Document:

Distributor Agreement

 Exhibit 10.27 
  
 DISTRIBUTOR AGREEMENT 
 (EXCLUSIVE) 
  
 This
Distributor Agreement (“Agreement”) is made and entered into by and between Mirenco, Inc., an Iowa corporation with its principal place of business at 206 May Street, Radcliffe, Iowa 50230 (“Mirenco”) and Vision Integrated
Marketing, a Maryland corporation, at 241 East Fourth Street, Frederick, Maryland 21701 (“Distributor”). 
  
 WHEREAS, Mirenco is the owner of U.S. patent number 958958 issued September 25, 1990 entitled “Engine Emissions Control Apparatus
Method,” U.S. patent number 5315977 issued May 31, 1994 entitled “Fuel Limiting Method and Apparatus for Internal Combustion Engine,” and Mexican patent number 180,658 issued on January 17, 1996 (collectively, the
“Patents”); and 
  
 WHEREAS, Mirenco is the
holder of the registration of the mark “DriverMax by Mirenco”® registered on the Principal register of the United States Patent and Trademark Office (the “Mark”); and 
  
 WHEREAS, Mirenco out sources the manufacture of certain products for fuel management and emission control of internal combustion engines pursuant
to the Patents, and said products are marketed by Mirenco under the Mark; and 
  
 WHEREAS, Distributor service and repair diesel powered vehicles and equipment and secure contracts for the sale of Mirenco’s products in the Territory (as that term is defined in Paragraph 4 of this
Agreement); and 
  
 WHEREAS, Mirenco desires to appoint
Distributor as a non-exclusive distributor of Mirenco’s products in the Territory, and Distributor desires to accept such appointment, all upon the terms and conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. Appointment. Mirenco hereby appoints Distributor as an independent wholesale distributor of Mirenco’s
Products (as that term is defined in Paragraph 3 of this Agreement) subject to the terms of this Agreement. The appointment by Mirenco granted to Distributor shall be the right to purchase, promote, resell and service the Products in accordance with
the terms of this Agreement. Distributor hereby warrants and covenants that Mirenco shall be Distributor’s sole and exclusive provider of fuel management and emission control products for internal combustion engines. 
  
 2. Exclusive Rights of Distributor. Mirenco appoints
Distributor as an exclusive distributor of the Products in the Territory for the term of this Agreement. 
  
  

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 3. Definition of Products. For purposes of this Agreement, the term “Products”
shall mean only those products which are specifically described in Schedule A as attached hereto from time to time. Mirenco reserves the right to change any listing of the Products on Schedule A or any aspect or characteristic of the Products
including, but not limited to, the design, function or Mirenco’s suggested retail price. Distributor shall have no right to market or distribute any goods or products of Mirenco other than the Products listed herein. Notwithstanding any term or
condition contained herein or otherwise which may appear to be to the contrary, Mirenco shall have the right, in its sole discretion and at any time, to discontinue the marketing and sale of any or all of the Products or combination of the Products
in the Territory and shall otherwise have the unqualified right to manage its business in all respects, including, without limitation, making all decisions with respect to Mirenco’s sale price for products, discounts, altering the composition
of any Product, the warranties made with respect to any Product (if any), and the labeling or packaging of any Product. 
  
 4. Territory. Distributor agrees to conduct its efforts only in the sales and service area described in Schedule B (the
“Territory”). Distributor agrees not to act, advertise or use sales persons or representatives in any other market without the express written consent of Mirenco. 
  
 5. Submission of Purchase Orders. (a) Distributor agrees that it shall, from time to time, submit completed
purchase orders to Mirenco (each, a “Purchase Order” and collectively the “Purchase Orders”), for the purchase of Product. A Purchase Order shall become a binding order upon both Mirenco and Distributor when Mirenco accepts the
Purchase Order (each, an “Accepted Order” and collectively the “Accepted Orders”) as provided in Paragraph 6 of this Agreement, but all upon and subject to the terms and conditions of this Agreement, including, without
limitation, Mirenco’s right to withhold Products under an Accepted Order or to terminate an Accepted Order pursuant to Paragraph 7 of this Agreement, and to any delays or failures in filling any Accepted Order which occur pursuant to Paragraph
8 of this Agreement. 
  
 Without limiting the generality of the
immediately preceding paragraph, Distributor also agrees that is shall in all events submit Purchase Orders to Mirenco during the initial year of the term of this Agreement for a minimum of 200 DriverMaxes®.
 (50 per quarter) 
  
 (b) Each Purchase Order shall be placed by Distributor by forwarding the completed and executed Purchase Order to Mirenco at
Mirenco’s address for notices as specified below in this Agreement, or at such other location as Mirenco shall determine and give notice of to Distributor. 
  

(c) All Accepted Orders are expressly limited solely to the terms and conditions of the corresponding Purchase Order and this Agreement;
provided, however, that Mirenco hereby objects to any additional, different or inconsistent terms which may be set forth in any Purchase Order, or in any other document that Distributor may at any time submit to Mirenco along with any Purchase Order
or otherwise, and no such additional, different or inconsistent terms shall be a part of any Accepted Order, this Agreement, or shall otherwise have any force or effect whatsoever. 
  
  

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 6. Acceptance of Purchase Orders. (a) A Purchase Order shall not become, or be deemed to
be, an Accepted Order until it is accepted by Mirenco as provided in this Paragraph 6. Mirenco agrees that it will (subject to the following) accept conforming Purchase Orders submitted by Distributor; provided however, that Mirenco may reject a
Purchase Order or Purchase Orders, in whole or in part, (i) because of the occurrence of or existence of any Impossibility Event (as that term is defined in Paragraph 8 below); (ii) if Distributor is in breach or nonfulfillment of or default under
any payment term or payment condition of this Agreement or otherwise; (iii) the amount owed by Distributor to Mirenco as of the date of the Purchase Order exceeds, or if the amount owed by Distributor to Mirenco after taking into consideration the
purchase price for the Products under the Purchase Order will cause Distributor to exceed, any credit limit as Mirenco may establish for Distributor from time to time; (iv) because of the occurrence of an event triggering Mirenco’s rights in
Paragraph 7 below; or (iv) if Mirenco is unable due to production or capacity limitations to fulfill the Purchase Order. 
  
 (b) Any Purchase Order which is subject to any of the circumstances specified in subclauses (i) through (iv) in subparagraph (a) immediately above shall
be subject to acceptance by Mirenco, in whole or in part, in Mirenco’s sole discretion. If Mirenco determines not to accept any such Purchase Order, in whole or in part, Mirenco shall promptly notify Distributor of such fact and of the reasons
for rejection of all or part, as the case may be, of the Purchase Order. 
  
 7. Additional Rights of Mirenco. Notwithstanding anything in this Agreement which may appear to the contrary, Mirenco reserves the right to withhold fulfilling any Accepted Order during any period of
time that Distributor is in breach or default under any term or condition of an Accepted Order or any other agreement between Mirenco and Distributor. Mirenco also reserves the right to terminate any Accepted Order in the circumstances and as
provided in Paragraph 8 of this Agreement. In addition, if reasonable grounds for insecurity arise with respect to Distributor’s performance under an Accepted Order, Mirenco may demand payment in advance and other adequate assurances of
Distributor’s performance, and Mirenco may reject any Purchase Orders or withhold fulfillment of any Accepted Orders, until Distributor provides such assurances to Mirenco. Mirenco’s exercise of its rights under this Paragraph 7 or under
Paragraph 8 shall not be, or be deemed to be, a breach of this Agreement. 
  
 8. Impossibility. Notwithstanding anything in this Agreement which may appear to be to the contrary, if any term or condition of this Agreement to be performed or observed by Mirenco is rendered
impossible of performance or observance or commercially unreasonable due to any force majeure or any other act, omission, matter, circumstance, event or occurrence beyond the reasonable control of Mirenco (each, an “Impossibility Event”),
Mirenco, for so long as such condition exists, shall be excused from such performance or observance, provided Mirenco promptly notifies Distributor in writing of the act, omission, matter, circumstance, event or occurrence relied upon for the
invocation of this Paragraph. For purposes of this Paragraph, the term “Impossibility Event” includes, without limitation, fire, storm, flood, earthquake, acts of God, civil disturbances or disorders, war, computer failures, computer
viruses, acts of computer hackers, sabotage, strikes, lockouts, labor disputes, labor shortages, stoppages or slowdowns initiated by labor, transportation embargos, or failure or shortage of Products. 
  
 9. Delivery of Products and Risk of Loss. Any Products
purchased by Distributor hereunder shall be made available to Distributor at the location of the Products. Unless 
  

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 otherwise expressly agreed in a written document signed by both Mirenco and Distributor, Distributor shall be responsible
for arranging and providing, at Distributor’s cost, for the delivery by common truck carrier (“Distributor’s Carrier”) of all Products to whatever locations are desired by Distributor, except only that Mirenco will provide the
labor necessary to load the Products on the truck of Distributor’s Carrier at the location of the Products. All duties, levies, landing charges, local taxes (including, without limitation, sales, use, import, export and excise taxes) and other
charges howsoever designated shall be borne and paid by Distributor. The Products shall, subject to the occurrence of or existence of an Impossibility Event and to acts or omissions of Distributor’s Carrier, be made available to
Distributor’s Carrier during normal business hours on the pick-up date or dates specified by Distributor in the applicable Accepted Purchase Order. Distributor shall be responsible for the selection of Distributor’s Carrier, but Mirenco
reserves the right to reject any carrier selected by Distributor from time to time upon any reasonable basis. Distributor shall also be responsible for compliance with all laws, rules, regulations and orders applicable to the delivery,
transportation and shipment of the Products, including, without limitation, those applicable to the export of any of the Products outside of the United States. 
  

All risk of loss, destruction or damage to all Products shall automatically pass from Mirenco to Distributor upon the loading of the Products on the
truck of Distributor’s Carrier at the location of the Products. 
  
 10. Compensation to Distributor. As Distributor’s sole compensation hereunder, Distributor shall receive, with respect to each Product Distributor makes a sale (a “Distributor Sale”), and with respect to each
Product Mirenco sells directly to a customer in the Territory (a “Mirenco Sale”), a sales commission, with the rate of the commission to be determined in accordance with the commission schedule for Distributor Sales, Sales Representative
Sales and Mirenco Sales, respectively, set forth in Schedule C attached hereto from time to time. 
  
 Mirenco shall have the right to determine, in its sole discretion, whether a sale constitutes a Distributor Sale or Mirenco Sale. In the event Mirenco
adds new Products, Mirenco shall provide Distributor with an amended Schedule C reflecting the commission rates applicable to such new Products. Mirenco also reserves the right to amend the commission rates and other terms set forth on the then
current Schedule C at any time, in Mirenco’s sole discretion, but any such amended Schedule C shall not be effective until sixty (60) days after Mirenco provides Distributor with a copy of the amended Schedule C. 
  
 The commission payable to Distributor on each sale shall be payable on or
before the fifteenth (15th) day of the second succeeding month following the date of the sale, but in no event prior
to receipt of full payment by Mirenco for the Products in question. Distributor will receive no commission on any sale made in violation of any of the terms of this Agreement. Distributor agrees that Mirenco shall have the right to setoff against
any amounts owed to it by Distributor pursuant to this Agreement including, without limitation, the amount of any commissions previously paid to Distributor with respect to Products which are subsequently returned or rejected by the customer in
question, for whatever reason. 
  
  

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 11. Price, Terms of Sale and Letter of Credit. Mirenco will sell Products to Distributor
and Distributor will purchase Products from Mirenco at prices as set forth in Schedule D attached hereto from time to time. Mirenco shall provide Distributor with ninety (90) days written notice prior to changing Product pricing. Product pricing
shall include costs of packaging and crating Product for export in accordance with Mirenco’s ordinary course of business, but any special handling or packaging (including any necessary to meet any requirements imposed by any authority of the
Territory) shall be at Distributor’s expense. The aggregate purchase price with respect to each Accepted Purchase Order shall be due and payable in U.S. dollars by Distributor, in full, within thirty (30) days of the date of Mirenco’s
invoice to Distributor therefore; provided, however, that Mirenco reserves the right to place all sales to Distributor on a C.O.D. basis. Mirenco shall invoice Distributor concurrently with the Products being made available to
Distributor’s Carrier pursuant to Paragraph 9 of this Agreement. Distributor shall pay a late charge on any delinquent amount compounded and computed daily at the lesser of (i) 1.5% per month, or (ii) the highest rate permitted by applicable
law. Title to the Products shall be deemed to transfer from Mirenco to Distributor, and all risks of loss associated with ownership of the Products shall transfer to Distributor, when Mirenco places the Products in the possession of
Distributor’s Carrier. Distributor shall hold Mirenco harmless for any loss of Products at such time.  
  
 12. Sales Efforts by Distributor. Distributor will maintain an adequate inventory of the Products and will diligently develop and promote
the sales of the Products covered by this Agreement to the satisfaction of Mirenco. Distributor agrees to provide installation services for end-purchasers of Products. Distributor shall have the authority to sell the Products at any price which
Distributor believes will be accepted by the market for the Products without regard to Mirenco’s suggested retail price. Distributor will provide an adequate sales staff and customer relations organization trained to instruct customers in the
use of the Products and can demonstrate same. 
  
 13.
Additional Duties of Distributor. Distributor agrees to devote its best efforts and such time as is necessary or appropriate to diligently market and promote the sale of the Products in the Territory. Without limiting the generality of
the foregoing, and in addition thereto, Distributor agrees that it will: 
  
 (a) Regularly and frequently bring the Products to the attention of all individuals or entities of any nature in the Territory who may reasonably be determined to be prospective purchasers of any or all of the
Products. 
  
 (b) Contact, on a periodic basis, all existing
individuals or entities who are purchasing any Products in the Territory to promote the continued and further purchases of the Products and to assure that all such existing customers are satisfied with the Products and the service being provided to
them. 
  
 (c) Maintain complete, accurate and up-to-date records
of its efforts under this Agreement, including, without limitation: (i) records setting forth the names and addresses of all individuals and entities contacted by Distributor regarding any Products; (ii) a general record of 
  

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 all discussions with such individuals and entities; and (iii) copies of all correspondence to and from such persons and
entities. All such records shall be the property of Mirenco and shall be made available for inspection and copying by Mirenco upon the request of Mirenco and shall in all events be surrendered to Mirenco upon the termination of this Agreement (for
whatever reason). 
  
 (d) Make every effort to handle to the
satisfaction of any potential or existing customer, and on a same-day basis, any orders or any questions or problems relating to the Products or other services being or to be provided to the customer, and advise all potential or existing customers
to feel free to contact Mirenco regarding such questions or problems and in all events to promptly notify an appropriate representative of Mirenco of any such questions or problems when necessary or appropriate. 
  
 (e) Comply at all times with all applicable laws, rules, regulations,
ordinances and orders, and to in all events perform all of its duties and obligations hereunder in a good, professional and businesslike manner. 
  
 (f) Obtain and continuously maintain in effect any and all governmental or other approvals, authorizations, registrations, licenses or permits which are
necessary or appropriate for Distributor to fully and timely perform all of its obligations hereunder, including, without limitation, obtaining and maintaining in effect all registrations of the Products and approvals of this Agreement in the
Territory as provided for in Paragraph 16 below. Distributor shall provide evidence of all of the same to Mirenco from time to time upon the request of Mirenco. 
  

(g) Immediately advise Mirenco in writing of any matters with respect to any Product which come to the attention of Distributor and which may raise an
issue of compliance of the Products with applicable local, provincial, state, federal or other governmental law, rule or regulation in the Territory, and how such matters can most efficiently be resolved, including, without limitation, with respect
to the packaging or labeling thereof; provided, however, that Mirenco shall be responsible for all costs and expenses necessary to resolve such matters in the event Mirenco determines, in its sole discretion, to resolve such matters. 
  
 (h) Not engage in any unethical, illegal, deceptive, fraudulent or misleading
activities in connection with the performance of any services hereunder, including, without limitation, providing any deceptive, fraudulent, misleading, false or incorrect information to Mirenco, any potential or existing customer, or any third
party dealing with Mirenco or any customer, and whether about the Products or otherwise. 
  
 (i) Engage, at the sole expense of Distributor, a sufficient number of personnel to properly canvas the Territory and to assist in the performance of all other services required of Distributor hereunder. All such
personnel shall be employees, agents or independent contractors of Distributor and not of Mirenco, and shall be bound by all of the terms and conditions of this Agreement. Distributor shall be responsible and liable for assuring full compliance by
such personnel with all of the terms and conditions of this Agreement, including, without limitation, this Paragraph 13 and Paragraphs 19 through 24 below. 
  

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 (j) Recognize, both during and after the term of this Agreement, and without limiting Paragraphs 19 and
22 below, the exclusive right and ownership of Mirenco in and to the Patents, the Mark, all names, trade names, trade or service marks, patents, copyrights and all other intellectual properties used or licensed by the Mirenco in connection with the
Products and Mirenco’s business, and to market and sell the Products only under the Mark or other trade or service marks and trade names regularly applied to them by Mirenco and otherwise in accordance with Paragraph 19 below. 
  
 (k) Not do any act or say anything, or omit to do or say any act or thing,
during the term of this Agreement or at any time thereafter, which may impair, damage, or destroy the goodwill or reputation of the Products or Mirenco, or that is detrimental to Mirenco or its business. 
  
 (l) Make no promises, representations or commitments which are not within the
authority granted to Distributor hereunder, including, without limitation, accepting the return of or making any allowance with respect to any Products without the prior written approval of Mirenco, and make no warranties or promises to customers
with respect to the condition, quality, composition, capabilities or otherwise of any Products which are not specifically made or given in writing by Mirenco (if any) to customers. 
  
 (m) Provide all customers with only those written promotional and sales materials, including, without limitation, price
sheets and order forms, which have been either provided by Mirenco or otherwise previously approved by Mirenco pursuant to subparagraph (o) immediately below. 
  

(n) Promptly submit to an appropriate representative of Mirenco all correspondence or other documents regarding the Products which a person or entity
may provide directly to Distributor. 
  
 (o) Submit all proposed
advertising materials relating to the Products to Mirenco for Mirenco’s approval, prior to dissemination of any of the same, and to utilize only such advertising materials as are expressly approved by Mirenco, in its sole discretion, in
writing. 
  
 (p) Promptly submit all financial information
(including, without limitation, financial statements) as may be reasonably requested from time to time by Mirenco for purposes of Mirenco determining that Distributor has the financial and competitive capabilities necessary to fully and timely
perform all of Distributor’s duties and obligations hereunder. All financial information submitted by Distributor shall be true and accurate in all material respects. 
  
 14. Duties of Mirenco. Mirenco agrees to: 
  
 (a) Provide sales and technical assistance to Distributor similar to that provided by Mirenco to its other independent
distributors, if any. 
  
 (b) Furnish Distributor with a
reasonable amount of such promotional and sales materials as Mirenco, in its sole discretion, generally prepares in regard to sales of the Products. 
  

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 (c) Identify Distributor in such of Mirenco’s promotional materials as Mirenco may, in its sole
discretion, deem appropriate. 
  
 (d) Sell Products to Distributor
as provided herein; provided, however, that Mirenco shall not be liable for any loss or damage caused by its nonacceptance or delay in acceptance of orders submitted by Distributor which are not in compliance with all applicable procedures,
policies, rules and regulations of Mirenco, nor for failure or delay in meeting any order of Distributor or in performing any other duty or obligation hereunder arising from or to any capacity or production limitations affecting Mirenco or any
failures or delays (for whatever reason) by any vendors or suppliers of Mirenco, with Mirenco reserving the right to allocate its Products and services in such amounts and manner as it deems appropriate, in its discretion. 
  
 15. Direct Sale Right. Notwithstanding any term or condition
herein which may appear to be to the contrary, Distributor acknowledges and agrees that Mirenco expressly reserves the right (but does not have the obligation) at any time and from time to time to communicate directly with any potential or existing
customer or customers in the Territory; to directly market, promote and sell the Products in the Territory; and to otherwise act in all matters in the Territory with or independently of the Distributor. 
  
 16. Expenses. Distributor agrees that it shall pay and be
solely responsible for all costs and expenses of any nature whatsoever which are incurred by Distributor in rendering services pursuant to this Agreement, and that Mirenco shall not be responsible for any such costs and expenses. Distributor further
agrees that it shall pay and be solely responsible for the cost of qualifying the Products within the Territory and for obtaining all necessary Territory governmental approvals of this Agreement and the Products, if any, and for maintaining all of
the same during the term of this Agreement. Distributor shall provide evidence of the same to Mirenco upon request of Mirenco from time to time. All such registrations shall be in the name of Mirenco, unless otherwise affirmatively required by the
applicable governmental authority in the Territory, but any such registration in the name of Distributor shall not operate to grant any rights to Distributor in the Products or otherwise, and any such registration in Distributor’s name shall be
terminated, cancelled or revoked by Distributor, at its cost and expense, immediately following the expiration or termination of this Agreement (for whatever reason). 
  
 17. Term and Termination. (a) The term of this Agreement shall be for a period of one (1) year from the date
hereof, and shall be automatically renewed thereafter for successive one (1) year periods, unless either party provides written notice to the other of its intention not to renew this Agreement, for whatever reason, with or without cause, at least
thirty (30) days prior to the termination date of the one (1) year term then in effect, or this Agreement is earlier terminated pursuant to any other provision of this Agreement. 
  
 (b) This Agreement may be terminated by either Mirenco or Distributor, with or without cause, for any reason or no reason,
effective thirty (30) days following the giving of written notice thereof to the other. 
  

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 (c) This Agreement may be terminated by either party in the event of any breach or nonfulfillment of or
default under any term or condition of this Agreement by the other party, which breach, nonfulfillment or default is not fully cured by the applicable party (if capable of cure) within thirty (30) days following the giving of written notice thereof
by the other party; provided, however, that this Agreement shall terminate immediately and without opportunity for cure by Distributor (i) upon receipt by Distributor of notice of termination from Mirenco in the event of a breach or nonfulfillment
of or default by Distributor under Paragraphs 13(e), 13(f), 13(g), 13(h), 13(i), 19, 21 or 22 hereof; or (ii) upon the dissolution or liquidation of, termination of existence of, insolvency of, business failure of, appointment of receiver of any
part of the property of, assignment for the benefit of creditors by, or the commencement of any proceeding (whether voluntary or involuntary) under any bankruptcy, insolvency, debtor-creditor, receivership or similar or related law by or against,
Distributor. 
  
 18. Transactions After Termination.
In addition to any other provisions hereof addressing the rights or obligations of the parties upon the termination of this Agreement, the parties agree that upon the termination of this Agreement, for whatever reason: 
  
 (a) Distributor shall provide Mirenco with a then current list of the names
and addresses of all potential customers and existing customers contacted or otherwise serviced by Distributor pursuant to this Agreement. 
  
 (b) Distributor shall return all written promotional, advertising and sales materials provided to Distributor by Mirenco hereunder. 
  
 (c) Notwithstanding anything herein or otherwise which may appear to be to
the contrary, the termination of this Agreement shall not affect any liability or obligation of the parties hereunder which shall accrue prior to such termination, including, but not limited to, any liability for loss or damage or on account of
breach, nor shall the termination of this Agreement (by either party and for whatever reason) affect the terms or provisions hereof which contemplate performance by or continuing obligations of a party beyond the termination hereof, including,
without limitation, the obligations of Distributor under Paragraphs 13(j), 13(k), 21, 22, 24 and 26 hereof, all which shall continue in effect notwithstanding any termination hereof. 
  
 19. Mirenco Trademarks. Distributor is hereby granted a limited, nonassignable and nontransferable right to
use Mirenco’s trade or service marks, including the Mark, in distributing, advertising and promoting the sale of the Products, but only in strict accordance with Mirenco’s policies regarding the use of its trade or service marks and trade
names. The rights conferred herein shall cease and terminate immediately upon notice to cease such use provided by Mirenco or, without notice, upon the termination of this Agreement, and Distributor agrees to take, at its sole cost and expense, all
such steps as are necessary or appropriate to cease all use of Mirenco’s trade or service marks and trade names in such event. Notwithstanding anything herein or otherwise which may appear to be to the contrary, the Mark and any of
Mirenco’s other trade or service marks and trade names shall at all times be and remain the sole and exclusive property of Mirenco and Mirenco and reserves all rights in and to the same. Distributor agrees to use its best efforts to notify
Mirenco of any and all infringements of the Mark or any of Mirenco’s other trade or service marks or trade names pertaining to the Products 
  

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 which may come to Distributor’s attention during the term hereof and to assist Mirenco in taking such action against
said infringement as Mirenco, in its sole discretion, may decide. 
  
 20. Grant of Security Interest by Distributor. Distributor hereby grants to Mirenco a security interest in and to all of the Products which are at any time sold by Mirenco to Distributor, as well as the proceeds thereof. The
security interest does not include any other assets of Distributor. The security interest secures payment of all amounts payable by Distributor to Mirenco under this Agreement and the performance of all other duties and obligations of Distributor
under this Agreement, whether now existing or hereafter arising. Distributor will be in breach of and default under the security interest granted by this Paragraph upon the failure to make any payment, when due and payable, of any amounts payable
under this Agreement, or upon the breach or nonfulfillment of or default under any other term or condition of this Agreement. After the occurrence of any breach or default, Mirenco may exercise at any time and from time to time any and all rights
and remedies available to a secured party under applicable law, including, without limitation, the right to sell, lease or otherwise dispose of all of the goods and property subject to the security interest granted by this Paragraph and the right to
take possession of such goods and property. For that purpose, Mirenco may enter upon any premises on which any of such goods or property or any part thereof may be situated and remove the same, all at the expense of Distributor. Distributor upon
demand shall pay to Mirenco the amount of all expenses, including reasonable attorneys’ fees, incurred by Mirenco in seeking to collect any sums secured hereby or to enforce any other rights or remedies in or under this Agreement or the
security interest granted by this Section, and all such amounts shall be secured hereby. The proceeds of any disposition of any of the goods or property subject to the security interest granted by this Paragraph may be applied by Mirenco first to
the payment of all such expenses, and any balance of such proceeds shall then be applied against the other amounts secured hereby in such order of application as Mirenco may elect. Distributor authorizes Mirenco to file financing statements and
amendments and continuation statements to financing statements to the full extent permitted by law and as Mirenco otherwise deems necessary or appropriate from time to time. 
  

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 21. Noncompetition. (a) As further consideration for this Agreement, Distributor covenants
and agrees that during the term of this Agreement and for a period of two (2) years thereafter (whether this Agreement is terminated by Mirenco, by Distributor or by mutual consent, and for whatever reason), Distributor will not, directly or
indirectly, (i) accept other employment or any other engagement, appointment or association of any nature whatsoever with, or become an investor or otherwise interested or concerned in or with, any individual, person, proprietorship, partnership,
limited partnership, limited liability company, joint venture, corporation, association or other entity of any nature which is a competitor, directly or indirectly, of Mirenco in the manufacture, production, representation, marketing, promotion,
distribution or sale of, or which otherwise deals with, any goods or products which are competitive in any way with the Products or any services provided in connection with the Products (regardless of the use to which any such goods or products are
made by the user thereof); or (ii) engage in any other activity whatsoever (whether on its own account or for another) which is competitive with or detrimental to Mirenco in the operation of their respective businesses as they relate to any of the
Products, including, without limitation, contacting or soliciting any potential or existing customers of any Product for purposes of the sale of any competitive goods or products to such customers or any employee or other personnel of Mirenco for
purposes of employing or otherwise retaining such employee or other personnel, excepting any employees or other personnel who have left their employment or engagement by Mirenco at least eighteen (18) months prior to Distributor’s solicitation
or employment of such employee or other personnel. 
  
 (b)
Distributor and Mirenco expressly acknowledge and agree that it is not possible to limit the noncompetition covenants set forth in this Paragraph 21 to specific persons or entities, or to any specific location or geographic area, and that such a
limitation would prevent Mirenco from adequately protecting its justifiable business interests and frustrate the intent of Mirenco and Distributor as to this Paragraph 21. 
  
 (c) Distributor expressly acknowledges, agrees and warrants to Mirenco and all third parties that the covenants contained in
this Paragraph 21 are reasonable and consistent with the rights of Mirenco to protect its business, and are not to be held invalid or unenforceable because of the scope of the area, actions subject hereto or restricted hereby, or the period of time
within which such restrictions are operative. Distributor further acknowledges, agrees and warrants to Mirenco, and all third parties that enforcement of a remedy by way of injunction shall not prevent Distributor from earning a livelihood or work
an undue hardship on Distributor, and that such injunctive relief, as provided for in Paragraph 23 below, is necessary and appropriate to protect the reasonable business expectations and livelihood of Mirenco. In the event the restrictive covenant
contained in this Paragraph 21 is deemed by a court, notwithstanding the foregoing, to be too broad in terms of the scope of the area, actions subject hereto or restricted hereby, or the time period within which such restrictions are operative, or
otherwise, Distributor expressly authorizes the court to enforce the restrictive covenant contained in this Paragraph 21 to the full extent the court deems reasonable. 
  

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 22. Proprietary and Confidential Information. (a) Distributor acknowledges and agrees that
it is necessary for Mirenco to prevent the unauthorized use and disclosure of Proprietary and Confidential Information, as hereinafter defined, regarding Mirenco and the Products. Accordingly, Distributor covenants and agrees that it will not,
during the term of this Agreement or at any time following the termination of this Agreement, for whatever reason (whether this Agreement is terminated by Mirenco, by Distributor or by mutual consent), directly or indirectly, engage in or refrain
from taking any action which may in any way lead to the disclosure of any Proprietary and Confidential Information regarding Mirenco or the Products to any third party, nor use any Proprietary and Confidential Information for its own benefit.

  
 (b) For purpose of this Agreement, the term “Proprietary
and Confidential Information” shall be deemed to include all confidential and proprietary information relating to the Products, or Mirenco, including, but not limited to, (i) corporate and business information, including contractual
arrangements (including the terms of this Agreement), plans, strategies, tactics, policies and resolutions; (ii) any negotiations; (iii) marketing information, including price and discount lists, sales or product plans, strategies or methods; (iv)
customers, customer lists, prospects or market research data, including any lists or data developed or prepared by Mirenco or Distributor in performing hereunder; (v) financial information or projections, including cost and performance data, data
arrangement, equity structure, investors, and holdings; (vi) operational information, including trade secrets, control and inspection practices, suppliers and vendors, all information related to the Products, inventions, technical and non-technical
data, techniques, methods of manufacture, machines, equipment, apparatus, molds, tools, dies, drawings, blueprints, experimental or developmental work, photographs, slides, motion pictures, video tapes, compositions, formulas, formulations,
processes, and know how; (vii) the Patents, the Mark and all copyrights, trademarks, service marks, trade secrets or other intellectual properties owned, utilized or licensed by Mirenco; (viii) personnel information, including personnel lists,
resumes, personal data, organizational structure and performance evaluations; (ix) information provided to or obtained in any way by Mirenco under restrictions as to use, reproduction or further disclosure; and (x) information provided to or
obtained in any way by Mirenco regarding another person, corporation or other form of entity which owns in whole or in part Mirenco or which is owned or controlled by Mirenco or under common control with Mirenco (collectively, the
“Affiliates”), and which information is proprietary and confidential to the Affiliates which information is hereby deemed to include, without limitation, all of the types of information described in this subparagraph (b). 
  
 (c) Distributor agrees that any use or disclosing by it of any Proprietary
and Confidential Information which is both within the limited authority expressly granted to Distributor by this Agreement and is otherwise necessary, proper and lawful shall also in all events be limited only to its responsible personnel with a
bona fide need to know and, in such event, to each such person limited to that portion of the Proprietary Confidential Information that each such person needs to know. Each such person shall be bound by the terms of this paragraph as well as the
terms of any separate nondisclosure agreement between the person in question and Distributor or Mirenco. Distributor shall in all events, however, be and remain responsible and liable for assuring compliance by Distributor’s personnel with the
terms and conditions of this paragraph and other terms and conditions of this Agreement. 
  

 Page 12 of 22 

 Distributor further agrees that any information it develops, prepares or compiles in performing its
services hereunder which is Proprietary and Confidential Information as defined above, and all other Proprietary and Confidential Information shall be or is, as the case may be, and shall at all times be and remain the sole and exclusive property of
Mirenco and that all physical reproductions of any nature pertaining to any Proprietary and Confidential Information, including, but not limited to, electronic media, memoranda, notebooks, notes, data sheets and records, and any and all copies of
the same, shall be surrendered to Mirenco immediately upon the termination of this Agreement (whether this Agreement expires by its terms or is terminated by Mirenco, by Distributor or by mutual consent, and for whatever reason). 
  
 23. Injunction. Distributor agrees that a breach or an imminent
breach of Paragraphs 21 or 22 of this Agreement shall constitute a material breach of this Agreement for which Mirenco will have no adequate remedy at law. Distributor agrees, therefore, that upon a breach or imminent breach of Paragraphs 21 or 22
of this Agreement, Mirenco shall have and may exercise any and all rights and remedies available at law or in equity, including, but not limited to, the right to preliminary and permanent injunctive relief restraining Distributor from any further
violation of said paragraphs; as well as an equitable accounting of all profits or benefits arising out of such breach. 
  
 24. Notification of Unauthorized Disclosure. Distributor agrees to immediately notify Mirenco of any information which comes to
Distributor’s attention which does or might indicate that there has been any improper use or disclosure or any other loss of confidentiality of any Proprietary and Confidential Information, and upon discovery of such information or of any
unauthorized use or communication of any Proprietary and Confidential Information, Distributor shall take such steps as are necessary or appropriate to prevent any further use or communication of the information and shall otherwise fully cooperate
with Mirenco in this regard. 
  
 25. Limited Warranty;
Disclaimer of all Other Warranties; Private Statute of Limitations. Mirenco represents and warrants to Distributor that Products delivered to Distributor or its customers shall be free from defect for a period not to exceed one (1) year from
the date of the Accepted Purchase Order corresponding to such Products (the “Warranty Period”). The foregoing warranty will be automatically null and void if the defect has resulted in any way from Distributor’s negligence, from
accident, abuse, misapplication, or if the Product has been altered in any manner without the express prior written consent of Mirenco. 
  
 If any Products fail to conform to the above warranty during the Warranty Period and Distributor provides Mirenco, before the close of the Warranty
Period, with (i) written notice of the failure, and (ii) satisfactory written evidence and other proof of such failure, Mirenco will, at Mirenco’s sole option, replace the Products, at Mirenco’s cost, with like Products. MIRENCO’S
ENTIRE LIABILITY AND DISTRIBUTOR’S SOLE AND EXCLUSIVE REMEDY WITH RESPECT TO ANY BREACH OF THE FOREGOING WARRANTY BY MIRENCO SHALL BE REPLACEMENT OF THE PRODUCTS AS PROVIDED IN THE PRECEDING SENTENCE. ANY REPLACEMENT PRODUCTS WILL BE WARRANTED
AS PROVIDED ABOVE ONLY FOR THIRTY (30) DAYS FROM THE DATE THE REPLACEMENT PRODUCTS IN QUESTION ARE LOADED FOR SHIPMENT TO DISTRIBUTOR. 
  

 Page 13 of 22 

 EXCEPT FOR THE LIMITED WARRANTY EXPRESSLY GIVEN ABOVE, MIRENCO MAKES NO EXPRESS WARRANTIES, AND HEREBY EXCLUDES AND
DISCLAIMS IN ENTIRETY ALL IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO ANY PRODUCTS PROVIDED BY MIRENCO. IN NO EVENT SHALL MIRENCO BE LIABLE FOR
ANY LOST PROFITS, EXEMPLARY, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHATSOEVER ARISING OUT OF THIS AGREEMENT (EVEN IF MIRENCO HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), OR ARISING OUT OF THE USE OF OR INABILITY TO USE THE PRODUCTS
OR ANY OTHER GOODS OR PRODUCTS FOR ANY REASON AND FOR ANY PURPOSE WHATSOEVER. ANY ACTION BY DISTRIBUTOR FOR BREACH OF ANY TERM OF THIS AGREEMENT MUST BE COMMENCED BY DISTRIBUTOR WITHIN ONE (1) YEAR AFTER THE DATE THE CAUSE OF ACTION ACCRUES.

  
 Distributor waives all rights of subrogation any
of its insurers may have against Mirenco. 
  
 26.
Indemnification. Distributor agrees to defend, indemnify and hold Mirenco harmless from and against any claim, demand, proceeding, loss, liability, damage, cost or expense (including, but not limited to, attorneys’ fees, legal
expense and court costs) arising in connection with or resulting from any breach of warranty, misrepresentation or non-fulfillment of any agreement on the part of Distributor under this Agreement or which are incurred by Mirenco in enforcing its
rights under this Agreement. Distributor shall be responsible and liable for assuring the full, timely and complete compliance with all of the terms and conditions of this Agreement by all of Distributor’s employees and agents. 
  
 During the term of this Agreement, and for three (3) years thereafter,
Distributor must maintain in full force and effect a policy or policies of product liability insurance on an as occurrence basis in amounts no less than U.S. One Million Dollars
 (U.S. $ 1,000,000). All such policies of insurance shall be issued
by an insurance company or companies with a financial rating of not less than AAA as rated by the most current available “Bests Insurance Reports.” Executed copes of such policies of insurance, or certificates issued by such insurance
company or companies certifying to such insurance coverage, shall be delivered to Mirenco within ten (10) days after the execution of this Agreement, and thereafter within thirty (30) days prior to the expiration of the term of each such policy. All
such policies of product liability insurance shall contain an endorsement that such policy may not be cancelled or amended except upon thirty (30) days prior written notice from the insurance company to Distributor and Mirenco and that the insurer
shall give both Distributor and Mirenco notice of intention not to renew such policy at least thirty (30) days before the expiration of the policy. 
  
 27. Nature of Relationship; Authority of Parties. The relationship between the parties shall be that of buyer and seller. Nothing contained
in this Agreement, and no action taken by Mirenco or Distributor pursuant hereto, shall be deemed to constitute Mirenco and Distributor a partnership, an association, joint venture or other entity, nor shall this Agreement 
  

 Page 14 of 22 

 be construed to constitute Distributor as an employee or agent of Mirenco or cause Mirenco to be responsible in any way
for the debts or obligations of Distributor, nor shall either Mirenco or Distributor have the authority to bind the other in any respect whatsoever, it being understood and agreed by the parties hereto that Distributor shall be acting as an
independent contractor not as an agent, representative, partner, or employee of Mirenco for any purpose whatsoever. Distributor shall be solely responsible for discharging all obligations arising in connection with the operation of
Distributor’s business, including, without limitation, compliance with all laws, rules and regulations relating to importing and exporting, income tax, sales tax, social security, unemployment compensation and worker’s compensation.
Distributor acknowledges that it has not relied upon any statements or other information made or supplied by Mirenco as to the potential profitability or success of Distributor’s efforts or the relationship of the parties under this Agreement,
and that Distributor is executing this Agreement based solely upon its own investigation, due diligence, knowledge and judgment. 
  
 28. Dispute Resolution. In the event that any dispute arises with respect to any matter relating to this Agreement, including the
applicability of this arbitration clause to any such dispute, such dispute shall be resolved by a single arbitrator appointed by the mutual agreement of the parties, or in the event such mutual agreement cannot be reached, by the American
Arbitration Association. Either party may invoke this provision by written notice to the other party, and, upon receipt of such notice, both parties agree to proceed diligently to complete such arbitration and to be bound by the decision of the
arbitrators. Any such arbitration shall be conducted in accordance with the Uniform Arbitration Act; and the rules of the American Arbitration Association shall govern. The venue for such arbitration proceeding shall be Des Moines, Iowa and any
determination resulting from such arbitration shall be enforceable by judicial action in the jurisdiction identified in Paragraph 37. 
  
 29. No Waiver; Modifications in Writing. No failure or delay on the part of any party in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. Except as may be otherwise expressly
provided herein, the remedies provided herein are cumulative and are not exclusive of any remedies that may be available to any party at law or in equity or otherwise. No amendment, modification, supplement, termination or waiver of or to any
provision of this Agreement, nor consent to any departure therefrom, shall be effective unless the same shall be in writing and signed by each of the parties hereto. Any amendment, modification or supplement of or to any provision of this Agreement,
any waiver of any provision of this Agreement, and any consent to any departure from the terms of any provision of this Agreement, shall be effective only in the specific instance and for the specific purpose for which made or given. 
  
 30. Notice. Any notice required or permitted to be given
hereunder shall be in writing and shall be deemed given when personally delivered or deposited in the mail, postage prepaid, sent certified or registered, or transmitted via electronic means and addressed as follows: 
  

 Page 15 of 22 

	 	a.	If to Mirenco to: 

  
 Mirenco, Inc. 
 Attn: Richard A. Musal 
 Post Office Box 343 
 206 May Street 
 Radcliffe, Iowa 50230 
 Facsimile No.: 1-515-899-2147 
  

	 	b.	If to Distributor to: 

  

			
	 	 	 Integrated Vision Marketing

	 	 	

	 	 	 Attn: Stephen Hall

	 	 	

	 	 	 241 E. 4th Street

	 	 	

	 	 	 Frederick, MD 21701

	 	 	

	 	 	 
	 	 	

  
 or to such other address or person as
may hereafter be designated in writing by the applicable party in the manner provided in this paragraph for the giving of notices. 
  
 31. Severability. In the event that any portion of this Agreement shall, for any reason, be held to be held invalid, illegal or
unenforceable in whole or in part, the remaining portion shall not be affected thereby and shall continue to be valid and enforceable and if, for any reason, a court finds that any provision of this Agreement is invalid, illegal or unenforceable as
written, but that by limiting such provision it would become valid, legal and enforceable, then such provision shall be deemed to be written, construed and enforced as so limited. 
  
 32. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective heirs, legal representatives, successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto any rights, remedies, liabilities or
obligations under or by reason of this Agreement. 
  
 33.
Authority. Each person signing below represents that such person has been and is authorized and empowered to execute and deliver this Agreement on behalf of the party on whose behalf the person is executing this Agreement. 

 
 34. Entire Agreement. This Agreement and all exhibits and
schedules hereto constitute the entire agreement between the parties hereto pertaining to the subject matters hereof, and supersede all negotiations, preliminary agreements and all prior or contemporaneous discussions and understandings of the
parties hereto in connection with the subject matters hereof. All exhibits and schedules are incorporated into this Agreement as if set forth in their entirety and constitute a part hereof. 
  
 35. Force Majeure. If the performance of any part of this
Agreement by either parties is prevented, hindered, delayed or otherwise made impracticable by reason of any flood, 
  

 Page 16 of 22 

 riot, fire, judicial or government action, labor disputes, civil unrest, or any other cause beyond the control of either
Mirenco or Distributor, the parties obligated to perform shall be excused from such extent that it is prevented, hindered or delayed by such causes. 
  
 36. Taxes. Mirenco may deduct from anything payable under this Agreement, or any other amount payable to Distributor, the amount of any
sales tax, use tax, consumption tax, goods and services tax, value added tax, import tax, export tax, customs tax or similar tax, impost or duty levied on Mirenco or payable by Mirenco in respect to Product manufactured, supplied, distributed, sold,
exported or returned as a result of this Agreement. 
  
 37.
Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the laws of the State of Iowa in the United States of America and, to the extent applicable, the laws of
the United States of America, but without regard to provisions thereof relating to conflicts of law. Each of the parties hereby irrevocably submits to the exclusive jurisdiction of any United States federal or Iowa State district court sitting in
Des Moines, Iowa, in any action or proceeding arising out of or relating to this Agreement, and each party hereby irrevocably agrees that all claims with respect to any such action or proceeding may be heard and determined in any such United States
federal or Iowa State district court. Each of the parties irrevocably waives any objection, including, without limitation, any objection to the laying of venue or based on the grounds of forum non conveniens, which it may now or hereafter
have to the bringing of such action or proceedings in such respective jurisdictions. Each of the parties irrevocably consents to the service of any and all process in any such action or proceeding by the delivery of copies of such process to each
party, at its address specified for notices to be given hereunder, or by certified mail direct to such address. Each of the parties waives any right to a jury trial with respect to any claim, counterclaim or any other demand or matter
whatsoever arising out of this Agreement. 
  
 38.
Miscellaneous. This Agreement may be assigned, in whole or in part, by Mirenco without the prior written consent of Distributor. This Agreement may not be assigned, voluntarily or involuntarily or by operation of law or otherwise, by
Distributor (including, without limitation, to a parent, subsidiary or affiliate or by merger or other corporate restructuring) without the express prior written consent of Mirenco, which consent may be withheld in Mirenco’s sole discretion. In
the event of assignment by Distributor, all of the terms, covenants and conditions of this Agreement shall remain in full force and effect, and Distributor shall remain liable and responsible for the due performance of all of the terms, covenants
and conditions of this Agreement which it is obligated to observe and perform. 
  
 The titles or captions of sections and paragraphs in this Agreement are provided for convenience of reference only and shall not be considered a part hereof for purposes of interpreting or applying this Agreement, and
such titles or captions do not define, limit, extend, explain or describe the scope or extent of this Agreement or any of its terms or conditions. 
  
 This Agreement shall not be construed more strongly against any party, regardless of who was more responsible for its preparation. 
  

 Page 17 of 22 

 This Agreement may be executed in any number of counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument, and in making proof hereof, it shall not be necessary to produce or account for more than one such counterpart. 
  
 Words and phrases herein shall be construed as in the singular or plural number and as masculine, feminine or neuter gender,
according to the context. 
  
 IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date and year first above written. 
  

									
	MIRENCO, INC.	 	 	 	INTEGRATED VISION MARKETING
					
	By:	 	/s/ Richard A Musal	 	 	 	By:	 	/s/ Stephen Hall
	 	 	
	 	 	 	 	 	

	 Its
	 	 Secretary
	 	 	 	 Its
	 	 President

	 	 	
	 	 	 	 	 	

  

 Page 18 of 22 

 SCHEDULE A 
  

The following is a listing of the Products established pursuant to Section 3 of the Distributor Agreement: 
  

					
	 Product

	  	 Suggested Price

	  	 Unit

	 DriverMax
	  	$950.00	  	Each
	 Wire Harness
	  	$125.00	  	Each
	 Palm Pilot: 1 per fleet, per location
	  	$200.00	  	Each
	 DriverMax programming Software
	  	N/C	  	Each
	 CD Software
	  	N/C	  	Each
	 Installation
	  	Varies based on location, number of vehicles, & engine type.	  	Per vehicle
	 Initial testing
	  	N/C	  	Per vehicle
	 Additional Testing
	  	$100.00	  	Per vehicle

  
 Additional charges will be incurred to
include airfare, lodging, and per-diem. 
  

 Page 19 of 22 

 SCHEDULE B 
  
 The “Territory” for purposes of this Agreement is the Market of Federal Agencies of the United States Government
both civilian and military 
  

 Page 20 of 22 

 SCHEDULE C 
  

Commission Schedule 
  
 20 percent on evaluation services 
  

 Page 21 of 22 

 SCHEDULE D 
  

Product Pricing 
  

					
	 Product

	  	 MD Price

	  	 Unit

	 DriverMax (1-10 units)
	  	$565.00	  	Each
	 Wire Harness
	  	$85.00	  	Each
	 Palm Pilot: 1 per fleet, per location
	  	$150.00	  	Each
	 DriverMax programming Software
	  	N/C	  	Each
	 CD Software
	  	N/C	  	Each
	 Installation (*):
 Costs will be quoted prior to Purchase
Agreement
	  	Costs vary based on location, number of vehicles, & engine type.	  	Per vehicle
	 Initial testing
	  	N/C	  	Per vehicle
	Additional testing	  	Available	  	 
	Database inclusion	  	Available	  	 

  

 Page 22 of 22Zone Labs, Inc. 1998 Stock Option Plan, as amended August 26,2003

 Exhibit 4.1 
  

ZONE LABS, INC. 
 1998 STOCK OPTION
PLAN 
 (as amended as of August 26, 2003) 
  

1. ESTABLISHMENT, PURPOSE AND TERM OF
PLAN. 
  
 1.1
Establishment. This Zone Labs, Inc. 1998 Stock Option Plan (the “Plan”) is hereby established effective as of December 29, 1998 (the “Effective
Date”). 
  
 1.2 Purpose.
The purpose of the Plan is to advance the interests of the Participating Company Group and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Participating Company Group and by motivating
such persons to contribute to the growth and profitability of the Participating Company Group. 
  
 1.3 Term of Plan. The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of the shares of Stock available for issuance under the Plan have been issued and
all restrictions on such shares under the terms of the Plan and the agreements evidencing Options granted under the Plan have lapsed. However, all Options shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is
adopted by the Board or the date the Plan is duly approved by the stockholders of the Company. 
  
 2. DEFINITIONS AND CONSTRUCTION. 
  
 2.1 Definitions. Whenever used herein, the following terms shall have their respective meanings set forth below: 
  
 (a) “Board”
means the Board of Directors of the Company. If one or more Committees have been appointed by the Board to administer the Plan, “Board” also means such Committee(s). 
  
 (b) “Code” means
the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated thereunder. 
  
 (c) “Committee” means the Compensation Committee or other committee of the Board duly
appointed to administer the Plan and having such powers as shall be specified by the Board. Unless the powers of the Committee have been specifically limited, the Committee shall have all of the powers of the Board granted herein, including, without
limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law. 
  
 (d) “Company” means Zone Labs, Inc., a California corporation, or any successor corporation
thereto. 
  
 (e)
“Consultant” means any person, including an advisor, engaged by a Participating Company to render services other than as an Employee or a Director. 

 (f) “Director” means a member of the Board or
of the board of directors of any other Participating Company. 
  
 (g) “Disability” means the inability of the Optionee, in the opinion of a qualified physician acceptable to the Company, to perform the major duties of the Optionee’s position
with the Participating Company Group because of the sickness or injury of the Optionee. 
  
 (h) “Employee” means any person treated as an employee (including an officer or a Director who is also treated as an employee) in the records of a
Participating Company and, with respect to any Incentive Stock Option granted to such person, who is an employee for purposes of Section 422 of the Code; provided, however, that neither service as a Director nor payment of a director’s fee
shall be sufficient to constitute employment for purposes of the Plan. 
  
 (i) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (j) “Fair Market Value” means, as of any date, the value of a share of Stock or other property
as determined by the Board, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject to the following: 
  
 (i) If, on such date, the Stock is listed on a national or regional securities exchange or market system, the Fair Market
Value of a share of Stock shall be the closing price of a share of Stock (or the mean of the closing bid and asked prices of a share of Stock if the Stock is so quoted instead) as quoted on the Nasdaq National Market, The Nasdaq SmallCap Market or
such other national or regional securities exchange or market system constituting the primary market for the Stock, as reported in The Wall Street Journal or such other source as the Company deems reliable. If the relevant date does not fall
on a day on which the Stock has traded on such securities exchange or market system, the date on which the Fair Market Value shall be established shall be the last day on which the Stock was so traded prior to the relevant date, or such other
appropriate day as shall be determined by the Board, in its discretion. 
  
 (ii) If, on such date, there is no public market for the Stock, the Fair Market Value of a share of Stock shall be as determined by the Board in good faith without regard to any restriction other than a restriction
which, by its terms, will never lapse. 
  
 (k)
“Incentive Stock Option” means an Option intended to be (as set forth in the Option Agreement) and which qualifies as an incentive stock option within the meaning of Section 422(b) of the
Code. 
  
 (l)
“Insider” means an officer or a Director of the Company or any other person whose transactions in Stock are subject to Section 16 of the Exchange Act. 

 (m) “Nonstatutory Stock Option” means an
Option not intended to be (as set forth in the Option Agreement) or which does not qualify as an Incentive Stock Option. 
  
 (n) “Option” means a right to purchase Stock (subject to adjustment as provided in Section
4.2) pursuant to the terms and conditions of the Plan. An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option. 
  
 (o) “Option Agreement” means a written agreement between the Company and an Optionee setting
forth the terms, conditions and restrictions of the Option granted to the Optionee and any shares acquired upon the exercise thereof. 
  
 (p) “Optionee” means a person who has been granted one or more Options. 
  
 (q) “Parent
Corporation” means any present or future “parent corporation” of the Company, as defined in Section 424(e) of the Code. 
  
 (r) “Participating Company” means the Company or any Parent
Corporation or Subsidiary Corporation. 
  
 (s)
“Participating Company Group” means, at any point in time, all corporations collectively which are then Participating Companies. 
  
 (t) “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as
amended from time to time, or any successor rule or regulation. 
  
 (u) “Securities Act” means the Securities Act of 1933, as amended. 
  
 (v) “Service” means an Optionee’s employment or service with the Participating Company
Group, whether in the capacity of an Employee, a Director or a Consultant. The Optionee’s Service shall not be deemed to have terminated merely because of a change in the capacity in which the Optionee renders Service to the Participating
Company Group or a change in the Participating Company for which the Optionee renders such Service, provided that there is no interruption or termination of the Optionee’s Service. Furthermore, an Optionee’s Service with the Participating
Company Group shall not be deemed to have terminated if the Optionee takes any military leave, sick leave, or other bona fide leave of absence approved by the Company; provided, however, that if any such leave exceeds ninety (90) days, on the
ninety-first (91st) day of such leave the Optionee’s Service shall be deemed to have terminated unless the Optionee’s right to return to Service with the Participating Company Group is guaranteed by statute or contract. Notwithstanding the
foregoing, unless otherwise designated by the Company or required by law, a leave of absence shall not be treated as Service for purposes of determining vesting under the Optionee’s Option Agreement. The Optionee’s Service shall be deemed
to have terminated either upon an actual termination of Service or upon the corporation for which the Optionee performs Service ceasing to be a Participating Company. Subject to the foregoing, the Company, in its discretion, shall determine whether
the Optionee’s Service has terminated and the effective date of such termination. 

 (w) “Stock” means the common stock of the
Company, as adjusted from time to time in accordance with Section 4.2. 
  
 (x) “Subsidiary Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code. 
  
 (y) “Ten Percent Owner
Optionee” means an Optionee who, at the time an Option is granted to the Optionee, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of a Participating
Company within the meaning of Section 422(b)(6) of the Code. 
  
 2.2 Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall
include the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise. 
  
 3. ADMINISTRATION. 
  
 3.1 Administration by the Board. The Plan shall be administered by
the Board. All questions of interpretation of the Plan or of any Option shall be determined by the Board, and such determinations shall be final and binding upon all persons having an interest in the Plan or such Option. 
  
 3.2 Authority of Officers. Any officer of a Participating Company
shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, determination or election which is the responsibility of or which is allocated to the Company herein, provided the officer has apparent authority
with respect to such matter, right, obligation, determination or election. 
  
 3.3 Administration with Respect to Insiders. With respect to participation by Insiders in the Plan, at any time that any class of equity security of the Company is registered pursuant to Section 12 of the
Exchange Act, the Plan shall be administered in compliance with the requirements, if any, of Rule 16b-3. 
  
 3.4 Powers of the Board. In addition to any other powers set forth in the Plan and subject to the provisions of the Plan, the Board shall have the
full and final power and authority, in its discretion: 
  
 (a)
to determine the persons to whom, and the time or times at which, Options shall be granted and the number of shares of Stock to be subject to each Option; 

 (b) to designate Options as Incentive Stock Options or Nonstatutory Stock Options; 
  
 (c) to determine the Fair Market Value of shares of Stock or other property;

  
 (d) to determine the terms, conditions and restrictions
applicable to each Option (which need not be identical) and any shares acquired upon the exercise thereof, including, without limitation, (i) the exercise price of the Option, (ii) the method of payment for shares purchased upon the exercise of the
Option, (iii) the method for satisfaction of any tax withholding obligation arising in connection with the Option or such shares, including by the withholding or delivery of shares of stock, (iv) the timing, terms and conditions of the
exercisability of the Option or the vesting of any shares acquired upon the exercise thereof, (v) the time of the expiration of the Option, (vi) the effect of the Optionee’s termination of Service with the Participating Company Group on any of
the foregoing, and (vii) all other terms, conditions and restrictions applicable to the Option or such shares not inconsistent with the terms of the Plan; 
  
 (e) to approve one or more forms of Option Agreement; 
  
 (f) to amend, modify, extend, cancel, renew, reprice or otherwise adjust the exercise price of, or grant a new Option in substitution for, any Option or
to waive any restrictions or conditions applicable to any Option or any shares acquired upon the exercise thereof; 
  
 (g) to accelerate, continue, extend or defer the exercisability of any Option or the vesting of any shares acquired upon the exercise thereof, including
with respect to the period following an Optionee’s termination of Service with the Participating Company Group; 
  
 (h) to prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt supplements to, or alternative versions of, the Plan,
including, without limitation, as the Board deems necessary or desirable to comply with the laws of, or to accommodate the tax policy or custom of, foreign jurisdictions whose citizens may be granted Options; and 
  
 (i) to correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Option Agreement and to make all other determinations and take such other actions with respect to the Plan or any Option as the Board may deem advisable to the extent consistent with the Plan and applicable law.

  
 4. SHARES SUBJECT
TO PLAN. 
  
 4.1 Maximum Number of Shares Issuable. Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be six million six hundred sixty-two thousand one
hundred thirty 

 (6,662,130) and shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof. If an
outstanding Option for any reason expires or is terminated or canceled or if shares of Stock are acquired upon the exercise of an Option subject to a Company repurchase option and are repurchased by the Company at the Optionee’s exercise price,
the shares of Stock allocable to the unexercised portion of such Option or such repurchased shares of Stock shall again be available for issuance under the Plan. Notwithstanding the foregoing, at any such time as the offer and sale of securities
pursuant to the Plan is subject to compliance with Section 260.140.45 of Title 10 of the California Code of Regulations (“Section 260.140.45”), the total number of shares of Stock issuable
upon the exercise of all outstanding Options (together with options outstanding under any other stock option plan of the Company) and the total number of shares provided for under any stock bonus or similar plan of the Company shall not exceed
thirty percent (30%) (or such other higher percentage limitation as may be approved by the stockholders of the Company pursuant to Section 260.140.45) of the then outstanding shares of the Company as calculated in accordance with the conditions and
exclusions of Section 260.140.45. 
  
 4.2 Adjustments for
Changes in Capital Structure. In the event of any stock dividend, stock split, reverse stock split, recapitalization, combination, reclassification or similar change in the capital structure of the Company, appropriate adjustments shall be made
in the number and class of shares subject to the Plan and to any outstanding Options and in the exercise price per share of any outstanding Options. If a majority of the shares which are of the same class as the shares that are subject to
outstanding Options are exchanged for, converted into, or otherwise become (whether or not pursuant to an Ownership Change Event, as defined in Section 8.1) shares of another corporation (the “New
Shares”), the Board may unilaterally amend the outstanding Options to provide that such Options are exercisable for New Shares. In the event of any such amendment, the number of shares subject to, and the exercise
price per share of, the outstanding Options shall be adjusted in a fair and equitable manner as determined by the Board, in its discretion. Notwithstanding the foregoing, any fractional share resulting from an adjustment pursuant to this Section 4.2
shall be rounded down to the nearest whole number, and in no event may the exercise price of any Option be decreased to an amount less than the par value, if any, of the stock subject to the Option. The adjustments determined by the Board pursuant
to this Section 4.2 shall be final, binding and conclusive. 
  
 5.
ELIGIBILITY AND OPTION LIMITATIONS. 
  
 5.1 Persons Eligible for Options. Options may be granted only to Employees, Consultants, and Directors. For purposes of the foregoing sentence,
“Employees,” “Consultants” and “Directors” shall include prospective Employees, prospective Consultants and prospective Directors to whom Options are granted in connection with written offers of an employment or other
service relationships with the Participating Company Group. Eligible persons may be granted more than one (1) Option. 
  
 5.2 Option Grant Restrictions. Any person who is not an Employee on the effective date of the grant of an Option to such person may be granted only
a Nonstatutory Stock Option. An Incentive Stock Option granted to a prospective Employee upon the condition that such person become an Employee shall be deemed granted effective on the date such person commences Service with a Participating Company,
with an exercise price determined as of such date in accordance with Section 6.1. 

 5.3 Fair Market Value Limitation. To the extent that options designated as Incentive Stock Options
(granted under all stock option plans of the Participating Company Group, including the Plan) become exercisable by an Optionee for the first time during any calendar year for stock having a Fair Market Value greater than One Hundred Thousand
Dollars ($100,000), the portions of such options which exceed such amount shall be treated as Nonstatutory Stock Options. For purposes of this Section 5.3, options designated as Incentive Stock Options shall be taken into account in the order in
which they were granted, and the Fair Market Value of stock shall be determined as of the time the option with respect to such stock is granted. If the Code is amended to provide for a different limitation from that set forth in this Section 5.3,
such different limitation shall be deemed incorporated herein effective as of the date and with respect to such Options as required or permitted by such amendment to the Code. If an Option is treated as an Incentive Stock Option in part and as a
Nonstatutory Stock Option in part by reason of the limitation set forth in this Section 5.3, the Optionee may designate which portion of such Option the Optionee is exercising. In the absence of such designation, the Optionee shall be deemed to have
exercised the Incentive Stock Option portion of the Option first. Separate certificates representing each such portion shall be issued upon the exercise of the Option. 
  
 6. TERMS AND CONDITIONS OF
OPTIONS. 
  
 Options shall
be evidenced by Option Agreements specifying the number of shares of Stock covered thereby, in such form as the Board shall from time to time establish. No Option or purported Option shall be a valid and binding obligation of the Company unless
evidenced by a fully executed Option Agreement. Option Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions: 
  
 6.1 Exercise Price. The exercise price for each Option shall be
established in the discretion of the Board; provided, however, that (a) the exercise price per share for an Incentive Stock Option shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the Option, (b) the
exercise price per share for a Nonstatutory Stock Option shall be not less than eighty-five percent (85%) of the Fair Market Value of a share of Stock on the effective date of grant of the Option, and (c) no Option granted to a Ten Percent Owner
Optionee shall have an exercise price per share less than one hundred ten percent (110%) of the Fair Market Value of a share of Stock on the effective date of grant of the Option. Notwithstanding the foregoing, an Option (whether an Incentive Stock
Option or a Nonstatutory Stock Option) may be granted with an exercise price lower than the minimum exercise price set forth above if such Option is granted pursuant to an assumption or substitution for another option in a manner qualifying under
the provisions of Section 424(a) of the Code. 
  
 6.2 Exercise
Period. Options shall be exercisable at such time or times, or upon such event or events, and subject to such terms, conditions, performance criteria, and restrictions as shall be determined by the Board and set forth in the Option Agreement

 evidencing such Option; provided, however, that (a) no Option shall be exercisable after the expiration of ten (10) years
after the effective date of grant of such Option, (b) no Incentive Stock Option granted to a Ten Percent Owner Optionee shall be exercisable after the expiration of five (5) years after the effective date of grant of such Option, (c) no Option
granted to a prospective Employee, prospective Consultant or prospective Director may become exercisable prior to the date on which such person commences Service with a Participating Company, and (d) with the exception of an Option granted to an
officer, Director or Consultant, no Option shall become exercisable at a rate less than twenty percent (20%) per year over a period of five (5) years from the effective date of grant of such Option, subject to the Optionee’s continued Service.
Subject to the foregoing, unless otherwise specified by the Board in the grant of an Option, any Option granted hereunder shall have a term of ten (10) years from the effective date of grant of the Option. 
  
 6.3 Payment of Exercise Price. 
  
 (a) Forms of Consideration Authorized. Except as otherwise
provided below, payment of the exercise price for the number of shares of Stock being purchased pursuant to any Option shall be made (i) in cash, by check or cash equivalent, (ii) by tender to the Company, or attestation to the ownership, of shares
of Stock owned by the Optionee having a Fair Market Value (as determined by the Company without regard to any restrictions on transferability applicable to such stock by reason of federal or state securities laws or agreements with an underwriter
for the Company) not less than the exercise price, (iii) by the assignment of the proceeds of a sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option (including, without limitation, through an exercise
complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System) (a “Cashless Exercise”), (iv) by the Optionee’s
promissory note in a form approved by the Company, (v) by such other consideration as may be approved by the Board from time to time to the extent permitted by applicable law, or (vi) by any combination thereof. The Board may at any time or from
time to time, by adoption of or by amendment to the standard forms of Option Agreement described in Section 7, or by other means, grant Options which do not permit all of the foregoing forms of consideration to be used in payment of the exercise
price or which otherwise restrict one or more forms of consideration. 
  
 (b) Limitations on Forms of Consideration. 
  
 (i) Tender of Stock. Notwithstanding the foregoing, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock to the extent such tender or attestation would constitute a violation of
the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. Unless otherwise provided by the Board, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of
Stock unless such shares either have been owned by the Optionee for more than six (6) months or were not acquired, directly or indirectly, from the Company. 
  
 (ii) Cashless Exercise. The Company reserves, at any and all times, the right, in the Company’s sole and absolute discretion, to establish,
decline to approve or terminate any program or procedures for the exercise of Options by means of a Cashless Exercise. 

 (iii) Payment by Promissory Note. No promissory note shall be permitted if the exercise of an
Option using a promissory note would be a violation of any law. Any permitted promissory note shall be on such terms as the Board shall determine at the time the Option is granted. The Board shall have the authority to permit or require the Optionee
to secure any promissory note used to exercise an Option with the shares of Stock acquired upon the exercise of the Option or with other collateral acceptable to the Company. Unless otherwise provided by the Board, if the Company at any time is
subject to the regulations promulgated by the Board of Governors of the Federal Reserve System or any other governmental entity affecting the extension of credit in connection with the Company’s securities, any promissory note shall comply with
such applicable regulations, and the Optionee shall pay the unpaid principal and accrued interest, if any, to the extent necessary to comply with such applicable regulations. 
  
 6.4 Tax Withholding. The Company shall have the right, but not the obligation, to deduct from the shares of Stock
issuable upon the exercise of an Option, or to accept from the Optionee the tender of, a number of whole shares of Stock having a Fair Market Value, as determined by the Company, equal to all or any part of the federal, state, local and foreign
taxes, if any, required by law to be withheld by the Participating Company Group with respect to such Option or the shares acquired upon the exercise thereof. Alternatively or in addition, in its discretion, the Company shall have the right to
require the Optionee, through payroll withholding, cash payment or otherwise, including by means of a Cashless Exercise, to make adequate provision for any such tax withholding obligations of the Participating Company Group arising in connection
with the Option or the shares acquired upon the exercise thereof. The Company shall have no obligation to deliver shares of Stock or to release shares of Stock from an escrow established pursuant to the Option Agreement until the Participating
Company Group’s tax withholding obligations have been satisfied by the Optionee. 
  
 6.5 Repurchase Rights. Shares issued under the Plan may be subject to a right of first refusal, one or more repurchase options, or other conditions and restrictions as determined by the Board in its discretion
at the time the Option is granted. The Company shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. Upon request by the
Company, each Optionee shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the Company any and all certificates representing shares of Stock acquired
hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions. 
  
 6.6 Effect of Termination of Service. 
  
 (a) Option Exercisability. Subject to earlier termination of the Option as otherwise provided herein, an Option shall be exercisable after
an Optionee’s termination of Service as follows: 

 (i) Disability. If the Optionee’s Service with the Participating Company Group is terminated
because of the Disability of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee (or the Optionee’s guardian or legal representative)
at any time prior to the expiration of six (6) months (or such longer period of time as determined by the Board, in its discretion) after the date on which the Optionee’s Service terminated, but in any event no later than the date of expiration
of the Option’s term as set forth in the Option Agreement evidencing such Option (the “Option Expiration Date”). 
  
 (ii) Death. If the Optionee’s Service with the Participating Company Group is terminated because of the death
of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee’s legal representative or other person who acquired the right to exercise the
Option by reason of the Optionee’s death at any time prior to the expiration of six (6) months (or such longer period of time as determined by the Board, in its discretion) after the date on which the Optionee’s Service terminated, but in
any event no later than the Option Expiration Date. The Optionee’s Service shall be deemed to have terminated on account of death if the Optionee dies within thirty (30) days (or such longer period of time as determined by the Board, in its
discretion) after the Optionee’s termination of Service. 
  
 (iii) Other Termination of Service. If the Optionee’s Service with the Participating Company Group terminates for any reason, except Disability or death, the Option, to the extent unexercised and exercisable by the Optionee on
the date on which the Optionee’s Service terminated, may be exercised by the Optionee within thirty (30) days (or such longer period of time as determined by the Board, in its discretion) after the date on which the Optionee’s Service
terminated, but in any event no later than the Option Expiration Date. 
  
 (b) Extension if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of an Option within the applicable time periods set forth in Section 6.6(a) is prevented by the provisions of Section 11 below, the
Option shall remain exercisable until thirty (30) days (or such longer period of time as determined by the Board, in its discretion) after the date the Optionee is notified by the Company that the Option is exercisable, but in any event no later
than the Option Expiration Date. 
  
 (c) Extension if
Optionee Subject to Section16(b). Notwithstanding the foregoing, if a sale within the applicable time periods set forth in Section 6.6(a) of shares acquired upon the exercise of the Option would subject the Optionee to suit under Section
16(b) of the Exchange Act, the Option shall remain exercisable until the earliest to occur of (i) the tenth (10th) day following the date on which a sale of such shares by the Optionee would no longer be subject to such suit, (ii) the one hundred
and ninetieth (190th) day after the Optionee’s termination of Service, or (iii) the Option Expiration Date. 
  
 7. STANDARD FORMS OF OPTION AGREEMENT. 

 
 7.1 Incentive Stock Options. Unless otherwise provided by the
Board at the time the Option is granted, an Option designated as an “Incentive Stock Option” shall comply 

 with and be subject to the terms and conditions set forth in the form of Incentive Stock Option Agreement adopted by the
Board concurrently with its adoption of the Plan and as amended from time to time. 
  
 7.2 Nonstatutory Stock Options. Unless otherwise provided by the Board at the time the Option is granted, an Option designated as a “Nonstatutory Stock Option” shall comply with and be subject to the
terms and conditions set forth in the form of Nonstatutory Stock Option Agreement adopted by the Board concurrently with its adoption of the Plan and as amended from time to time. 
  
 7.3 Authority to Vary Terms. The Board shall have the authority from time to time to vary the terms of any of the
standard forms of Option Agreement described in this Section 7 either in connection with the grant or amendment of an individual Option or in connection with the authorization of a new standard form or forms; provided, however, that the terms and
conditions of any such new, revised or amended standard form or forms of Option Agreement are not inconsistent with the terms of the Plan. 
  
 8. CHANGE IN CONTROL. 
  
 8.1 Definitions. 
  
 (a) An “Ownership Change
Event” shall be deemed to have occurred if any of the following occurs with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of
the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company; or (iv)
a liquidation or dissolution of the Company. 
  
 (b) A
“Change in Control” shall mean an Ownership Change Event or a series of related Ownership Change Events (collectively, a
“Transaction”) wherein the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their
ownership of shares of the Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting stock of the Company or
the corporation or corporations to which the assets of the Company were transferred (the “Transferee Corporation(s)”), as the case may be. For purposes of the preceding sentence, indirect
beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting stock of one or more corporations which, as a result of the Transaction, own the Company or the Transferee Corporation(s), as the case may be,
either directly or through one or more subsidiary corporations. The Board shall have the right to determine whether multiple sales or exchanges of the voting stock of the Company or multiple Ownership Change Events are related, and its determination
shall be final, binding and conclusive. 
  
 8.2 Effect of
Change in Control on Options. In the event of a Change in Control, the surviving, continuing, successor, or purchasing corporation or parent corporation 

 thereof, as the case may be (the “Acquiring Corporation”), may
either assume the Company’s rights and obligations under outstanding Options or substitute for outstanding Options substantially equivalent options for the Acquiring Corporation’s stock. For purposes of this Section 8.2, an Option shall be
deemed assumed if, following the Change in Control, the Option confers the right to purchase in accordance with its terms and conditions, for each share of Stock subject to the Option immediately prior to the Change in Control, the consideration
(whether stock, cash or other securities or property) to which a holder of a share of Stock on the effective date of the Change in Control was entitled. In the event the Acquiring Corporation elects not to assume or substitute for outstanding
Options in connection with a Change in Control, any unexercisable or unvested portions of outstanding Options held by Optionees whose Service has not terminated prior to such date shall become immediately exercisable and vested in full (and any
unvested share repurchase option shall lapse) as of the date ten (10) days prior to the date of the Change in Control. The accelerated exercise or vesting of any Option that was permissible solely by reason of this Section 8.2 shall be conditioned
upon the consummation of the Change in Control. Any Options which are neither assumed or substituted for by the Acquiring Corporation in connection with the Change in Control nor exercised as of the date of the Change in Control shall terminate and
cease to be outstanding effective as of the date of the Change in Control. Notwithstanding the foregoing, shares acquired upon exercise of an Option prior to the Change in Control and any consideration received pursuant to the Change in Control with
respect to such shares shall continue to be subject to all applicable provisions of the Option Agreement evidencing such Option except as otherwise provided in such Option Agreement. Furthermore, notwithstanding the foregoing, if the corporation the
stock of which is subject to the outstanding Options immediately prior to an Ownership Change Event described in Section 8.1(a)(i) constituting a Change in Control is the surviving or continuing corporation and immediately after such Ownership
Change Event less than fifty percent (50%) of the total combined voting power of its voting stock is held by another corporation or by other corporations that are members of an affiliated group within the meaning of Section 1504(a) of the Code
without regard to the provisions of Section 1504(b) of the Code, the outstanding Options shall not terminate unless the Board otherwise provides in its discretion. 
  
 9. PROVISION OF INFORMATION. 
  
 At least annually, copies of the Company’s balance sheet and income
statement for the just completed fiscal year shall be made available to each Optionee and purchaser of shares of Stock upon the exercise of an Option. The Company shall not be required to provide such information to key employees whose duties in
connection with the Company assure them access to equivalent information. 
  
 10. NONTRANSFERABILITY OF OPTIONS. 
  
 During the lifetime of the Optionee, an Option shall be exercisable only by the Optionee or the Optionee’s guardian or legal representative. No
Option shall be assignable or transferable by the Optionee, except by will or by the laws of descent and distribution. 

 11. COMPLIANCE WITH SECURITIES
LAW. 
  
 The grant of
Options and the issuance of shares of Stock upon exercise of Options shall be subject to compliance with all applicable requirements of federal, state and foreign law with respect to such securities. Options may not be exercised if the issuance of
shares of Stock upon exercise would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. In
addition, no Option may be exercised unless (a) a registration statement under the Securities Act shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option or (b) in the opinion of legal
counsel to the Company, the shares issuable upon exercise of the Option may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. The inability of the Company to obtain from any
regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares hereunder shall relieve the Company of any liability in respect of the failure to
issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of any Option, the Company may require the Optionee to satisfy any qualifications that may be necessary or appropriate, to
evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 
  
 12. INDEMNIFICATION. 
  

In addition to such other rights of indemnification as they may have as members of the Board or officers or employees of the Participating Company
Group, members of the Board and any officers or employees of the Participating Company Group to whom authority to act for the Board or the Company is delegated shall be indemnified by the Company against all reasonable expenses, including
attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure
to act under or in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct
in duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. 
  
 13. TERMINATION OR
AMENDMENT OF PLAN. 
  
 The Board may terminate or amend the Plan at any time. However, subject to changes in applicable law, regulations or rules that would permit otherwise, without the approval of the Company’s stockholders, there
shall be (a) no increase in the maximum aggregate number of shares of Stock that may be issued under the Plan (except by operation of the provisions of Section 4.2), (b) no change in the class of persons eligible to receive Incentive Stock Options,

 and (c) no other amendment of the Plan that would require approval of the Company’s stockholders under any
applicable law, regulation or rule. In any event, no termination or amendment of the Plan may adversely affect any then outstanding Option or any unexercised portion thereof, without the consent of the Optionee, unless such termination or amendment
is required to enable an Option designated as an Incentive Stock Option to qualify as an Incentive Stock Option or is necessary to comply with any applicable law, regulation or rule. 
  
 14. STOCKHOLDER APPROVAL. 
  
 The Plan or any increase in the maximum aggregate number of shares of Stock
issuable thereunder as provided in Section 4.1 (the “Authorized Shares”) shall be approved by the stockholders of the Company within twelve (12) months of the date of adoption thereof by the
Board. Options granted prior to stockholder approval of the Plan or in excess of the Authorized Shares previously approved by the stockholders shall become exercisable no earlier than the date of stockholder approval of the Plan or such increase in
the Authorized Shares, as the case may be.

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