Document:

Exhibit 10.4

 

 

 

December 7, 2020

 

Dr. Alan J. Tuchman

18 Sycamore Road

Mahopac, NY 10541

Dear Alan:

 

Synaptogenix Inc. (the
 “Company”), is pleased to present this offer (the “Offer”) of employment with the Company
on the terms described below. It is anticipated that you will commence your employment with the Company on December 7, 2020 (such
actual date of the start of your employment, the “Start Date”).

 

1.        Position. You will be employed as the Company’s Chief Executive Officer (“Executive”), reporting
to the Company’s Board of Directors (the “Board”). You will devote the majority of your business time
and your best professional efforts to the performance of your duties and responsibilities for the Company and its affiliates and
to abide by all policies and procedures of the Company as in effect from time to time, understanding that you have other commitments
such as your medical practice, various business ventures and other current commitments that require minimal time. As the Company’s
Chief Executive Officer, you will be expected to perform the duties of associated with such title and such other duties as may
be assigned to you from time to time by the Board.

 

2.        Term. Your employment pursuant to this Offer commences on December 7, 2020 (the “Effective Date”)
and shall continue for a period of one (1) year ending on the first anniversary of the Effective Date. Following this initial one-year
term, this Offer shall be extended automatically for successive six (6) month periods unless either party gives written notice
to the other party at least thirty (30) days prior to the end of the initial one year of the then-current extended term.

 

3.        Base Salary. You will be paid an annual base salary (the “Base Salary”) at the rate of
$222,000 per annum, payable pursuant to the Company’s regular payroll schedule in effect from time to time. This amount includes
reimbursement for medical expenses. Excluding medical coverage, the Executive will be eligible for dental, vision, disability and
other benefits consistent with your Executive position.

 

4.        Annual Bonus. In addition to the Base Salary, you will be eligible to earn an annual bonus (the “Annual
Bonus”) of up to 50% of your Base Salary. The amount of the Annual Bonus earned, if any, will be based upon your performance
and the achievement of key operational and financial performance objectives determined by the Board at the commencement of each
performance year. You must be employed on the payment date in order to receive the Annual Bonus.

 

    	

                                         

                                         1185 Avenue of the Americas, 3rd Floor
 New York, NY 10036	 	

                                         

                                         

                                         (973) 242.0005

     

    

 

5.        Equity Incentive. On the Effective Date, subject to Board approval, Executive will be granted incentive stock
options to purchase up to the equivalent number of shares of common stock equal to at least one percent (1.00%) of the Company’s
outstanding shares of common stock immediately following the spin-off of the Company (the “Option”). The Option shall
vest with respect to twenty-five percent (25%) on each of the first, second, third and fourth quarterly anniversaries from the
Effective Date, subject to the Executive’s continued employment with the Company on each such day. Employee shall be entitled
to additional options and/or equity based awards as determined in the discretion of the Board or a committee thereof. All of the
Executive's Options and subsequent options and/or equity awards will vest immediately upon (i) Executive's termination for good
reason; or (ii) termination of Executive's employment by the Company without cause. If the Executive’s employment is ended
for cause, then the Executive will no longer vest the Option.

 

The Option will be
issued from a new Company option plan to be established upon the spin-off of the Company and the Options will be subject to and
governed by such plan. The Executive shall also be entitled to any other rights and benefits and subject to any other obligations
with respect to option awards, to the extent and upon the terms provided in the new employee option plan or any agreement or other
instrument attendant thereto pursuant to which such options were granted.

 

6.       Employee
Benefits. You will be eligible to participate in the Company’s employee benefit plans currently available to all
regular employees. The Company may, in its sole discretion, discontinue or modify any such plans, programs or practices at any
time, with or without notice. Information concerning specific employee benefit plans is available upon request. In addition, you
will be eligible for twenty (20) days of vacation per year, which number will be prorated for this year based on your Start Date.
Vacation time does not carry over from year to year and accrued vacation is not paid out if your employment terminates, regardless
of the reason.

 

7.       Severance.
If you are terminated during the period that is within six (6) months from the Start Date, you will receive compensation totaling
a minimum of fifty percent (50%) of your annualized salary. If you are terminated within the period which is after six (6) months
of employment and before the one (1) year anniversary from the Start Date, you will receive a pro-rata one (1) month of compensation
in addition to any already earned compensation for that period. If you are terminated within the period which is after the one
(1) year anniversary from your Start Date, you will receive a pro-rata one (1) month of compensation in addition to any already
earned compensation and severance for that period. If the term of the Offer is extended, past the initial one (1) year term, to
eighteen (18) months from the Start Date and you are terminated during this extended six (6) month period, you will receive a pro-rata
one (1) month of compensation in addition to any already earned compensation and severance for that period.

 

8.       Restrictive
Covenants. All restrictive covenants relating to confidentiality, invention assignment, no competition, no solicitation
and other covenants will be governed by the consulting agreement signed by the Executive effective on April 1, 2018.

 

9.       Employee
Representations. You represent that: (1) you are not a party to any agreement that would prohibit you from entering into
employment with the Company; (2) no trade secret or proprietary information belonging to your previous employee will be disclosed
by you at the Company and that no such information, whether in the form of documents, memoranda, software, drawings, etc., will
be retained by you or brought with you to the Company; and (3) you have brought to the Company’s attention and provided it
with a copy of any agreement that may impact your future employment at the Company, including but not limited to any non-disclosure,
non-competition, non-solicitation or invention assignment agreements containing future work restrictions.

 

10.       Employment
Relationship. Employment with the Company is for no specific period of time. Your employment with the Company will be “at
will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without
cause or prior notice. Any contrary representations which may have been made to you are superseded by this offer. This is the full
and complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as
well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of
your employment may only be changed in an express written agreement signed by you and a member of the Board or authorized officer.

 

    	

                                         

                                         1185 Avenue of the Americas, 3rd Floor
 New York, NY 10036	 	

                                         

                                         

                                         (973) 242.0005

     

    

11.       Outside
Activities. See Paragraph 1 above for terms and conditions.

 

12.       Withholding
Taxes. All forms of compensation referred to in this letter are subject to applicable withholding and payroll taxes.

 

13.       Miscellaneous.

 

(a)              
Entire Agreement. This letter, and the Restrictive Covenants pursuant to Paragraph 8 above, sets forth the
entire agreement and understanding of the parties relating to the subject matter herein and supersedes all prior or contemporaneous
discussions, understandings and agreements, whether oral or written, between them relating to the subject matter hereof.

 

(b)              
Counterparts. This letter may be executed in any number of counterparts, each of which when so executed and
delivered shall be deemed an original, and all of which together shall constitute one and the same agreement.

 

(c)              
Electronic Delivery. The Company may, in its sole discretion, decide to deliver to you by email or any other
electronic means any documents or notices related to this letter, securities of the Company or any of its affiliates or any other
matter, including documents and/or notices required to be delivered to you by applicable securities law or any other law or the
Company’s formation or governing documents. You hereby consent to receive such documents and notices by such electronic delivery
and agree to participate through any on-line or electronic system that may be established and maintained by the Company or a third
party designated by the Company.

 

[Signature Page Follows]

 

    
    	

                                         

                                         1185 Avenue of the Americas, 3rd Floor
 New York, NY 10036	 	

                                         

                                         

                                         (973) 242.0005

     

    

 

If you wish to accept this Offer, please
sign and date and return to me.

 

	 	Very truly yours,
	 	 
	 	SYNAPTOGENIX, inc.
	 	 
	 	By:	/s/ Robert Weinstein
	 	 	          (Signature)
	 	Name:	Robert Weinstein
	 	Title:	Chief Executive Officer

 

 

 

	ACCEPTED AND AGREED:	 
	 	 
	/s/ Alan J. Tuchman	 
	(Signature)	 
	 	 
	Alan J. Tuchman	 
	 	 
	December 7, 2020	 
	Date	 

 

    	
 
 1185 Avenue of the Americas, 3rd Floor
 New York, NY 10036	 	
 
 
 (973) 242.0005SYNAPTOGENIX, INC.

2020 EQUITY INCENTIVE PLAN

 

1. DEFINITIONS.

 

Unless otherwise specified
or unless the context otherwise requires, the following terms, as used in this Synaptogenix, Inc. 2020 Equity Incentive Plan, have
the following meanings:

 

Administrator means
the Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the term Administrator
means the Committee.

 

Affiliate means
a corporation which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.

 

Agreement means
an agreement between the Company and a Participant pertaining to a Stock Right delivered pursuant to the Plan in such form as the
Administrator shall approve.

 

Board of Directors means
the Board of Directors of the Company.

 

Cause means,
with respect to a Participant (a) dishonesty with respect to the Company or any Affiliate, (b) insubordination, substantial
malfeasance or non-feasance of duty, (c) unauthorized disclosure of confidential information, (d) breach by a Participant
of any provision of any employment, consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant
and the Company or any Affiliate, and (e) conduct substantially prejudicial to the business of the Company or any Affiliate;
provided, however, that any provision in an agreement between a Participant and the Company or an Affiliate, which contains a conflicting
definition of Cause for termination and which is in effect at the time of such termination, shall supersede this definition with
respect to that Participant. The determination of the Administrator as to the existence of Cause will be conclusive on the Participant
and the Company.

 

Change of Control means
the occurrence of any of the following events:

 

Ownership.   Any
 “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “Beneficial
Owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing
50% or more of the total voting power represented by the Company’s then outstanding voting securities (excluding for this
purpose any such voting securities held by the Company or its Affiliates or by any employee benefit plan of the Company) pursuant
to a transaction or a series of related transactions which the Board of Directors does not approve; or

 

Merger/Sale of Assets.   (A)
A merger or consolidation of the Company whether or not approved by the Board of Directors, other than a merger or consolidation
which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation)
more than 50% of the total voting power represented by the voting securities of the Company or such surviving entity or parent
of such corporation, as the case may be, outstanding immediately after such merger or consolidation; or (B) the sale or disposition
by the Company of all or substantially all of the Company’s assets in a transaction requiring shareholder approval; or

 

     

     

    

 

Change in Board Composition.   A
change in the composition of the Board of Directors, as a result of which fewer than a majority of the directors are Incumbent
Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of March 9,
2017, or (B) are elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority
of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination
is in connection with an actual or threatened proxy contest relating to the election of directors to the Company). provided,
that if any payment or benefit payable hereunder upon or following a Change of Control would be required to comply with the limitations
of Section 409A(a)(2)(A)(v) of the Code in order to avoid an additional tax under Section 409A of the Code, such payment
or benefit shall be made only if such Change in Control constitutes a change in ownership or control of the Company, or a change
in ownership of the Company’s assets in accordance with Section 409A of the Code.

 

Code means
the United States Internal Revenue Code of 1986, as amended including any successor statute, regulation and guidance thereto.

 

Committee means
the committee of the Board of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions
of the Plan the composition of which shall at all times satisfy the provisions of Section 162(m) of the Code.

 

Common Stock means
shares of the Company’s common stock, $0.0001 par value per share.

 

Company means
Synaptogenix, Inc., a Delaware corporation.

 

Consultant means
any natural person who is an advisor or consultant that provides bona fide services to the Company or its Affiliates, provided
that such services are not in connection with the offer or sale of securities in a capital raising transaction, and do not directly
or indirectly promote or maintain a market for the Company’s or its Affiliates’ securities.

 

Disability or Disabled means
permanent and total disability as defined in Section 22(e)(3) of the Code.

 

Employee means
any employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or
director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights
under the Plan.

 

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

 

Fair Market Value of
a Share of Common Stock means:

 

     

     

    

 

If the Common Stock
is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for
the Common Stock, the closing or, if not applicable, the last price of the Common Stock on the composite tape or other comparable
reporting system for the trading day on the applicable date and if such applicable date is not a trading day, the last market trading
day prior to such date;

 

If the Common Stock
is not traded on a national securities exchange but is traded on the over-the-counter market, if sales prices are not regularly
reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are
regularly reported, the mean between the bid and the asked price for the Common Stock at the close of trading in the over-the-counter
market for the trading day on which Common Stock was traded on the applicable date and if such applicable date is not a trading
day, the last market trading day prior to such date; and

 

If the Common Stock
is neither listed on a national securities exchange nor traded in the over-the-counter market, such value as the Administrator,
in good faith, shall determine in compliance with applicable laws.

 

ISO means
an option intended to qualify as an incentive stock option under Section 422 of the Code.

 

Non-Qualified Option means
an option which is not intended to qualify as an ISO.

 

Option means
an ISO or Non-Qualified Option granted under the Plan.

 

Participant means
an Employee, director or Consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan.
As used herein, “Participant” shall include “Participant’s Survivors” where the context requires.

 

Performance Based
Award means a Stock Grant or Stock-Based Award which vests based on the attainment of written Performance Goals as set
forth in Paragraph 9 hereof.

 

Performance Goals means
performance goals based on one or more of the following criteria: (i) pre-tax income or after-tax income; (ii) income or earnings
including operating income, earnings before or after taxes, interest, depreciation, amortization, and/or extraordinary or special
items; (iii) net income excluding amortization of intangible assets, depreciation and impairment of goodwill and intangible assets
and/or excluding charges attributable to the adoption of new accounting pronouncements; (iv) earnings or book value per share (basic
or diluted); (v) return on assets (gross or net), return on investment, return on capital, return on invested capital or return
on equity; (vi) return on revenues; (vii) cash flow, free cash flow, cash flow return on investment (discounted or otherwise),
net cash provided by operations, or cash flow in excess of cost of capital; (viii) economic value created; (ix) operating margin
or profit margin; (x) stock price or total shareholder return; (xi) income or earnings from continuing operations; (xii) cost
targets, reductions and savings, expense management, productivity and efficiencies; (xiii) operational objectives, consisting of
one or more objectives based on achieving progress in research and development programs or achieving regulatory milestones related
to development and or approval of products; and (xiv) strategic business criteria, consisting of one or more objectives based on
meeting specified market penetration or market share of one or more products or customers, geographic business expansion, customer
satisfaction, employee satisfaction, human resources management, supervision of litigation, information technology, and goals relating
to acquisitions, divestitures, joint ventures and similar transactions. Where applicable, the Performance Goals may be expressed
in terms of a relative measure against a set of identified peer group companies, attaining a specified level of the particular
criterion or the attainment of a percentage increase or decrease in the particular criterion, and may be applied to one or
more of the Company or an Affiliate of the Company, or a division or strategic business unit of the Company, all as determined
by the Committee. The Performance Goals may include a threshold level of performance below which no Performance-Based Award will
be issued or no vesting will occur, levels of performance at which Performance-Based Awards will be issued or specified vesting
will occur, and a maximum level of performance above which no additional issuances will be made or at which full vesting will occur.
Each of the foregoing Performance Goals shall be evaluated in an objectively determinable manner in accordance with Section 162(m)
of the Code and in accordance with generally accepted accounting principles where applicable, unless otherwise specified by the
Committee, and shall be subject to certification by the Committee. The Committee shall have the authority to make equitable adjustments
to the Performance Goals in recognition of unusual or non-recurring events affecting the Company or any Affiliate or the financial
statements of the Company or any Affiliate, in response to changes in applicable laws or regulations, or to account for items of
gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal
of a segment of a business or related to a change in accounting principles provided that any such change shall at all times satisfy
the provisions of Section 162(m) of the Code.

 

     

     

    

 

Plan means
this Synaptogenix, Inc. 2020 Equity Incentive Plan.

 

Securities Act means
the Securities Act of 1933, as amended.

 

Shares means
shares of the Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into
which the Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued
under the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both.

 

Stock-Based Award means
a grant by the Company under the Plan of an equity award or an equity based award which is not an Option or a Stock Grant, which
the Committee may, in its sole discretion, structure to qualify in whole or in part as “performance-based compensation”
under Section 162(m) of the Code.

 

Stock Grant means
a grant by the Company of Shares under the Plan, which the Committee may, in its sole discretion, structure to qualify in whole
or in part as “performance-based compensation” under Section 162(m) of the Code.

 

Stock Right means
a right to Shares or the value of Shares of the Company granted pursuant to the Plan — an ISO, a Non-Qualified
Option, a Stock Grant or a Stock-Based Award.

 

Survivor means
a deceased Participant’s legal representatives and/or any person or persons who acquired the Participant’s rights to
a Stock Right by will or by the laws of descent and distribution.

 

     

     

    

 

2. PURPOSES OF THE PLAN.

 

The Plan is intended
to encourage ownership of Shares by Employees and directors of and certain Consultants to the Company and its Affiliates in order
to attract and retain such people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional
incentive for them to promote the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs, Non-Qualified
Options, Stock Grants and Stock-Based Awards.

 

3. SHARES SUBJECT TO THE PLAN.

 

		(a)	The number of Shares which may be issued from time to time pursuant to this Plan shall be 1,000,000
shares of Common Stock.

 

		(b)	If an Option ceases to be “outstanding”, in whole or in part (other than by exercise),
or if the Company shall reacquire (at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or
Stock-Based Award, or if any Stock Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not
being issued, the unissued or reacquired Shares which were subject to such Stock Right shall again be available for issuance from
time to time pursuant to this Plan. Notwithstanding the foregoing, if a Stock Right is exercised, in whole or in part, by tender
of Shares or if the Company or an Affiliate’s tax withholding obligation is satisfied by withholding Shares, the number of
Shares deemed to have been issued under the Plan for purposes of the limitation set forth in Paragraph 3(a) above shall be the
number of Shares that were subject to the Stock Right or portion thereof, and not the net number of Shares actually issued. However,
in the case of ISOs, the foregoing provisions shall be subject to any limitations under the Code.

 

4. ADMINISTRATION OF THE PLAN.

 

The Administrator of
the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee,
in which case the Committee shall be the Administrator. Notwithstanding the foregoing, the Board of Directors may not take any
action that would cause any outstanding Stock Right that would otherwise qualify as performance-based compensation under Section 162(m)
of the Code to fail to so qualify. Subject to the provisions of the Plan, the Administrator is authorized to:

 

		(a)	Interpret the provisions of the Plan and all Stock Rights and to make all rules and determinations
which it deems necessary or advisable for the administration of the Plan;

 

		(b)	Determine which Employees, directors and Consultants shall be granted Stock Rights;

 

     

     

    

 

		(c)	Determine the number of Shares for which a Stock Right or Stock Rights shall be granted, provided,
however, that in no event shall Stock Rights with respect to more than 300,000 Shares be granted to any Participant in any fiscal
year;

 

		(d)	Specify the terms and conditions upon which a Stock Right or Stock Rights may be granted, provided
however, except in the case of death, disability, retirement or Change of Control, Stock Rights shall not vest, and any right of
the Company to restrict or reacquire Shares subject to a Stock Grant shall not lapse, less than one (1) year from the date
of grant, provided that time-based vesting may accrue incrementally over such one-year period; and provided further that, notwithstanding
the foregoing, Stock Rights may be granted to non-employee directors having time-based vesting of less than one (1) year from
the date of grant so long as no more than ten percent (10%) of the Shares reserved for issuance under the Plan pursuant to
Paragraph 3(a) above (as adjusted under Paragraph 25 of this Plan) may be granted in the aggregate pursuant to such awards; in
addition no dividends or dividend equivalents shall be paid on any Stock Right prior to the vesting of the underlying shares;

 

		(e)	Determine Performance Goals no later than such time as required to ensure that a Performance-Based
Award which is intended to comply with the requirements of Section 162(m) of the Code so complies;

 

		(f)	Amend any term or condition of any outstanding Stock Right, other than reducing the exercise price
or purchase price or extending the expiration date of an Option, provided that (i) such term or condition as amended is not
prohibited by the Plan; (ii) any such amendment shall not impair the rights of a Participant under any Stock Right previously granted
without such Participant’s consent or in the event of death of the Participant the Participant’s Survivors; and (iii)
any such amendment shall be made only after the Administrator determines whether such amendment would cause any adverse tax consequences
to the Participant, including, but not limited to, the annual vesting limitation contained in Section 422(d) of the Code and
described in Paragraph 6(b)(iv) below with respect to ISOs and pursuant to Section 409A of the Code;

 

		(g)	Make any adjustments in the Performance Goals included in any Performance-Based Awards provided
that such adjustments comply with the requirements of Section 162(m) of the Code; and

 

		(h)	Adopt any sub-plans applicable to residents of any specified jurisdiction as it deems necessary
or appropriate in order to comply with or take advantage of any tax or other laws applicable to the Company, any Affiliate or to
Participants or to otherwise facilitate the administration of the Plan, which sub-plans may include additional restrictions or
conditions applicable to Stock Rights or Shares issuable pursuant to a Stock Right;

 

provided, however, that all such
interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of not causing any adverse
tax consequences under Section 409A of the Code and preserving the tax status under Section 422 of the Code of those
Options which are designated as ISOs and in accordance with Section 162(m) of the Code for all other Stock Rights to which
the Committee has determined Section 162(m) is applicable. Subject to the foregoing, the interpretation and construction by
the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be final, unless otherwise determined
by the Board of Directors, if the Administrator is the Committee. In addition, if the Administrator is the Committee, the Board
of Directors may take any action under the Plan that would otherwise be the responsibility of the Committee.

 

     

     

    

 

To the extent permitted
under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities and powers
to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected
by it. The Board of Directors or the Committee may revoke any such allocation or delegation at any time. Notwithstanding the foregoing,
only the Board of Directors or the Committee shall be authorized to grant a Stock Right to any director of the Company or to any
 “officer” of the Company as defined by Rule 16a-1 under the Exchange Act.

 

5. ELIGIBILITY FOR PARTICIPATION.

 

The Administrator will,
in its sole discretion, name the Participants in the Plan; provided, however, that each Participant must be an Employee, director
or Consultant of the Company or of an Affiliate at the time a Stock Right is granted. Notwithstanding the foregoing, the Administrator
may authorize the grant of a Stock Right to a person not then an Employee, director or Consultant of the Company or of an Affiliate;
provided, however, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become
a Participant at or prior to the time of the execution of the Agreement evidencing such Stock Right. ISOs may be granted only to
Employees who are deemed to be residents of the United States for tax purposes. Non-Qualified Options, Stock Grants and Stock-Based
Awards may be granted to any Employee, director or Consultant of the Company or an Affiliate. The granting of any Stock Right to
any individual shall neither entitle that individual to, nor disqualify him or her from, participation in any other grant of Stock
Rights or any grant under any other benefit plan established by the Company or any Affiliate for Employees, directors or Consultants.

 

6. TERMS AND CONDITIONS OF OPTIONS.

 

Each Option shall be
set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the
Company, by the Participant. The Administrator may provide that Options be granted subject to such terms and conditions, consistent
with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including, without
limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto. The Option Agreements
shall be subject to at least the following terms and conditions:

 

		(a)	Non-Qualified Options:   Each Option intended to be a Non-Qualified Option
shall be subject to the terms and conditions which the Administrator determines to be appropriate and in the best interest of the
Company, subject to the following minimum standards for any such Non-Qualified Option:

 

     

     

    

 

(i) Exercise
Price:   Each Option Agreement shall state the exercise price (per share) of the Shares covered by each Option,
which exercise price shall be determined by the Administrator and shall be at least equal to the Fair Market Value per share of
Common Stock on the date of grant of the Option.

 

(ii) Number
of Shares:   Each Option Agreement shall state the number of Shares to which it pertains.

 

(iii) Vesting:   Each
Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised,
and may provide that the Option rights accrue or become exercisable in installments over a period of months or years,
or upon the occurrence of certain performance conditions or the attainment of stated goals or events.

 

(iv) Additional
Conditions:   Exercise of any Option may be conditioned upon the Participant’s execution of a Share purchase
agreement in form satisfactory to the Administrator providing for certain protections for the Company and its other shareholders,
including requirements that:

 

		A.	The Participant’s or the Participant’s Survivors’ right to sell or transfer the
Shares may be restricted; and

 

		B.	The Participant or the Participant’s Survivors may be required to execute letters of investment
intent and must also acknowledge that the Shares will bear legends noting any applicable restrictions.

 

(v) Term
of Option:   Each Option shall terminate not more than ten years from the date of the grant or at such
earlier time as the Option Agreement may provide.

 

		(b)	ISOs:   Each Option intended to be an ISO shall be issued only to an Employee
who is deemed to be a resident of the United States for tax purposes, and shall be subject to the following terms and conditions,
with such additional restrictions or changes as the Administrator determines are appropriate but not in conflict with Section 422
of the Code and relevant regulations and rulings of the Internal Revenue Service:

 

(i) Minimum
standards:   The ISO shall meet the minimum standards required of Non-Qualified Options, as described in Paragraph
6(a) above, except clause (i) and (v) thereunder.

 

(ii) Exercise
Price:   Immediately before the ISO is granted, if the Participant owns, directly or by reason of the applicable
attribution rules in Section 424(d) of the Code:

 

		A.	10% or less of the total combined voting power of all classes of stock of the
Company or an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than 100% of the Fair
Market Value per share of the Common Stock on the date of grant of the Option; or

 

     

     

    

 

		B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate,
the exercise price per share of the Shares covered by each ISO shall not be less than 110% of the Fair Market Value per share of
the Common Stock on the date of grant of the Option.

 

(iii) Term of Option:   For
Participants who own:

 

		A.	10% or less of the total combined voting power of all classes of stock of the Company
or an Affiliate, each ISO shall terminate not more than ten years from the date of the grant or at such earlier time as the
Option Agreement may provide; or

 

		B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate,
each ISO shall terminate not more than five years from the date of the grant or at such earlier time as the Option Agreement
may provide.

 

(iv) Limitation
on Yearly Exercise:   The Option Agreements shall restrict the amount of ISOs which may become exercisable in
any calendar year (under this or any other ISO plan of the Company or an Affiliate) so that the aggregate Fair Market Value (determined
on the date each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant
in any calendar year does not exceed $100,000.

 

7. TERMS AND CONDITIONS OF STOCK
GRANTS.

 

Each Stock Grant to
a Participant shall state the principal terms in an Agreement duly executed by the Company and, to the extent required by law or
requested by the Company, by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain
terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the
following minimum standards:

 

		(a)	Each Agreement shall state the purchase price per share, if any, of the Shares covered by each
Stock Grant, which purchase price shall be determined by the Administrator but shall not be less than the minimum consideration
required by the General Corporation Law of the State of Delaware, if any, on the date of the grant of the Stock Grant;

 

		(b)	Each Agreement shall state the number of Shares to which the Stock Grant pertains; and

 

		(c)	Each Agreement shall include the terms of any right of the Company to restrict or reacquire the
Shares subject to the Stock Grant, including the time period or attainment of Performance Goals or such other performance criteria
upon which such rights shall accrue and the purchase price therefor, if any.

 

8. TERMS AND CONDITIONS OF OTHER
STOCK-BASED AWARDS.

 

The Administrator shall
have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the Administrator
may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible
into Shares and the grant of stock appreciation rights, phantom stock awards or stock units. The principal terms of each Stock-Based
Award shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company,
by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which
the Administrator determines to be appropriate and in the best interest of the Company. Each Agreement shall include the terms
of any right of the Company including the right to terminate the Stock-Based Award without the issuance of Shares, the terms of
any vesting conditions, Performance Goals or events upon which Shares shall be issued. Under no circumstances may the Agreement
covering stock appreciation rights (a) have an exercise price (per share) that is less than the Fair Market Value per share
of Common Stock on the date of grant or (b) expire more than ten years following the date of grant.

 

     

     

    

 

The Company intends
that the Plan and any Stock-Based Awards granted hereunder be exempt from the application of Section 409A of the Code or meet
the requirements of paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code, to the extent
applicable, and be operated in accordance with Section 409A so that any compensation deferred under any Stock-Based Award
(and applicable investment earnings) shall not be included in income under Section 409A of the Code. Any ambiguities in the
Plan shall be construed to effect the intent as described in this Paragraph 8.

 

9. PERFORMANCE BASED AWARDS.

 

Notwithstanding anything
to the contrary herein, during any period when Section 162(m) of the Code is applicable to the Company and the Plan, Stock
Rights granted under Paragraph 7 and Paragraph 8 may be granted by the Committee in a manner which is deductible by the Company
under Section 162(m) of the Code (“Performance-Based Awards”). A Participant’s Performance-Based Award shall
be determined based on the attainment of written Performance Goals, which must be objective and approved by the Committee for a
performance period of between one and five years established by the Committee (I) while the outcome for that performance period
is substantially uncertain and (II) no more than 90 days after the commencement of the performance period to which the Performance
Goal relates or, if less, the number of days which is equal to 25% of the relevant performance period. The Committee shall determine
whether, with respect to a performance period, the applicable Performance Goals have been met with respect to a given Participant
and, if they have, to so certify and ascertain the amount of the applicable Performance-Based Award. No Performance-Based Awards
will be issued for such performance period until such certification is made by the Committee. The number of shares issued in respect
of a Performance-Based Award to a given Participant may be less than the amount determined by the applicable Performance Goal formula,
at the discretion of the Committee. The number of shares issued in respect of a Performance-Based Award determined by the Committee
for a performance period shall be paid to the Participant at such time as determined by the Committee in its sole discretion after
the end of such performance period. Nothing in this Section shall prohibit the Company from granting Stock-Based Awards subject
to performance criteria that do not comply with this Paragraph.

 

10. EXERCISE OF OPTIONS AND ISSUE
OF SHARES.

 

An Option (or any part
or installment thereof) shall be exercised by giving written notice to the Company or its designee (in a form acceptable to the
Administrator, which may include electronic notice), together with provision for payment of the aggregate exercise price in accordance
with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set
forth in the Option Agreement. Such notice shall be signed by the person exercising the Option (which signature may be provided
electronically in a form acceptable to the Administrator), shall state the number of Shares with respect to which the Option is
being exercised and shall contain any representation required by the Plan or the Option Agreement. Payment of the exercise price
for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check;
or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for at least six months
(if required to avoid negative accounting treatment) having a Fair Market Value equal as of the date of the exercise to the aggregate
cash exercise price for the number of Shares as to which the Option is being exercised; or (c) at the discretion of the Administrator,
by having the Company retain from the Shares otherwise issuable upon exercise of the Option, a number of Shares having a Fair Market
Value equal as of the date of exercise to the aggregate exercise price for the number of Shares as to which the Option is being
exercised; or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established with
a securities brokerage firm, and approved by the Administrator; or (e) at the discretion of the Administrator, by any combination
of  (a), (b), (c) and (d) above or (f) at the discretion of the Administrator, by payment of such other lawful
consideration as the Administrator may determine. Notwithstanding the foregoing, the Administrator shall accept only such payment
on exercise of an ISO as is permitted by Section 422 of the Code.

 

The Company shall then
reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s
Survivors, as the case may be). In determining what constitutes “reasonably promptly,” it is expressly understood that
the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect
to the Shares prior to their issuance. The Shares shall, upon delivery, be fully paid, non-assessable Shares.

 

11. PAYMENT IN CONNECTION WITH
THE ISSUANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

 

Any Stock Grant or Stock-Based
Award requiring payment of a purchase price for the Shares as to which such Stock Grant or Stock-Based Award is being granted shall
be made (a) in United States dollars in cash or by check; or (b) at the discretion of the Administrator, through delivery
of shares of Common Stock held for at least six months (if required to avoid negative accounting treatment) and having a Fair
Market Value equal as of the date of payment to the purchase price of the Stock Grant or Stock-Based Award; or (c) at the
discretion of the Administrator, by any combination of  (a) and (b) above; or (d) at the discretion of the
Administrator, by payment of such other lawful consideration as the Administrator may determine.

 

     

     

    

 

The Company shall when
required by the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant or Stock-Based Award
was made to the Participant (or to the Participant’s Survivors, as the case may be), subject to any escrow provision set
forth in the applicable Agreement. In determining what constitutes “reasonably promptly,” it is expressly understood
that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect
to the Shares prior to their issuance.

 

12. RIGHTS AS A SHAREHOLDER.

 

No Participant to whom
a Stock Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock Right except
after due exercise of an Option or issuance of Shares as set forth in any Agreement, tender of the aggregate exercise or purchase
price, if any, for the Shares being purchased and registration of the Shares in the Company’s share register in the name
of the Participant.

 

13. ASSIGNABILITY AND TRANSFERABILITY
OF STOCK RIGHTS.

 

By its terms, a Stock
Right granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of descent
and distribution, or (ii) as approved by the Administrator in its discretion and set forth in the applicable Agreement provided
that no Stock Right may be transferred by a Participant for value. Notwithstanding the foregoing, an ISO transferred except in
compliance with clause (i) above shall no longer qualify as an ISO. The designation of a beneficiary of a Stock Right by a
Participant, with the prior approval of the Administrator and in such form as the Administrator shall prescribe, shall not be deemed
a transfer prohibited by this Paragraph. Except as provided above during the Participant’s lifetime a Stock Right shall only
be exercisable by or issued to such Participant (or his or her legal representative) and shall not be assigned, pledged or hypothecated
in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any
attempted transfer, assignment, pledge, hypothecation or other disposition of any Stock Right or of any rights granted thereunder
contrary to the provisions of this Plan, or the levy of any attachment or similar process upon a Stock Right, shall be null and
void.

 

14. EFFECT ON OPTIONS OF TERMINATION
OF SERVICE OTHER THAN FOR CAUSE OR DEATH OR DISABILITY.

 

Except as otherwise
provided in a Participant’s Option Agreement, in the event of a termination of service (whether as an Employee, director
or Consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:

 

		(a)	A Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate
(for any reason other than termination for Cause, Disability, or death for which events there are special rules in Paragraphs 15,
16, and 17, respectively), may exercise any Option granted to him or her to the extent that the Option is exercisable on the date
of such termination of service, but only within such term as the Administrator has designated in a Participant’s Option Agreement.

 

     

     

    

 

		(b)	Except as provided in Subparagraph (c) below, or Paragraph 16 or 17, in no event may an Option
intended to be an ISO, be exercised later than three months after the Participant’s termination of employment.

 

		(c)	The provisions of this Paragraph, and not the provisions of Paragraph 16 or 17, shall apply to
a Participant who subsequently becomes Disabled or dies after the termination of employment, director status or consultancy; provided,
however, in the case of a Participant’s Disability or death within three months after the termination of employment,
director status or consultancy, the Participant or the Participant’s Survivors may exercise the Option within one year after
the date of the Participant’s termination of service, but in no event after the date of expiration of the term of the Option.

 

		(d)	Notwithstanding anything herein to the contrary, if subsequent to a Participant’s termination
of employment, termination of director status or termination of consultancy, but prior to the exercise of an Option, the Administrator
determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which would
constitute Cause, then such Participant shall forthwith cease to have any right to exercise any Option.

 

		(e)	A Participant to whom an Option has been granted under the Plan who is absent from the Company
or an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who
is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence
alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate,
except as the Administrator may otherwise expressly provide; provided, however, that, for ISOs, any leave of absence granted by
the Administrator of greater than ninety days, unless pursuant to a contract or statute that guarantees the right to reemployment,
shall cause such ISO to become a Non-Qualified Option on the 181st day following such leave of absence.

 

		(f)	Except as required by law or as set forth in a Participant’s Option Agreement, Options granted
under the Plan shall not be affected by any change of a Participant’s status within or among the Company and any Affiliates,
so long as the Participant continues to be an Employee, director or Consultant of the Company or any Affiliate.

 

15. EFFECT ON OPTIONS OF TERMINATION
OF SERVICE FOR CAUSE.

 

Except as otherwise
provided in a Participant’s Option Agreement, the following rules apply if the Participant’s service (whether as an
Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause prior to the time that all his or her
outstanding Options have been exercised:

 

     

     

    

 

		(a)	All outstanding and unexercised Options as of the time the Participant is notified his or her service
is terminated for Cause will immediately be forfeited.

 

		(b)	Cause is not limited to events which have occurred prior to a Participant’s termination of
service, nor is it necessary that the Administrator’s finding of Cause occur prior to termination. If the Administrator determines,
subsequent to a Participant’s termination of service but prior to the exercise of an Option, that either prior or subsequent
to the Participant’s termination the Participant engaged in conduct which would constitute Cause, then the right to exercise
any Option is forfeited.

 

16. EFFECT ON OPTIONS OF TERMINATION
OF SERVICE FOR DISABILITY.

 

Except as otherwise
provided in a Participant’s Option Agreement:

 

		(a)	A Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate
by reason of Disability may exercise any Option granted to such Participant to the extent that the Option has become exercisable
but has not been exercised on the date of the Participant’s termination of service due to Disability; and in the event rights
to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of the Participant’s
termination of service due to Disability of any additional vesting rights that would have accrued on the next vesting date had
the Participant not become Disabled. The proration shall be based upon the number of days accrued in the current vesting period
prior to the date of the Participant’s termination of service due to Disability.

 

		(b)	A Disabled Participant may exercise the Option only within the period ending one year after the
date of the Participant’s termination of service due to Disability, notwithstanding that the Participant might have been
able to exercise the Option as to some or all of the Shares on a later date if the Participant had not been terminated due to Disability
and had continued to be an Employee, director or Consultant or, if earlier, within the originally prescribed term of the Option.

 

		(c)	The Administrator shall make the determination both of whether Disability has occurred and the
date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such
Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined
by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.

 

17. EFFECT ON OPTIONS OF DEATH
WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise
provided in a Participant’s Option Agreement:

 

		(a)	In the event of the death of a Participant while the Participant is an Employee, director or Consultant
of the Company or of an Affiliate, such Option may be exercised by the Participant’s Survivors to the extent that the Option
has become exercisable but has not been exercised on the date of death; and in the event rights to exercise the Option accrue periodically,
to the extent of a pro rata portion through the date of death of any additional vesting rights that would have accrued on
the next vesting date had the Participant not died. The proration shall be based upon the number of days accrued in the current
vesting period prior to the Participant’s date of death.

 

     

     

    

 

		(b)	If the Participant’s Survivors wish to exercise the Option, they must take all necessary
steps to exercise the Option within one year after the date of death of such Participant, notwithstanding that the decedent might
have been able to exercise the Option as to some or all of the Shares on a later date if he or she had not died and had continued
to be an Employee, director or Consultant or, if earlier, within the originally prescribed term of the Option.

 

18. EFFECT OF TERMINATION OF SERVICE
ON STOCK GRANTS AND STOCK-BASED AWARDS.

 

In the event of a termination
of service (whether as an Employee, director or Consultant) with the Company or an Affiliate for any reason before the Participant
has accepted a Stock Grant or a Stock-Based Award and paid the purchase price, if required, such grant shall terminate.

 

For purposes of this
Paragraph 18 and Paragraph 19 below, a Participant to whom a Stock Grant or a Stock-Based Award has been issued under the Plan
who is absent from work with the Company or with an Affiliate because of temporary disability (any disability other than a Disability
as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence,
be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy
with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide.

 

In addition, for purposes
of this Paragraph 18 and Paragraph 19 below, any change of employment or other service within or among the Company and any Affiliates
shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be
an Employee, director or Consultant of the Company or any Affiliate.

 

19. EFFECT ON STOCK GRANTS AND
STOCK-BASED AWARDS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE, DEATH or DISABILITY.

 

Except as otherwise
provided in a Participant’s Agreement, in the event of a termination of service for any reason (whether as an Employee, director
or Consultant), other than termination for Cause, death or Disability for which there are special rules in Paragraphs 20, 21, and
22 below, before all forfeiture provisions or Company rights of repurchase shall have lapsed, then the Company shall have the right
to cancel or repurchase that number of Shares subject to a Stock Grant or Stock-Based Award as to which the Company’s forfeiture
or repurchase rights have not lapsed.

 

     

     

    

 

20. EFFECT ON STOCK GRANTS AND
STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR CAUSE.

 

Except as otherwise
provided in a Participant’s Agreement, the following rules apply if the Participant’s service (whether as an Employee,
director or Consultant) with the Company or an Affiliate is terminated for Cause:

 

		(a)	All Shares subject to any Stock Grant or Stock-Based Award that remain subject to forfeiture provisions
or as to which the Company shall have a repurchase right shall be immediately forfeited to the Company as of the time the Participant
is notified his or her service is terminated for Cause.

 

		(b)	Cause is not limited to events which have occurred prior to a Participant’s termination of
service, nor is it necessary that the Administrator’s finding of Cause occur prior to termination. If the Administrator determines,
subsequent to a Participant’s termination of service, that either prior or subsequent to the Participant’s termination
the Participant engaged in conduct which would constitute Cause, then all Shares subject to any Stock Grant or Stock-Based Award
that remained subject to forfeiture provisions or as to which the Company had a repurchase right on the date of termination shall
be immediately forfeited to the Company.

 

21. EFFECT ON STOCK GRANTS AND
STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise
provided in a Participant’s Agreement, the following rules apply if a Participant ceases to be an Employee, director or Consultant
of the Company or of an Affiliate by reason of Disability: to the extent the forfeiture provisions or the Company’s rights
of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided, however, that in the event such forfeiture
provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion
of the Shares subject to such Stock Grant or Stock-Based Award through the date of Disability as would have lapsed had the Participant
not become Disabled. The proration shall be based upon the number of days accrued prior to the date of Disability.

 

The Administrator shall
make the determination both as to whether Disability has occurred and the date of its occurrence (unless a procedure for such determination
is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such
determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost
of which examination shall be paid for by the Company.

 

22. EFFECT ON STOCK GRANTS AND
STOCK-BASED AWARDS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise
provided in a Participant’s Agreement, the following rules apply in the event of the death of a Participant while the Participant
is an Employee, director or Consultant of the Company or of an Affiliate: to the extent the forfeiture provisions or the Company’s
rights of repurchase have not lapsed on the date of death, they shall be exercisable; provided, however, that in the event such
forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata
portion of the Shares subject to such Stock Grant or Stock-Based Award through the date of death as would have lapsed had the Participant
not died. The proration shall be based upon the number of days accrued prior to the Participant’s date of death.

 

     

     

    

 

23. PURCHASE FOR INVESTMENT.

 

Unless the offering
and sale of the Shares shall have been effectively registered under the Securities Act, the Company shall be under no obligation
to issue Shares under the Plan unless and until the following conditions have been fulfilled:

 

		(a)	The person who receives a Stock Right shall warrant to the Company, prior to the receipt of Shares,
that such person is acquiring such Shares for his or her own account, for investment, and not with a view to, or for sale in connection
with, the distribution of any such Shares, in which event the person acquiring such Shares shall be bound by the provisions of
the following legend (or a legend in substantially similar form) which shall be endorsed upon the certificate evidencing the Shares
issued pursuant to such exercise or such grant of a Stock Right:

 

“The shares
represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person,
including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under
the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that
an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable
state securities laws.”

 

		(b)	At the discretion of the Administrator, the Company shall have received an opinion of its counsel
that the Shares may be issued in compliance with the Securities Act without registration thereunder.

 

24. DISSOLUTION OR LIQUIDATION
OF THE COMPANY.

 

Upon the dissolution
or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all
Stock Grants and Stock-Based Awards which have not been accepted, to the extent required under the applicable Agreement, will terminate
and become null and void; provided, however, that if the rights of a Participant or a Participant’s Survivors have not otherwise
terminated and expired, the Participant or the Participant’s Survivors will have the right immediately prior to such dissolution
or liquidation to exercise or accept any Stock Right to the extent that the Stock Right is exercisable or subject to acceptance
as of the date immediately prior to such dissolution or liquidation. Upon the dissolution or liquidation of the Company, any outstanding
Stock-Based Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the
applicable Agreement.

 

     

     

    

 

25. ADJUSTMENTS.

 

Upon the occurrence
of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall
be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement.

 

		(a)	Stock Dividends and Stock Splits.   If  (i) the shares of Common
Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common
Stock as a stock dividend on its outstanding Common Stock, or (ii) additional shares or new or different shares or other securities
of the Company or other non-cash assets are distributed with respect to such shares of Common Stock, each Stock Right and the number
of shares of Common Stock deliverable thereunder shall be appropriately increased or decreased proportionately, and appropriate
adjustments shall be made including, in the exercise or purchase price per share, to reflect such events. The number of Shares
subject to the limitations in Paragraph 3(a) and 4(c) shall also be proportionately adjusted upon the occurrence of such events
and the Performance Goals applicable to outstanding Performance-Based Awards.

 

		(b)	Corporate Transactions.   If the Company is to be consolidated with or acquired
by another entity in a merger, consolidation, or sale of all or substantially all of the Company’s assets or the acquisition
of all of the outstanding voting stock of the Company in a single transaction or a series of related transactions by a single entity
other than a transaction to merely change the state of incorporation (a “Corporate Transaction”), the Administrator
or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”),
shall, as to outstanding Options, either (i) make appropriate provision for the continuation of such Options by substituting
on an equitable basis for the Shares then subject to such Options either the consideration payable with respect to the outstanding
shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity; or (ii)
upon written notice to the Participants, provide that such Options must be exercised (either (A) to the extent then exercisable
or, (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this
Subparagraph), within a specified number of days of the date of such notice, at the end of which period such Options which have
not been exercised shall terminate; or (iii) terminate such Options in exchange for payment of an amount equal to the consideration
payable upon consummation of such Corporate Transaction to a holder of the number of shares of Common Stock into which such Option
would have been exercisable (either (A) to the extent then exercisable or, (B) at the discretion of the Administrator, any such
Options being made partially or fully exercisable for purposes of this Subparagraph) less the aggregate exercise
price thereof. For purposes of determining the payments to be made pursuant to Subclause (iii) above, in the case of a Corporate
Transaction the consideration for which, in whole or in part, is other than cash, the consideration other than cash shall be valued
at the fair value thereof as determined in good faith by the Board of Directors.

 

Notwithstanding
the foregoing, in the event the Corporate Transaction also constitutes a Change of Control, then all Options outstanding on the
date of the Corporate Transaction shall automatically become fully vested and exercisable.

 

     

     

    

 

With respect
to outstanding Stock Grants, the Administrator or the Successor Board, shall make appropriate provision for the continuation of
such Stock Grants on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock
Grants either the consideration payable with respect to the outstanding Shares of Common Stock in connection with the Corporate
Transaction or securities of any successor or acquiring entity. In lieu of the foregoing, in connection with any Corporate Transaction,
the Administrator may provide that, upon consummation of the Corporate Transaction, each outstanding Stock Grant shall be terminated
in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder
of the number of shares of Common Stock comprising such Stock Grant (to the extent such Stock Grant is no longer subject to any
forfeiture or repurchase rights then in effect or, at the discretion of the Administrator, all forfeiture and repurchase rights
being waived upon such Corporate Transaction).

 

In taking any
of the actions permitted under this Paragraph 25(b), the Administrator shall not be obligated by the Plan to treat all Stock Rights,
all Stock Rights held by a Participant, or all Stock Rights of the same type, identically.

 

		(c)	Recapitalization or Reorganization.   In the event of a recapitalization
or reorganization of the Company other than a Corporate Transaction pursuant to which securities of the Company or of another corporation
are issued with respect to the outstanding shares of Common Stock, a Participant upon exercising an Option or accepting a Stock
Grant after the recapitalization or reorganization shall be entitled to receive for the price paid upon such exercise or acceptance
if any, the number of replacement securities which would have been received if such Option had been exercised or Stock Grant accepted
prior to such recapitalization or reorganization.

 

		(d)	Adjustments to Stock-Based Awards.   Upon the happening of any of the events
described in Subparagraphs (a), (b) or (c) above, any outstanding Stock-Based Award shall be appropriately adjusted to
reflect the events described in such Subparagraphs. The Administrator or the Successor Board shall determine the specific adjustments
to be made under this Paragraph 25, including, but not limited to the effect of any, Corporate Transaction and Change of Control
and, subject to Paragraph 4, its determination shall be conclusive.

 

		(e)	Modification of Options.   Notwithstanding the foregoing, any adjustments
made pursuant to Subparagraph (a), (b) or (c) above with respect to Options shall be made only after the Administrator
determines whether such adjustments would (i) constitute a “modification” of any ISOs (as that term is defined
in Section 424(h) of the Code) or (ii) cause any adverse tax consequences for the holders of Options, including, but not limited
to, pursuant to Section 409A of the Code. If the Administrator determines that such adjustments made with respect to Options
would constitute a modification or other adverse tax consequence, it may refrain from making such adjustments, unless the holder
of an Option specifically agrees in writing that such adjustment be made and such writing indicates that the holder has full knowledge
of the consequences of such “modification” on his or her income tax treatment with respect to the Option. This paragraph
shall not apply to the acceleration of the vesting of any ISO that would cause any portion of the ISO to violate the annual vesting
limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).

 

     

     

    

 

		(f)	Modification of Performance-Based Awards.   Notwithstanding the foregoing,
with respect to any Performance-Based Award that is intended to comply as “performance based compensation” under Section 162(m)
of the Code, the Committee may adjust downwards, but not upwards, the number of Shares payable pursuant to a Performance-Based
Award, and the Committee may not waive the achievement of the applicable Performance Goals except in the case of death or disability
of the Participant.

 

26. ISSUANCES OF SECURITIES.

 

Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject
to Stock Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property (including
without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right.

 

27. FRACTIONAL SHARES.

 

No fractional shares
shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such fractional
shares equal to the Fair Market Value thereof.

 

28. CONVERSION OF ISOs INTO NON-QUALIFIED
OPTIONS; TERMINATION OF ISOs.

 

The Administrator, at
the written request of any Participant, may in its discretion take such actions as may be necessary to convert such Participant’s
ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior
to the expiration of such ISOs, regardless of whether the Participant is an Employee of the Company or an Affiliate at the time
of such conversion. At the time of such conversion, the Administrator (with the consent of the Participant) may impose such conditions
on the exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine, provided that such
conditions shall not be inconsistent with this Plan. Nothing in the Plan shall be deemed to give any Participant the right to have
such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Administrator
takes appropriate action. The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that
has not been exercised at the time of such conversion.

 

29. WITHHOLDING.

 

In the event that any
federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”) withholdings
or other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s salary,
wages or other remuneration in connection with the issuance of a Stock Right or Shares under the Plan or for any other reason required
by law, the Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance
in cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount
of such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock
or a promissory note, is authorized by the Administrator (and permitted by law). For purposes hereof, the fair market value of
the shares withheld for purposes of payroll withholding shall be determined in the manner set forth under the definition of Fair
Market Value provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If the Fair Market
Value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance
the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion may condition the exercise
of an Option for less than the then Fair Market Value on the Participant’s payment of such additional withholding.

 

     

     

    

 

30. NOTICE TO COMPANY OF DISQUALIFYING
DISPOSITION.

 

Each Employee who receives
an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying Disposition of any Shares
acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is defined in Section 424(c) of the Code and includes
any disposition (including any sale or gift) of such Shares before the later of (a) two years after the date the Employee
was granted the ISO, or (b) one year after the date the Employee acquired Shares by exercising the ISO, except as otherwise
provided in Section 424(c) of the Code. If the Employee has died before such Shares are sold, these holding period requirements
do not apply and no Disqualifying Disposition can occur thereafter.

 

31. TERMINATION OF THE PLAN.

 

The Plan will terminate
on November 3, 2030, the date which is ten years from the earlier of the date of its adoption by the Board
of Directors and the date of its approval by the shareholders of the Company. The Plan may be terminated at an earlier date by
vote of the shareholders or the Board of Directors of the Company; provided, however, that any such earlier termination shall not
affect any Agreements executed prior to the effective date of such termination. Termination of the Plan shall not affect any Stock
Rights theretofore granted.

 

32. AMENDMENT OF THE PLAN AND AGREEMENTS.

 

The Plan may be amended
by the shareholders of the Company. The Plan may also be amended by the Administrator; provided that any amendment approved by
the Administrator which the Administrator determines is of a scope that requires shareholder approval shall be subject to obtaining
such shareholder approval including, without limitation, to the extent necessary to qualify any or all outstanding Stock Rights
granted under the Plan or Stock Rights to be granted under the Plan for favorable federal income tax treatment as may be afforded
incentive stock options under Section 422 of the Code and to the extent necessary to qualify the Shares issuable under the
Plan for listing on any national securities exchange or quotation in any national automated quotation system of securities dealers
and in order to continue to comply with Section 162(m) of the Code. Other than as set forth in Paragraph 25 of the Plan, the
Administrator may not without shareholder approval reduce the exercise price of an Option or cancel any outstanding Option in exchange
for a replacement option having a lower exercise price, any Stock Grant, any other Stock-Based Award or for cash. In addition,
the Administrator not take any other action that is considered a direct or indirect “repricing” for purposes of the
shareholder approval rules of the applicable securities exchange or inter-dealer quotation system on which the Shares are listed,
including any other action that is treated as a repricing under generally accepted accounting principles. Any modification or amendment
of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under a Stock Right previously
granted to him or her. With the consent of the Participant affected, the Administrator may amend outstanding Agreements in a manner
which may be adverse to the Participant but which is not inconsistent with the Plan. In the discretion of the Administrator, outstanding
Agreements may be amended by the Administrator in a manner which is not adverse to the Participant. Nothing in this Paragraph
32 shall limit the Administrator’s authority to take any action permitted pursuant to Paragraph 25.

 

     

     

    

 

33. EMPLOYMENT OR OTHER RELATIONSHIP.

 

Nothing in this Plan
or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director
status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status
or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any period
of time.

 

34. SECTION 409A.

 

If a Participant is
a “specified employee” as defined in Section 409A of the Code (and as applied according to procedures of the Company
and its Affiliates) as of his separation from service, to the extent any payment under this Plan or pursuant to the grant of a
Stock-Based Award constitutes deferred compensation (after taking into account any applicable exemptions from Section 409A
of the Code), and to the extent required by Section 409A of the Code, no payments due under this Plan or pursuant to a Stock-Based
Award may be made until the earlier of: (i) the first day of the seventh month following the Participant’s separation
from service, or (ii) the Participant’s date of death; provided, however, that any payments delayed during this six-month
period shall be paid in the aggregate in a lump sum, without interest, on the first day of the seventh month following the Participant’s
separation from service.

 

The Administrator shall
administer the Plan with a view toward ensuring that Stock Rights under the Plan that are subject to Section 409A of the Code
comply with the requirements thereof and that Options under the Plan be exempt from the requirements of Section 409A of the
Code, but neither the Administrator nor any member of the Board, nor the Company nor any of its Affiliates, nor any other person
acting hereunder on behalf of the Company, the Administrator or the Board shall be liable to a Participant or any Survivor by reason
of the acceleration of any income, or the imposition of any additional tax or penalty, with respect to a Stock Right, whether by
reason of a failure to satisfy the requirements of Section 409A of the Code or otherwise.

 

35. INDEMNITY.

 

Neither the Board nor
the Administrator, nor any members of either, nor any employees of the Company or any parent, subsidiary, or other Affiliate, shall
be liable for any act, omission, interpretation, construction or determination made in good faith in connection with their responsibilities
with respect to this Plan, and the Company hereby agrees to indemnify the members of the Board, the members of the Committee, and
the employees of the Company and its parent or subsidiaries in respect of any claim, loss, damage, or expense (including reasonable
counsel fees) arising from any such act, omission, interpretation, construction or determination to the full extent permitted by
law.

 

36. CLAWBACK.

 

Notwithstanding anything
to the contrary contained in this Plan, the Company may recover from a Participant any compensation received from any Stock Right
(whether or not settled) or cause a Participant to forfeit any Stock Right (whether or not vested) in the event that the Company’s
Clawback Policy then in effect is triggered.

 

37. GOVERNING LAW.

 

This Plan shall be
construed and enforced in accordance with the law of the State of Delaware.

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