation shall not apply to information, (i) which is or lawfully becomes generally available to the public through no fault of SYNGENE; (i) which is lawfully acquired from third parties who have a right to disclose such information or which by mutual agreement is released from a confidential status. Furthermore, SYNGENE may make such disclosure of Confidential Information that is required to be disclosed by any law, rule, regulation, subpoena, order, decree, or decision or other process of law having jurisdiction over SYNGENE provided that SYNGENE shall notify APREA of the provisions of law requiring such disclosure and restricting the disclosure to the minimum extent possible.

 

SYNGENE shall, as far as possible, limit the number of its employees who should get access to confidential information provided in connection with the performance of the synthesis hereunder. In addition, SYNGENE shall ensure that the said employees must agree in writing to be bound by and comply with the Confidentiality provisions of this Section D, unless already bound by a written confidentiality agreement with terms similar to those contained herein.

 

Promptly upon successful fulfillment of this Agreement or upon request of APREA, as the case may be, SYNGENE shall return to APREA any and all written information relating to APR 050A. However, Legal Counsel of SYNGENE will be entitled to retain one copy of the Confidential Information for sole purpose of record.

 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

3

 

E.                                    Proprietary Rights:

 

For the avoidance of doubt, all intellectual property rights in relation to APR 050A and APREA’s product (which shall include, but not be limited to, any and all patents, patentable inventions, or applications for them and all know-how) whether arising in the results of the synthesis performed or otherwise pursuant to this Agreement shall belong exclusively to APREA without any limitations whatsoever and SYNGENE hereby assigns to APREA, without requesting any additional compensation, all rights, title and interest it may have in such intellectual property rights arising as a result of its performance of this Agreement.

 

F.                                     Term and Termination:

 

(a) This Agreement shall commence on the date first written above, and shall expire without prior notice when all obligations of the parties have been duly fulfilled.

 

(b) This Agreement may be terminated by APREA, by written notice to SYGENE, prior to the expiration of the term under the following conditions:

 

i)                                         If SYNGENE materially breaches any of the covenants and agreements under this Agreement,

 

ii)                                      If APREA determines that SYNGENE is substantially unable to perform assigned duties hereunder whether due to disability or incapacity, or any other reasons,

 

iii)                                   If an activity is not duly fulfilled at the date fixed in Appendix 1

 

(c) This Agreement may be terminated by SYNGENE, by written notice to APREA, prior to the expiration of the term under the following conditions:

 

i)                                         If Aprea fails to pay SYNGENE an amounts that are due and payable in accordance with Appendix 1.

 

A termination of this Agreement shall not affect the rights and liabilities of the parties incurred prior to termination. That means inter alia that SYNGENE shall be paid all amounts due and payable (in accordance with Appendix 1) prior to the termination date. Furthermore, a termination shall not affect any other remedy that the non-breaching party may have under this agreement or under law.

 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

4

 

G.            Communications:

 

All communications associated with this Agreement shall be by first class mail or courier, addressed to the respective parties as follows:

 

To SYNGENE

[***]

Biocon Park, Plot Nos 2 & 3,

Industrial Area, Bommasandra IV Phase, 

JIgani Link Road, Bangalore 56 00 99 

India.

Ph: [***]

Fax: [***]

 

To APREA:

Jacob Westman

Fogdevreten 2B

SE-171 77 Stockholm

Sweden

Ph: +46 8 50884502

Fax: +46 8 50884511

 

The above named persons are action on behalf of their respective organizations and may be changed on and as needed basis. A party shall be given prompt written notice of such changes.

 

H.            Assignment:

 

APREA may assign this Agreement in whole or in part without SYNGENE’s consent; provided that no such assignment will expand the scope of SYNGENE hereunder without the prior written consent of SYNGENE and the permitted assignees assumes in writing all obligations of its assignor under this Agreement. This Agreement may not be assigned or otherwise transferred by SYNGENE without the prior written consent of APREA except that either party may assign this Agreement, in whole or in part, to an affiliate of such party or to a successor (including the surviving Company in any consolidation, reorganization, merger or demerger) or assignee of all or substantially all of its business to which this Agreement pertains without the consent of the other party.

 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

5

 

SYNGENE and APREA are acting as independent parties and are not authorized to act for and on behalf of each other.

 

I.             Amendment:

 

No change or modification of the provisions of this Agreement shall be effective unless it is in writing and signed by a duly authorized officer of SYNGENE and APREA.

 

J.             Conflicts of Interest:

 

SYNGENE represents and warrants that it has the full power and right to enter into this Agreement. To avoid potential conflicts of interest, SYNGENE agrees to strictly honor its obligation of confidentiality under Section D, particularly as concerns SYNGENE’s agreements with other parties relating to the same or similar work as that to be done by SYNGENE under the Agreement.

 

K.            Governing law and dispute resolutions:

 

This Agreement is governed by the laws of Sweden. The parties agree that exclusive jurisdiction over and venue in any legal proceeding arising out of or relating to this Agreement or the relationship of the shall be brought in the Stockholm, Sweden

 

All disputes between the Parties arising out of this Agreement or in connection with it including its existence and validity shall be, failing amicable settlement, exclusively submitted to and finally resolved by Arbitration in accordance with the Rules of conciliation and arbitration of the International Chamber of Commerce (ICC) by one arbitrator. The language of the arbitration shall be English, and the place of arbitration shall be Stockholm, Sweden.

 

This Agreement is made in two (2) identical copies out of which one (1) for each of the parties hereto.

 

IN WITNESS WHEREOF the parties hereby execute this Agreement by their respective duly authorized officers.

 

	
SYNGENE   INTERNATIONAL PVT LIMITED
    	
 
    	
APREA
    
	
 
    	
 
    	
 
    
	
By:
    	
[***]
    	
 
    	
By:
    	
/s/ Claes Post
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name :
    	
[***]
    	
 
    	
Name:
    	
Claes Post, Ph.D
    
	
Title :
    	
[***]
    	
 
    	
Title:
    	
Chief Executive Officer
    
	
Date :
    	
[***]
    	
 
    	
Date:
    	
 
    

 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

6

 

APPENDIX 1

 

Stages and Milestone for Aprea [***]

 

Stage 1:

Activity

Procurement and set up: no later than [***] 20[***]

 

Payment

[***] days following [***]:                                      USD [***]

 

Stage 2:

Activity

Delivery of [***] (meeting the Specification): no later than [***] 20[***]

 

Payment

After approval by APREA :                                     USD [***]

 

Stage 3:

Activity

Preparation of development report including specification and establishment of batch manufacturing records: no later than [***] 20[***]

 

Payment

After approval by APREA :                                     USD [***]

 

Stage 4:

Activity

Delivery of [***] (meeting the Specification): no later than [***] 20[***]

 

Payment

After approval by APREA :                                        USD [***]

 

Payment terms:

 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

7

 

Payment shall be made against invoice, due within [***] of the date of invoice, but not prior to the payment conditions set forth above.

 

Shall be executable on the Signature of:

 

	
For Syngene International Pvt Ltd
    	
 
    	
For   Aprea
    
	
 
    	
 
    	
 
    
	
By:
    	
[***]
    	
 
    	
By:
    	
/s/ Claes Post
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
[***]
    	
 
    	
Name:
    	
Claes Post, Prof.
    
	
Title:
    	
[***]
    	
 
    	
Title:
    	
CEO
    
	
Date:
    	
[***]
    	
 
    	
Date:
    	
27th March, 2007
    

 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

8

 

APPENDIX - 2

 

Specification for APR-246

 

[***]

 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}]]