Document:

Exhibit
10.1

 

Consulting
Services Agreement

 

The
below designated Client (“Client”) acknowledges and agrees that the services described on Exhibit A
will be performed by TechCXO, LLC pursuant to, and are governed by, the Terms and Conditions attached hereto and incorporated as part
of this Consulting Services Agreement (“Agreement”). The terms of the accompanying exhibits are hereby incorporated
by reference and made a part hereof, to the extent not inconsistent with or contrary to any provision herein. In the event of any conflict,
the terms of this Agreement shall prevail.

 

Agreement
to the terms and conditions is indicated by specification of the required information below and signature of authorized agents for both
TechCXO, LLC, and Client.

 

	Effective
    Date of this Agreement:	 	September 19, 2022	 
	 	 	 

 

	Client
    Executive Contact Information:	 	TechCXO
    Partner Contact Information:
	 	 	 	 	 
	Name:	Dmitry
    Kozko, CEO	 	Name:	John
    Delta, Managing Partner
	 	 	 	 	 
	Address:	5972
                                            NE 4th Avenue

    Miami,
    FL 33137
	 	Address:	1911
    Grayson Highway, Suite 8/122, Grayson, GA 30017
	 	 	 	 	 
	Telephone:	305-507-8799	 	Telephone:	703-509-0583
	 	 	 	 	 
	Email:	dk@motorsportgames.com	 	Email:	john.delta@techcxo.com

 

	 

 

	Executed
    by Client:	 	Executed
    by TechCXO, LLC:
	 

    MOTORSPORT
    GAMES INC.

     
	 	 
	Signature:	/s/
    Dmitry Kozko	 	Signature:	/s/
    John Delta 
	 	 	 	 	 
	Date:	10/1/22	 	Date:	10/4/22
	 	 	 	 	 
	Printed
    Name:	Dmitry
    Kozko	 	Printed
    Name:	John
    Delta
	 	 	 	 	 
	Title:	Chief
    Executive Officer	 	Title:	Managing
    Parter

 

    	 

    	 

    

 

Terms and Conditions

 

1. Consulting
Services

 

TechCXO, LLC (“TechCXO”)
will provide consulting services and executive talent pursuant to the scope of services set forth on Exhibit A, and under
the terms and conditions of this Consulting Services Agreement (the “Agreement”). Any changes to the Agreement
shall be documented and approved by TechCXO and Client in writing and attached to the Agreement. Scheduled service dates will be agreed
upon mutually, subject to availability of TechCXO personnel.

 

2. Status
of Parties

 

TechCXO and its principals, employees, agents and
subcontractors (collectively, “Consultants”) shall be, and at all times during this Agreement shall remain,
an independent contractor in relationship to the Client. Consultants shall not have any rights to the Client’s usual employee fringe
benefits, including, but not limited to, worker’s compensation benefits, and in no event is any contract of agency or employment
intended by this Agreement. Except to the extent authorized by the Client’s Board of Directors in writing, and consistent with the
scope of the services under this Agreement, Consultants shall have no authority to bind, obligate, or commit the Client by any agreement,
promise, or representation in any manner whatsoever.

 

3. Incidental
Expenses

 

Client shall reimburse TechCXO for actual, reasonable
and documented travel, lodging, and out-of-pocket expenses incurred with Client’s prior written approval. Mileage rates will conform
to the IRS standard rate schedule.

 

4. Fees,
Invoicing, and Payment

 

TechCXO’s fees (hourly and fixed) and payment
terms are stated in the accompanying proposal or work order and are subject to periodic adjustment (but in the case of hourly rates, not
more often than once every twelve (12) months). Invoices will normally be issued on a semi-monthly basis, unless otherwise provided. Fees
for services shall be payable when invoiced and shall be deemed overdue if they remain unpaid 31 days after the date of invoice. Overdue
fees shall be subject to a late payment of one and one-half percent (1.5%) per month for each month where payment is not received. Client’s
failure to make timely payments under this Agreement may be considered by TechCXO a material breach of this Agreement, which may result
in suspension of consulting services to Client.

 

If Client’s procedures require that an invoice
be submitted against a purchase order before payment can be made, Client will be responsible for issuing such purchase order 30 days before
the payment due date. If TechCXO has to collect past due sums under this agreement, then it shall also be entitled to collect its reasonable
collection costs, interest and attorney’s fees. Payments are due regardless of any third-party action or responsibilities of Client.

 

	Remit to Address:	 	TechCXO, LLC
	 	 	1911 Grayson Highway, Suite 8/122
	 	 	Grayson, GA 30017

 

5. Term
of Agreement

 

The initial term of this Agreement will be an initial
period of 4 weeks, starting the week of September 19, 2022, provided that if after 4 weeks (the week of October 10, 2022), either the
Client or TechCXO may terminate the Agreement, for any reason on notice to the other party. If the parties thereafter mutually agree to
continue, the term of the Agreement will be a rolling 3-month period until either party notifies the other party that the term is terminated
in accordance with Section 12. The parties may terminate the engagement as outlined in Section 12.

 

6. Client
Obligations

 

As part of the engagement under this Agreement, Client
will furnish or make available any company plans, product information, financial information, and other relevant resources, and provide
access to necessary personnel, as requested by TechCXO to enable the performance of the consulting services. TechCXO fees are based on
anticipated cooperation from Client personnel and the assumption that unexpected circumstances will not be encountered during the engagement.
Other resources, such as Internet access while present on Client premises and adequate workspace facilities, shall be as agreed with Client.
If significant unexpected circumstances occur, the parties will discuss a new fee estimate before TechCXO incurs additional costs.

 

    	 

    	 

    

 

7. Changes
in Scope

 

The scope of the engagement is stated in the accompanying
proposal or work order and shall be the only services provided under this Agreement. In the event that Client seeks to change the scope
of the engagement, Client shall discuss such proposed changes with TechCXO. If TechCXO elects to perform such changes to the engagement,
the parties shall work together in good faith to come to new terms on the scope of the engagement. Any changes in scope shall be mutually
agreed upon in writing prior to commencement of the change. This includes any required changes in engagement responsibilities, fees and
schedule. TechCXO shall not be obligated to perform any differing or additional consulting services unless the parties have mutually agreed
upon and executed a written change order or amendment to this Agreement. TechCXO shall be entitled to an adjustment in fees based on the
change in scope of the engagement. TechCXO will provide an estimate for the change in a timely manner and the Client shall approve or
disapprove this change in a timely manner.

 

8. Taxes

 

The fees quoted in the accompanying proposal or work
order do not include taxes. If TechCXO is required to pay any federal, state, or local taxes based on the services provided under this
Agreement, such taxes, except taxes based on TechCXO’s income, shall be billed to and paid by the Client.

 

9. Rights
to Work Product

 

All deliverables under this Agreement shall be considered
works-made-for-hire (“Deliverables”) and all ownership rights relating to the Deliverables shall vest in Client.
Nothing herein shall be construed to grant TechCXO any right or license to use the confidential, proprietary information of Client. Notwithstanding
the provisions of this section, any intellectual or other property, including but not limited to tools, business processes, work products,
methodologies, techniques, trade secrets, works of authorship, standard training material, courseware, third party or open source software,
or content which (i) is not customized specifically for Client; (ii) does not contain any Client confidential or proprietary information;
and (iii) was developed by TechCXO prior to the execution of this Agreement, and used in the performance of its obligations in creating
the Deliverables pursuant to this Agreement (“TechCXO Property”), belongs to and remains the property of TechCXO.
TechCXO hereby grants to Client a worldwide, nonexclusive, irrevocable, perpetual, royalty-free license to use, copy, distribute, display,
modify and make derivative works of all such TechCXO Property in accordance with this Agreement.

 

10. Warranty
and Disclaimers

 

TechCXO warrants that its services provided pursuant
to this Agreement will be performed in a timely and professional manner consistent with generally accepted industry standards. Any modifications
made to work products or services provided by TechCXO that are not authorized and executed by TechCXO shall void the warranty.

 

EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, TECHCXO
EXPRESSLY DISCLAIMS AND CLIENT EXPRESSLY WAIVES ANY AND ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, ALL
SERVICES AND DELIVERABLES ARE PROVIDED “AS IS.” TECHCXO IS PROVIDING SERVICES TO ASSIST CLIENT. CLIENT IS RESPONSIBLE FOR
REVIEWING THE DELIVERABLES TO ENSURE THEIR ACCURACY AND COMPLETENESS AND FOR THE RESULTS OBTAINED FROM ITS USE OF THE DELIVERABLES.

 

11. 
Limitation of Remedies

 

Client’s sole and exclusive remedy for any claim
against TechCXO and its Consultants with respect to the quality of the services provided by TechCXO under this Agreement shall be, at
TechCXO’s option, re-performance of the consulting services or termination of the engagement and return of the portion of the fees
paid to TechCXO by Client for the nonconforming portion of the consulting services.

 

    	 

    	 

    

 

In order to receive warranty remedies, deficiencies
in the services must be reported to TechCXO in writing within 60 days of completion of that portion of the services. In the absence of
any such notice, the services shall be deemed satisfactory to and accepted by Client.

 

12. 
Termination of Agreement

 

Unless stated otherwise in the proposal or work order
applicable to the services under this Agreement, either party can terminate this Agreement without cause upon thirty (30) days written
notice to the other party. Either party can terminate this Agreement for cause if either party considers the other party is not performing
its obligations in accordance with the terms of this Agreement and provides written notice to the other party of such non-performance.
The party receiving such written notice will have fifteen (15) days from the date of notice receipt to correct the situation. If the situation
is not corrected, the Agreement can be terminated immediately upon written notice. Upon termination of this Agreement, TechCXO will immediately
cease performing any consulting services, and Client will pay TechCXO for all services provided and expenses incurred in accordance with
this Agreement through the date of termination.

 

13. TechCXO
Consultants

 

Client acknowledges and agrees that TechCXO shall
have the right, in its sole discretion, to remove or reassign its Consultants who are assigned to provide services under the Consulting
Services Agreement. Client may immediately terminate this Agreement upon any such change. TechCXO agrees to notify Client before such
removal or reassignment if such notice is possible. In the event Client believes that any TechCXO Consultant is failing to perform the
services in a satisfactory manner or believes that the Consultant is not technically qualified, Client shall notify TechCXO as to the
reasons for such failure. Upon receipt of notice or as soon as reasonably practical thereafter, Client and TechCXO shall mutually determine
the best course of action to take to resolve such failure, which action may include replacing such Consultant at no cost to Client. Should
Client request that a TechCXO Consultant be replaced for any reason other than job performance or technical qualification, an additional
cost may be assessed to Client. This cost will be mutually agreed to in writing prior to replacement of the Consultant.

 

Due to the limited nature of TechCXO’s engagement,
unless expressly stated in the accompanying proposal or work order, TechCXO and its Consultants shall not be solely responsible for the
financial and accounting functions of Client even if acting in a “CFO” or similar executive role. TechCXO and its Consultants
are acting solely in a consulting capacity, and the scope of the engagement is expressly limited to the responsibilities set forth in
the accompanying proposal or work order.

 

14. 
Force Majeure

 

Neither party shall be responsible for any failure
to perform or delay in performing any of its obligations under this Agreement where and to the extent that such failure or delay results
from causes outside the reasonable control of the party. Such causes shall include, without limitation, acts of God or of the public enemy,
acts of the government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, freight embargoes,
civil commotions, or the like. Notwithstanding the above, strikes and labor disputes shall not constitute an excusable delay for either
party under this Agreement.

 

15. 
Limitation of Liability

 

UNDER NO CIRCUMSTANCES AND UNDER NO LEGAL THEORY (WHETHER
IN CONTRACT, TORT, NEGLIGENCE OR OTHERWISE) WILL EITHER PARTY TO THIS AGREEMENT, OR THEIR AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES,
AGENTS, OR CONSULTANTS BE LIABLE TO THE OTHER PARTY OR ANY THIRD PARTY FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, CONSEQUENTIAL,
PUNITIVE OR OTHER SIMILAR DAMAGES, INCLUDING LOST PROFITS, LOST SALES, LOST FUNDING OR INVESTMENT, LOST BUSINESS, LOST DATA, BUSINESS
INTERRUPTION OR ANY OTHER LOSS INCURRED BY THE OTHER PARTY OR SUCH THIRD PARTY IN CONNECTION WITH THIS AGREEMENT OR THE CONSULTING SERVICES,
REGARDLESS OF WHETHER A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF OR COULD HAVE FORESEEN SUCH DAMAGES.

 

CLIENT AGREES THAT TECHCXO’S TOTAL LIABILITY
ARISING OUT OF THIS AGREEMENT OR OTHERWISE IN CONNECTION WITH ANY CONSULTING SERVICES, SHALL IN NO EVENT EXCEED THE FEES PAID BY CLIENT
TO TECHCXO PRIOR TO THE FIRST EVENT OR OCCURRENCE GIVING RISE TO SUCH LIABILITY, AND SHALL IN NO EVENT EXCEED THE TOTAL AMOUNT OF FEES
PAID BY CLIENT TO TECHCXO UNDER THIS AGREEMENT. EACH PARTY ACKNOWLEDGES AND AGREES THAT THE ESSENTIAL PURPOSE OF THIS SECTION IS TO ALLOCATE
THE RISKS UNDER THIS AGREEMENT BETWEEN THE PARTIES AND LIMIT POTENTIAL LIABILITY GIVEN THE FEES, WHICH WOULD HAVE BEEN SUBSTANTIALLY HIGHER
IF TECHCXO WERE TO ASSUME ANY FURTHER LIABILITY OTHER THAN AS SET FORTH HEREIN. TECHCXO HAS RELIED ON THESE LIMITATIONS IN DETERMINING
WHETHER TO PROVIDE CLIENT THE CONSULTING SERVICES PROVIDED FOR IN THIS AGREEMENT.

 

    	 

    	 

    

 

TechCXO shall not be liable for any deficiency in
performance of consulting services to the extent resulting from acts or omissions of the Client, including but not limited to, Client’s
failure to provide accurate information, timely assistance, relevant resources or necessary personnel requested by TechCXO to enable the
performance of the consulting services. TechCXO also shall not be liable for any deficiency in performance of consulting services to the
extent that it does not directly supervise and/or manage staffing personnel provided to Client by TechCXO, or Client refuses to engage
or allow a TechCXO Partner to be involved in the oversight and/or performance of the consulting services.

 

16. 
Indemnification

 

As supplemented by the Indemnity Agreement attached
hereto as Exhibit B, each party shall indemnify and hold the other harmless against any and all third-party claims, costs,
expenses, losses, and liabilities claimed by third parties, arising out of misrepresentations, acts, or omissions of the indemnifying
party, and Client shall indemnify and hold TechCXO harmless against any and all third party claims, costs, expenses, losses, and liabilities
claimed by third parties, arising out of the providing of the products or services referenced in this Agreement, except for instances
of TechCXO’s fraud, gross negligence, or willful misconduct, provided that in each such instance the indemnifying party has been
given notice of such claim and the right to control the defense and settlement thereof.

 

17. 
Nondisclosure

 

By virtue of this Agreement, the parties may have
access to information that is confidential to one another (“Confidential Information”). For purposes of this
Agreement, Confidential Information may include, but is not limited to, information regarding proprietary methods and products, potential
product and/or service offerings, source code, designs, documentation, customer names, customer data, business plans, financial analysis,
financial models, financial forecasts and projections, cash flow models, forecasts and projections, product launch plans, litigations,
investigations and other proceedings, settlement strategies, contract negotiations, future plans and pricing, the marketing or promotion
of any product, and business policies and practices. The parties agree, both during the term of this Agreement and for a period of two
(2) years after termination, for any reason, of this Agreement to hold each other’s Confidential Information in strict confidence,
except as may be required by applicable laws, rules, regulations and listing standards. The parties agree not to make each other’s
Confidential Information available in any form to any third party or to use each other’s Confidential Information for any purpose
other than the performance of this Agreement. Each party agrees to take all reasonable steps to ensure that Confidential Information is
not disclosed or distributed in violation of the provisions of this Agreement, except a disclosure pursuant to any judicial or government
request or order, notice of which it will give to the other party so that it may seek an appropriate protective order. The parties hereby
acknowledge (1) the unique nature of the protections and provisions set forth in this provision, (2) that a party will suffer irreparable
harm if the other party breaches any of said protections of this provision, and (3) that monetary damages will be inadequate to compensate
the party for such breach. Therefore, if a party breaches this provision, then the aggrieved party shall be entitled to injunctive relief,
in addition to any other remedies at law or equity, to enforce such provision.

 

18. Arbitration

 

Except for attempts by TechCXO to collect amounts
owed under this Agreement, or attempts by either party to enforce the provisions of Section 18, which may be pursued, among other ways,
through the federal and state judicial systems, any controversy, dispute, or claim of whatever nature arising out of, in connection with,
or in relation to the interpretation, performance, or breach of this agreement, including any claim based on contract, tort, or statute,
shall be resolved, at the request of any party to this agreement, by final and binding arbitration administered by and in accordance with
the then existing rules and procedures of the American Arbitration Association, as the exclusive method of dispute resolution. The arbitration
shall take place in Fulton County, Georgia. Judgment upon any reward rendered by the arbitrator may be entered by any state or federal
court having jurisdiction thereof.

 

19. 
Notice

 

Any notice required or permitted to be given by one
party to the other shall be deemed to be given when notice is mailed via certified mail with the United States Postal Service with sufficient
postage prepaid, or by recognized courier service with verification of delivery, addressed to respective party to whom notice is intended
at the address specified above in this Agreement or by email to a known email address of the other party.

 

    	 

    	 

    

 

20. 
Governing Law

 

This Agreement shall be governed by the laws of the
State of Georgia without regard to its choice of laws rules. Any dispute arising out of or relating to this Agreement shall be determined
by a federal or state court in the State of Georgia. The parties hereby submit to the jurisdiction of such courts.

 

21. 
Severability

 

If any provision of this Agreement is held by final
judgment of a court of competent jurisdiction to be invalid, illegal, or unenforceable, such invalid, illegal, or unenforceable provision
shall be severed from the remainder of this Agreement, and the remainder of this Agreement shall be enforced. In addition, the invalid,
illegal, or unenforceable provision shall be deemed to be automatically modified, and, as so modified, to be included in this Agreement,
such modification being made to the minimum extent necessary to render the provision valid, legal, and enforceable. Notwithstanding the
foregoing, however, if the severed or modified provision concerns all or a portion of the essential consideration to be delivered under
this Agreement by one party to the other, the remaining provisions of this Agreement shall also be modified to the extent necessary to
equitably adjust the parties’ respective rights and obligations hereunder.

 

22. 
Counterparts

 

This Agreement may be executed in counterparts, each
of which shall be deemed an original and all of which together constitute a singled integrated document. Facsimile transmissions of the
signature page shall be binding upon the parties.

 

23. 
Entire Agreement

 

This Agreement constitutes the complete agreement
between the parties and supersedes all previous agreements or representations, written or oral, with respect to the services and terms
described herein. This Agreement may not be modified or amended except in writing signed by a duly authorized representative of each party.

 

    	 

    	 

    

 

EXHIBIT A

 

SERVICES 

 

Overview

 

TechCXO will provide to Motorsport Games Inc. (“Motorsport
Games,” the “Company” or the “Client”) an interim CFO to lead day-to-day
finance/accounting/FP&A functions. TechCXO takes a holistic approach to providing interim CFOs, with a particular emphasis on financial
and organizational oversight. It is understood that the interim CFO will work with the Company’s CEO and outgoing CFO, as needed,
to evaluate/implement both tactical day-to-day accounting/finance/FP&A process improvements and on strategic issues (i.e., evaluating/improving
the capital structure, cost structure, material weakness remediation and strategic planning). Representative deliverables are listed below.

 

Objectives

 

TechCXO will perform the following
services, focusing on the following activities and deliverables:

 

		1.	Objective: Lead the day-to-day CFO “tactical” responsibilities. Key Results:

 

		a.	Lead/assist current finance team to evaluate and improve accounting processes and procedures (i.e., monthly close, SOX compliance,
timely reporting, etc.).

 

		b.	Lead/assist with all SEC filings and all Compliance related work.

 

		c.	Lead/assist in external messaging and reporting.

 

		d.	Lead/assist in Board reporting.

 

		2.	Objective: Lead day-to-day CFO “strategic” responsibilities.  Key Results:

 

		a.	Lead/assist in the process to optimize the capital structure of the company, including potential sources of growth funding.

 

		b.	Lead/assist in evaluating ways to improve the cost structure and help develop a viable plan to address the “going concern”
issue.

 

		3.	Objective: Lead the FP&A process, including bottom-up planning for the FY’23 budget. Key Results:

 

		a.	Planning for the FY’23 budgets, with a bottom-up approach to support operational management.

 

		b.	Evaluate/improve the FP&A function so that it can support the strategic direction of the company.

 

		c.	Evaluate/implement a Monthly Cash Flow reporting process.

 

		4.	Any other Finance related task(s) you deem necessary, including developing and/or evaluating other Finance/Accounting functions.

 

    	1

    	 

    

 

Timing, Scope and Staffing

 

TechCXO will assign John Delta (whose biography is
set forth on Annex 1) as the CFO Partner for up to 16 hours per week, with any hours in excess of that being subject to
the parties prior agreement.

 

Billing Rates

 

TechCXO’s services are provided on an hourly basis. The proposed
rate structure will be:

 

	●	John Delta	$450/hour

 

TechCXO will invoice monthly based on actual hours
and will not bill any expenses without prior client consent.

 

The fees are for financial or administrative services.
The scope of these services is limited to that described above and does not include work intended to render an audit or valuation opinion,
provide legal advice or counsel, or detect fraud or collusion. TechCXO is a financial service provider and is not a provider of software
or related consulting services. Client expressly acknowledges these limitations. 

 

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Annex 1

 

Service Provider Bio

 

John Delta is an experienced operating and financial
executive and entrepreneur with experience in enterprises from $2 million to $500 million. His main areas of focus are mid-stage software,
SaaS and consumer-facing firms in need of assistance with CFO duties, transaction execution and scaling their finance/operations. Recent
engagements include:

 

		1.	Principal Accounting & Financial Officer for a Nasdaq-listed company (from July 2020 to March 2022).
Led the annual Audit, 10-K and 10-Q filings, and fund-raising efforts. Included in scope of work was developing the annual FP&A/budgeting
process. Reviewed and implemented new accounting policies and procedures and SOX compliance.

 

		2.	Serves as interim CFO for an Australian Stock Exchange-listed company, with scope including FP&A,
treasury management, ASX reporting/compliance and M&A.

 

		3.	Served as Interim CFO for a SaaS cybersecurity firm, with scope including setting up the issuer’s
Finance function.

 

Broad consulting, operations and finance experience,
including:

 

		●	Consulting Associate at McKinsey & Co. and Consulting Manager at Deloitte & Touché.

 

		●	Vice President, The Nasdaq Stock Market – John worked in several departments and developed the business plan for, and then ran,
the E-commerce group.

 

		●	EVP/COO, Hemscott – The firm was a PE-backed roll-up in the financial info space. John led post-merger integration and ops (US,
UK and India). He developed the successful exit strategy of splitting the firm and selling the retail unit to Morningstar.

 

		●	CFO, DoublePositive Marketing Group – the firm was a VC-backed SaaS offering in the lead gen space. John joined when it had
$1M in revenue and led several financings while building the Finance/Admin functions. The firm had a successful exit to a strategic.

 

		●	CFO, Edison Worldwide – John restructured operations, sold off assets and closed non-core units.

 

		●	Founder/CFO, JJAB Holdings – Ran Finance and Operations for this PE-backed startup in the direct response marketing space. The
firm was sold to a strategic acquirer in 1 year.

 

John holds a BA and MBA from the University of Virginia.

 

    	3

    	 

    

 

EXHIBIT B

 

MOTORSPORT GAMES, INC.

 

INDEMNITY AGREEMENT

 

This Indemnity Agreement, dated effective
as of September 19, 2022, is made by and between Motorsport Games Inc., a Delaware corporation (the “Company”), and
John Delta and TechCXO LLC (together the “Indemnitees”).

 

RECITALS

 

A. The
Company and Indemnitees recognize the substantial increase in corporate litigation in general, subjecting directors, officers, employees
and other agents to expensive litigation risks at the same time as the availability and coverage of liability insurance has been severely
limited.

 

B. The
Company desires to attract and retain the services of talented and experienced individuals, such as Indemnitees, to serve as directors,
officers, employees and agents of the Company and its subsidiaries and wishes to indemnify its directors, officers, employees and other
agents to the maximum extent permitted by law.

 

C. Section
145 of the General Corporation Law of Delaware, under which the Company is organized (“Section 145”),
empowers the Company to indemnify its directors, officers, employees and agents by agreement and to indemnify persons who serve, at the
request of the Company, as the directors, officers, employees or agents of other corporations or enterprises, and expressly provides that
the indemnification provided by Section 145 is not exclusive.

 

D. In
order to induce Indemnitees to serve or continue to serve as a director, officer, employee or agent of the Company and/or one or more
subsidiaries of the Company free from undue concern for claims for damages arising out of or related to such services to the Company and/or
one or more subsidiaries of the Company, the Company has determined and agreed to enter into this Agreement with Indemnitees.

 

AGREEMENT

 

NOW, THEREFORE, the Indemnitees and the
Company hereby agree as follows:

 

1. Definitions.
As used in this Agreement:

 

(a) “Agent”
means any person who is or was a director, officer, employee or other agent of the Company or a subsidiary of the Company; or is or was
serving at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company as a director,
officer, employee or agent of another foreign or domestic corporation, partnership, joint venture, trust or other enterprise; or was a
director, officer, employee or agent of a foreign or domestic corporation which was a predecessor corporation of the Company or a subsidiary
of the Company, or was a director, officer, employee or agent of another enterprise at the request of, for the convenience of, or to represent
the interests of such predecessor corporation.

 

(b) “Board”
means the Board of Directors of the Company.

 

    	4

    	 

    

 

(c) “Change
in Control” shall be deemed to have occurred if (i) any “person,” as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), other than a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or a corporation owned directly or indirectly by the stockholders
of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the
total voting power represented by the Company’s then outstanding voting securities, (ii) during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board, together with any new directors whose election by the Board or
nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still
in office who either were directors at the beginning of the period or whose election or nomination was previously so approved, cease for
any reason to constitute a majority of the Board, (iii) the stockholders of the Company approve a merger or consolidation or a sale of
all or substantially all of the Company’s assets with or to another entity, other than a merger, consolidation or asset sale that
would result in the holders of the Company’s outstanding voting securities immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity) at least a majority of the total voting
power represented by the voting securities of the Company or such surviving or successor entity outstanding immediately thereafter, or
(iv) the stockholders of the Company approve a plan of complete liquidation of the Company, provided, however, that any person who, directly
or indirectly is the beneficial owner of 20% or more of such total voting power as of the date of this Agreement, and whose interest does
not at any time represent less than 20% of such voting power, shall not be included for purposes of subsection (i) above.

 

(d) “Expenses”
shall include all out-of-pocket costs of any type or nature whatsoever (including, without limitation, all attorneys’ fees and related
disbursements), actually and reasonably incurred by the Indemnitees in connection with either the investigation, defense or appeal of
a Proceeding or establishing or enforcing a right to indemnification under this Agreement, or Section 145 or otherwise; provided, however,
that “Expenses” shall not include any judgments, fines, ERISA excise taxes or penalties, or amounts paid in settlement of
a Proceeding.

 

(e) “Independent
Counsel” means a law firm, or a partner (or, if applicable, member) of such a law firm, that is experienced in matters
of corporation law and neither currently is, nor in the past five years has been, retained to represent: (i) the Company or the Indemnitees
in any matter material to either such party; or (ii) any other party to or witness in the proceeding giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or the Indemnitees
in an action to determine the Indemnitees’ rights under this Agreement.

 

(f) “Proceeding”
means any threatened, pending, or completed action, suit or other proceeding, whether civil, criminal, administrative, or investigative.

 

(g) “Subsidiary”
means any corporation of which more than 50% of the outstanding voting securities is owned directly or indirectly by the Company, by the
Company and one or more other subsidiaries, or by one or more other subsidiaries.

 

2. No
Right to Employment. The Indemnitees agree that nothing contained in this Agreement is intended to create any right to employment
by the Indemnitees.

 

3. Liability
Insurance.

 

(a) Maintenance
of D&O Insurance. The Company hereby covenants and agrees that, so long as the Indemnitees shall continue to serve as an Agent
of the Company and thereafter so long as the Indemnitees shall be subject to any possible Proceeding by reason of the fact that the Indemnitees
was an Agent of the Company, the Company shall promptly obtain and maintain in full force and effect directors’ and officers’
liability insurance (“D&O Insurance”) in reasonable amounts from established and reputable insurers,
as more fully described below.

 

(b) Rights
and Benefits. In all policies of D&O Insurance, the Indemnitees shall qualify as an insured in such a manner as to provide
the Indemnitees the same rights and benefits as are accorded to the most favorably insured of the Company’s independent directors
(as defined by the insurer) if the Indemnitees is such an independent director; of the Company’s non-independent directors if the
Indemnitees is not an independent director; of the Company’s officers if the Indemnitees is an officer of the Company; or of the
Company’s key employees, if the Indemnitees is not a director or officer but is a key employee.

 

    	5

    	 

    

 

4. Mandatory
Indemnification. Subject to the terms of this Agreement:

 

(a) Third
Party Actions. If the Indemnitees is a person who was or is a party or is threatened to be made a party to any Proceeding (other
than an action by or in the right of the Company) by reason of the fact that the Indemnitees is or was an Agent of the Company, or by
reason of anything done or not done by the Indemnitees in any such capacity, the Company shall indemnify the Indemnitees against all Expenses
and liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes and penalties, and amounts
paid in settlement) actually and reasonably incurred by the Indemnitees in connection with the investigation, defense, settlement or appeal
of such Proceeding, provided the Indemnitees acted in good faith and in a manner the Indemnitees reasonably believed to be in or not opposed
to the best interests of the Company, and, with respect to any criminal action or Proceeding, had no reasonable cause to believe his or
her conduct was unlawful.

 

(b) Derivative
Actions. If the Indemnitees is a person who was or is a party or is threatened to be made a party to any Proceeding by or in the
right of the Company by reason of the fact that the Indemnitees is or was an Agent of the Company, or by reason of anything done or not
done by the Indemnitees in any such capacity, the Company shall indemnify the Indemnitees against all Expenses actually and reasonably
incurred by the Indemnitees in connection with the investigation, defense, settlement or appeal of such Proceeding, provided the Indemnitees
acted in good faith and in a manner the Indemnitees reasonably believed to be in or not opposed to the best interests of the Company;
except that no indemnification under this Section 4(b) shall be made in respect to any claim, issue or matter as to which the Indemnitees
shall have been finally adjudged to be liable to the Company by a court of competent jurisdiction unless and only to the extent that the
Delaware Court of Chancery or the court in which such Proceeding was brought shall determine upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, the Indemnitees is fairly and reasonably entitled to indemnity for such
amounts which the Delaware Court of Chancery or such other court shall deem proper.

 

(c) Actions
where Indemnitees is Deceased. If the Indemnitees is a person who was or is a party or is threatened to be made a party to any
Proceeding by reason of the fact that the Indemnitees is or was an Agent of the Company, or by reason of anything done or not done by
the Indemnitees in any such capacity, and if, prior to, during the pendency of or after completion of such Proceeding the Indemnitees
is deceased, the Company shall indemnify the Indemnitees’ heirs, executors and administrators against all Expenses and liabilities
of any type whatsoever to the extent the Indemnitees would have been entitled to indemnification pursuant to this Agreement were the Indemnitees
still alive.

 

(d) Certain
Terminations. The termination of any Proceeding or of any claim, issue, or matter therein by judgment, order, settlement, or conviction,
or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
create a presumption that the Indemnitees did not act in good faith and in a manner which the Indemnitees reasonably believed to be in
or not opposed to the best interests of the Company or, with respect to any criminal action or Proceeding, that the Indemnitees had reasonable
cause to believe that the Indemnitees’ conduct was unlawful.

 

(e) Limitations.
Notwithstanding the foregoing, the Company shall not be obligated to indemnify the Indemnitees for Expenses or liabilities of any type
whatsoever for which payment is actually made to or on behalf of the Indemnitees under an insurance policy, or under a valid and enforceable
indemnity clause, by-law or agreement.

 

    	6

    	 

    

 

5. Indemnification
for Expenses in a Proceeding in Which the Indemnitees is Wholly or Partly Successful.

 

(a) Successful
Defense. Notwithstanding any other provisions of this Agreement, to the extent the Indemnitees has been successful, on the merits
or otherwise, in defense of any Proceeding (including, without limitation, an action by or in the right of the Company) in which the Indemnitees
was a party by reason of the fact that the Indemnitees is or was an Agent of the Company at any time, the Company shall indemnify the
Indemnitees against all Expenses actually and reasonably incurred by or on behalf of the Indemnitees in connection with the investigation,
defense or appeal of such Proceeding.

 

(b) Partially
Successful Defense. Notwithstanding any other provisions of this Agreement, to the extent that the Indemnitees is a party to or
a participant in any Proceeding (including, without limitation, an action by or in the right of the Company) in which the Indemnitees
was a party by reason of the fact that the Indemnitees is or was an Agent of the Company at any time and is successful, on the merits
or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify the Indemnitees
against all Expenses actually and reasonably incurred by or on behalf of the Indemnitees in connection with each successfully resolved
claim, issue or matter.

 

(c) Dismissal.
For purposes of this section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal,
with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

6. Mandatory
Advancement of Expenses. Subject to the terms of this Agreement and following notice pursuant to Section 7(a) below, the Company
shall advance all Expenses reasonably incurred by the Indemnitees in connection with the investigation, defense, settlement or appeal
of any Proceeding to which the Indemnitees is a party or is threatened to be made a party by reason of the fact that the Indemnitees is
or was an Agent of the Company (unless there has been a final determination that the Indemnitees is not entitled to indemnification for
such Expenses) upon receipt of (i) an undertaking by or on behalf of the Indemnitees to repay the amount advanced in the event that it
shall ultimately be determined that the Indemnitees is not entitled to indemnification by the Company and (ii) satisfactory documentation
supporting such Expenses. Such advances are intended to be an obligation of the Company to the Indemnitees hereunder and shall in no event
be deemed to be a personal loan. The advances to be made hereunder shall be paid by the Company to the Indemnitees within thirty (30)
days following delivery of a written request therefor by the Indemnitees to the Company together with such documentation and information
as is reasonably available to Indemnitees and is reasonably necessary to determine whether and to what extent Indemnitees are entitled
to such indemnification or advances and, in the case of advances, a statement or statements reasonably evidencing the expenses incurred
by Indemnitees. In the event that the Company fails to pay Expenses as incurred by the Indemnitees as required by this paragraph, Indemnitees
may seek mandatory injunctive relief from any court having jurisdiction to require the Company to pay Expenses as set forth in this paragraph.
If Indemnitees seeks mandatory injunctive relief pursuant to this paragraph, it shall not be a defense to enforcement of the Company’s
obligations set forth in this paragraph that Indemnitees has an adequate remedy at law for damages.

 

7. Notice
and Other Indemnification Procedures.

 

(a) Notice
by Indemnitees. Promptly after receipt by the Indemnitees of notice of the commencement of or the threat of commencement of any
Proceeding, the Indemnitees shall, if the Indemnitees believes that indemnification with respect thereto may be sought from the Company
under this Agreement, notify the Company in writing of the commencement or threat of commencement thereof. Notwithstanding the foregoing,
any failure of Indemnitees to provide such a notice to the Company, or to provide such notice in a timely fashion, shall not relieve the
Company of any liability that it may have to Indemnitees unless, and to the extent that, such failure or delay actually and materially
prejudices the interests of the Company.

 

(b) Insurance.
If the Company receives notice pursuant to Section 7(a) hereof of the commencement of a Proceeding that may be covered under D&O Insurance
then in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures
set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay,
on behalf of the Indemnitees, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

    	7

    	 

    

 

(c) Defense.
In the event the Company shall be obligated to pay the Expenses of any Proceeding against the Indemnitees, the Company shall be entitled
to assume the defense of such Proceeding, with counsel selected by the Company and approved by the Indemnitees (which approval shall not
be unreasonably withheld), upon the delivery to the Indemnitees of written notice of its election so to do. After delivery of such notice,
and the retention of such counsel by the Company, the Company will not be liable to the Indemnitees under this Agreement for any fees
of counsel subsequently incurred by the Indemnitees with respect to the same Proceeding, provided that: (i) the Indemnitees shall have
the right to employ his or her own counsel in any such Proceeding at the Indemnitees’ expense; and (ii) the Indemnitees shall have
the right to employ his or her own counsel in any such Proceeding at the Company’s expense if (A) the Company has authorized the
employment of counsel by the Indemnitees at the expense of the Company, (B) the Indemnitees shall have reasonably concluded that there
may be a conflict of interest between the Company and the Indemnitees in the conduct of any such defense, (C) after a Change in Control
not approved by a majority of the members of the Board who were directors immediately prior to such Change in Control, the employment
of counsel by Indemnitees has been approved by Independent Counsel, or (D) the Company shall not, in fact, have employed counsel to assume
the defense of such Proceeding.

 

8. Right
to Indemnification.

 

(a) Right
to Indemnification. In the event that Section 5(a) is inapplicable, the Company shall indemnify the Indemnitees pursuant to this
Agreement unless, and except to the extent that, it shall have been determined by one of the methods listed in Section 8(b) that the Indemnitees
has not met the applicable standard of conduct required to entitle the Indemnitees to such indemnification.

 

(b) Determination
of Right to Indemnification. A determination of the Indemnitees’ right to indemnification hereunder shall be made at the
election of the Board by (i) a majority vote of directors who are not parties to the Proceeding for which indemnification is being sought,
even though less than a quorum, or by a committee consisting of directors who are not parties to the Proceeding for which indemnification
is being sought, who, even though less than a quorum, have been designated by a majority vote of the disinterested directors, (ii) a committee
of such disinterested directors designated by majority vote of such disinterested directors, even though less than a quorum (iii) if there
are no such disinterested directors or if the disinterested directors so direct, by Independent Counsel in a written opinion to the Board,
a copy of which shall be delivered to the Indemnitees, (iii) by the stockholders of the Company, or (iv) by a panel of three arbitrators,
one of whom is selected by the Company, one of whom is selected by the Indemnitees and the last of whom is selected by the first two arbitrators
so selected; provided, however, that, following any Change in Control not approved by a majority of the members of the Board who
were directors immediately prior to such Change in Control, such determination shall be made by an Independent Counsel as specified in
clause (ii) above or by a panel of arbitrators as specified in clause (iv) above.

 

(c) Submission
for Decision. As soon as practicable, and in no event later than thirty (30) days after the Indemnitees’ written request
for indemnification, the Board shall select the method for determining the Indemnitees’ right to indemnification. The Indemnitees
shall cooperate with the person or persons or entity making such determination with respect to the Indemnitees’ right to indemnification,
including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged
or otherwise protected from disclosure and which is reasonably available to the Indemnitees and reasonably necessary to such determination.
Any Independent Counsel, member of the Board or stockholder of the Company shall act reasonably and in good faith in making a determination
regarding the Indemnitees’ entitlement to indemnification under this Agreement.

 

    	8

    	 

    

 

(d) Application
to Court. If (i) the claim for indemnification or advancement of Expenses is denied, in whole or in part, (ii) no disposition
of such claim is made by the Company within ninety (90) days after the request therefor, (iii) the advancement of Expenses is not timely
made pursuant to Section 6 of this Agreement or (iv) payment of indemnification is not made pursuant to Section 5 of this Agreement, the
Indemnitees shall have the right to apply to the Delaware Court of Chancery, the court in which the Proceeding is or was pending or any
other court of competent jurisdiction, for the purpose of enforcing the Indemnitees’ right to indemnification (including the advancement
of Expenses) pursuant to this Agreement.

 

(e) Expenses
Related to the Enforcement or Interpretation of this Agreement. The Company shall indemnify the Indemnitees against all reasonable
Expenses incurred by the Indemnitees in connection with any hearing or proceeding under this Section 8 involving the Indemnitees and against
all reasonable Expenses incurred by the Indemnitees in connection with any other proceeding between the Company and the Indemnitees involving
the interpretation or enforcement of the rights of the Indemnitees under this Agreement, unless a court of competent jurisdiction finds
that each of the claims and/or defenses of the Indemnitees in any such proceeding was frivolous or made in bad faith.

 

9. Exceptions.
Any other provision herein to the contrary notwithstanding, the Company shall not be obligated:

 

(a) Claims
Initiated by Indemnitees. To indemnify or advance Expenses to the Indemnitees with respect to Proceedings or claims initiated
or brought voluntarily by the Indemnitees and not by way of defense, with a reasonable allocation where appropriate, unless (i) such indemnification
is expressly required to be made by law, (ii) the Proceeding was authorized by the Board, (iii) such indemnification is provided by the
Company, in its sole discretion, pursuant to the powers vested in the Company under the General Corporation Law of Delaware or (iv) the
Proceeding is brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise
as required under Section 145 in advance of a final determination;

 

(b) Lack
of Good Faith. To indemnify the Indemnitees for any Expenses incurred by the Indemnitees with respect to any Proceeding instituted
by the Indemnitees to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions
made by the Indemnitees in such Proceeding was not made in good faith or was frivolous;

 

(c) Unauthorized
Settlements. To indemnify the Indemnitees under this Agreement for any amounts paid in settlement of a Proceeding unless the Company
consents to such settlement, which consent shall not be unreasonably withheld;

 

(d) Claims
Under Section 16(b). To indemnify the Indemnitees for Expenses and the payment of profits made from the purchase and sale (or
sale and purchase) by the Indemnitees of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act
of 1934, as amended, or similar provisions of state statutory law or common law; or

 

(e) Payments
Contrary to Law. To indemnify or advance Expenses to the Indemnitees for which payment is prohibited by applicable law.

 

10. Non-Exclusivity.
The provisions for indemnification and advancement of Expenses set forth in this Agreement shall not be deemed exclusive of any other
rights which the Indemnitees may have under any provision of law, the Company’s Certificate of Incorporation or Bylaws, the vote
of the Company’s stockholders or disinterested directors, other agreements, or otherwise, both as to action in the Indemnitees’
official capacity and as to action in another capacity while occupying the Indemnitees’ position as an Agent of the Company, and
the Indemnitees’ rights hereunder shall continue after the Indemnitees has ceased acting as an Agent of the Company and shall inure
to the benefit of the heirs, executors and administrators of the Indemnitees.

 

    	9

    	 

    

 

11. Permitted
Defenses. It shall be a defense to any action for which a claim for indemnification is made under this Agreement (other than an
action brought to enforce a claim for Expenses pursuant to Section 6 hereof, provided that the required undertaking has been tendered
to the Company) that the Indemnitees is not entitled to indemnification because of the limitations set forth in Sections 4 and 9 hereof.
Neither the failure of the Company (including its Board of Directors) or an Independent Counsel to have made a determination prior to
the commencement of such enforcement action that indemnification of the Indemnitees is proper in the circumstances, nor an actual determination
by the Company (including its Board of Directors) or an Independent Counsel that such indemnification is improper, shall be a defense
to the action or create a presumption that the Indemnitees is not entitled to indemnification under this Agreement or otherwise.

 

12. Subrogation.
Except as provided in Section 13, in the event the Company is obligated to make a payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery under an insurance policy or any other indemnity agreement covering the
Indemnitees, who shall execute all documents required and take all action that may be necessary to secure such rights and to enable the
Company effectively to bring suit to enforce such rights (provided that the Company pays the Indemnitees’ costs and expenses of
doing so), including without limitation by assigning all such rights to the extent of such indemnification or advancement of Expenses.

 

13. Primacy
of Indemnification. The Company hereby acknowledges that the Indemnitees may have certain rights to indemnification, advancement
of expenses or liability insurance provided by a third-party and certain of its affiliates (collectively, the “Entity Indemnitors”).
The Company hereby agrees that (i) it is the indemnitor of first resort, i.e., its obligations to the Indemnitees under this Agreement
and any indemnity provisions set forth in its Certificate of Incorporation, Bylaws or elsewhere (collectively, “Indemnity
Arrangements”) are primary, and any obligation of the Entity Indemnitors to advance expenses or to provide indemnification
for the same expenses or liabilities incurred by the Indemnitees is secondary and excess, (ii) it shall advance the full amount of expenses
incurred by the Indemnitees and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement
by or on behalf of the Indemnitees, to the extent legally permitted and as required by any Indemnity Arrangement, without regard to any
rights the Indemnitees may have against the Entity Indemnitors, and (iii) it irrevocably waives, relinquishes and releases the Entity
Indemnitors from any claims against the Entity Indemnitors for contribution, subrogation or any other recovery of any kind arising out
of or relating to any Indemnity Arrangement. The Company further agrees that no advancement or indemnification payment by any Entity Indemnitor
on behalf of the Indemnitees shall affect the foregoing, and the Entity Indemnitors shall be subrogated to the extent of such advancement
or payment to all of the rights of recovery of the Indemnitees against the Company. The Company and the Indemnitees agree that the Entity
Indemnitors are express third party beneficiaries of the terms of this Section 13.

 

14. Survival
of Rights.

 

(a) All
agreements and obligations of the Company contained herein shall continue during the period Indemnitees is an Agent of the Company and
shall continue thereafter so long as Indemnitees shall be subject to any possible claim or threatened, pending or completed Proceeding
by reason of the fact that Indemnitees was serving in the capacity referred to herein.

 

(b) The
Company shall require any successor to the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all
or substantially all of the business or assets of the Company, expressly to assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform if no such succession had taken place.

 

15. Interpretation
of Agreement. It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification
to the Indemnitees to the fullest extent permitted by law, including those circumstances in which indemnification would otherwise be discretionary.

 

    	10

    	 

    

 

 

16. Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever, (i)
the validity, legality and enforceability of the remaining provisions of the Agreement (including, without limitation, all portions of
any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid,
illegal or unenforceable) shall not in any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions
of this Agreement (including, without limitation, all portions of any paragraph of this Agreement containing any such provision held to
be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect
to the intent manifested by the provision held invalid, illegal or unenforceable and to give effect to Section 14 hereof.

 

17. Modification
and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless it is in a writing signed by both
of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

18. Notice.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly
given (a) upon delivery if delivered by hand to the party to whom such notice or other communication shall have been directed, (b) if
mailed by certified or registered mail with postage prepaid, return receipt requested, on the third business day after the date on which
it is so mailed, (c) one business day after the business day of deposit with a nationally recognized overnight delivery service, specifying
next day delivery, with written verification of receipt, or (d) on the same day as delivered by email if delivered during business hours
or on the next successive business day if delivered by email after business hours. Addresses for notice to either party shall be as shown
on the signature page of this Agreement, or to such other address as may have been furnished by either party in the manner set forth above.

 

19. Governing
Law. This Agreement shall be governed exclusively by and construed according to the laws of the State of Delaware as applied to
contracts between Delaware residents entered into and to be performed entirely within Delaware. This Agreement is intended to be an agreement
of the type contemplated by Section 145(f) of the General Corporation Law of Delaware.

 

20. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of
which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforcement is
sought needs to be produced to evidence the existence of this Agreement.

 

The parties hereto have entered into this
Indemnity Agreement effective as of the date first above written.

 

    	11

    	 

    

 

	Indemnitees:	 	 	Company:
	 	
      
	 	 	MOTORSPORT GAMES INC.
	 	/s/ John Delta	 	 	 
	Name:	John Delta	 	 	 
	Address:	8209 Madrillon Estates Dr., Vienna, VA 22182	 	By:	/s/ Dmitry Kozko
	 	 	 	Name:	Dmitry Kozko
	 	 	 	Title:	CEO 
	 	 	 	 	 
	Name:	TechCXO LLC	 	 	 
	 	 	 	 	 
	By:	/s/ John Delta	 	 	 
	Its:	John Delta, Managing Partner	 	 	 
	 	 	 	 	 
	Address:	1911 Grayson Highway. Suite

        8/122, Grayson, GA 30017
	 	 	 

 

    	12Exhibit 10.1

 

Amended and Restated 2015 Equity Incentive Plan, as amended

 

AVINGER, INC.

 

2015 EQUITY INCENTIVE PLAN

 

	 	
			1.

				
			Purposes of the Plan. The purposes of this Plan are:

			

 

	 	
			●

				
			to attract and retain the best available personnel for positions of substantial responsibility,

			

 

	 	
			●

				
			to provide additional incentive to Employees, Directors and Consultants, and

			

 

	 	
			●

				
			to promote the success of the Company’s business.

			

 

The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units and Performance Shares.

 

	 	
			2.

				
			Definitions. As used herein, the following definitions will apply:

			

 

(a) “Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance with Section 4 of the Plan.

 

(b) ”Applicable Laws” means the requirements relating to the administration of equity-based awards under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.

 

(c) ”Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares.

 

(d) ”Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan.

 

(e) ”Board” means the Board of Directors of the Company.

 

(f) ”Change in Control” means the occurrence of any of the following events:

 

(i) A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company; provided, however, that for purposes of this subsection, the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change in Control; or

 

(ii) A change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purposes of this clause (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or

 

 

 

 

(iii) A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3). For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 

For purposes of this definition, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

 

Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time.

 

Further and for the avoidance of doubt, a transaction will not constitute a Change in Control if: (i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.

 

(g) ”Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder will include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

 

(h) “Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board, or a duly authorized committee of the Board, in accordance with Section 4 hereof.

 

(i) ”Common Stock” means the common stock of the Company.

 

(j) ”Company” means Avinger, Inc., a Delaware corporation, or any successor thereto.

 

(k) ”Consultant” means any natural person, including an advisor, engaged by the Company or a Parent or Subsidiary to render bona fide services to such entity, provided the services (i) are not in connection with the offer or sale of securities in a capital-raising transaction, and (ii) do not directly promote or maintain a market for the Company’s securities.

 

(l) ”Director” means a member of the Board.

 

(m) ”Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code, provided that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time.

 

 

 

 

(n) ”Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company.

 

(o) ”Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(p) ”Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for awards of the same type (which may have higher or lower exercise prices and different terms), awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii) the exercise price of an outstanding Award is increased or reduced. The Administrator will determine the terms and conditions of any Exchange Program in its sole discretion.

 

(q) ”Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

 

(i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the New York Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market of The NASDAQ Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 

(ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between the high bid and low asked prices for the Common Stock on the date of determination (or, if no bids and asks were reported on that date, as applicable, on the last trading date such bids and asks were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 

(iii) For purposes of any Awards granted on the Registration Date, the Fair Market Value will be the initial price to the public as set forth in the final prospectus included within the registration statement on Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Common Stock; or

 

(iv) In the absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.

 

(r) ”Fiscal Year” means the fiscal year of the Company.

 

(s) ”Incentive Stock Option” means an Option that by its terms qualifies and is intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

 

(t) “Inside Director” means a Director who is an Employee.

 

(u) ”Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

 

(v) ”Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

 

(w) ”Option” means a stock option granted pursuant to the Plan.

 

(x) ”Outside Director” means a Director who is not an Employee.

 

(y) ”Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

 

 

 

 

(z) ”Participant” means the holder of an outstanding Award.

 

(aa) ”Performance Share” means an Award denominated in Shares which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine pursuant to Section 10.

 

(bb) ”Performance Unit” means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing pursuant to Section 10.

 

(cc) ”Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

 

(dd) ”Plan” means this 2015 Equity Incentive Plan.

 

(ee) ”Registration Date” means the effective date of the first registration statement that is filed by the Company and declared effective pursuant to Section 12(b) of the Exchange Act, with respect to any class of the Company’s securities.

 

(ff) ”Restricted Stock” means Shares issued pursuant to a Restricted Stock award under Section 7 of the Plan, or issued pursuant to the early exercise of an Option.

 

(gg) ”Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted pursuant to Section 8. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

 

(hh) ”Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan.

 

(ii) ”Section 16(b)” means Section 16(b) of the Exchange Act.

 

(jj) “Service Provider” means an Employee, Director or Consultant.

 

(kk) ”Share” means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan.

 

(ll) ”Stock Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant to Section 9 is designated as a Stock Appreciation Right.

 

(mm) ”Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.

 

	 	
			3.

				
			Stock Subject to the Plan.

			

 

(a) Stock Subject to the Plan. Subject to the provisions of Section 14 of the Plan, the maximum aggregate number of Shares that may be issued under the Plan is 1,805,839 Shares, plus the sum of any Shares subject to stock options or similar awards granted under the Company’s 2009 Stock Plan, as amended (the “Existing Plan”) that, on or after the Registration Date, expire or otherwise terminate without having been exercised in full and Shares issued pursuant to awards granted under the Existing Plan that are forfeited to or repurchased by the Company, with the maximum number of Shares to be added to the Plan from previously granted awards under the Existing Plan equal to 375. The Shares may be authorized, but unissued, or reacquired Common Stock.

 

(b) [RESERVED]

 

 

 

 

(c) Lapsed Awards. If an Award expires or becomes unexercisable without having been exercised in full, is surrendered pursuant to an Exchange Program, or, with respect to Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares, is forfeited to, or repurchased by, the Company due to failure to vest, then the unpurchased Shares (or for Awards other than Options or Stock Appreciation Rights the forfeited or repurchased Shares), which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated). With respect to Stock Appreciation Rights, only Shares actually issued (i.e., the net Shares issued) pursuant to a Stock Appreciation Right will cease to be available under the Plan; all remaining Shares under Stock Appreciation Rights will remain available for future grant or sale under the Plan (unless the Plan has terminated). Shares that actually have been issued under the Plan under any Award will not be returned to the Plan and will not become available for future distribution under the Plan; provided, however, that if Shares issued pursuant to Awards of Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units are repurchased by the Company or are forfeited to the Company, such Shares will become available for future grant under the Plan. Shares used to pay the exercise price of an Award or to satisfy the tax withholding obligations related to an Award will become available for future grant or sale under the Plan. To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan. Notwithstanding the foregoing and, subject to adjustment as provided in Section 14, the maximum number of Shares that may be issued upon the exercise of Incentive Stock Options will equal the aggregate Share number stated in Section 3(a), plus, to the extent allowable under Section 422 of the Code, any Shares that become available for issuance under the Plan pursuant to Section 3(c).

 

(d) Share Reserve. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of the Plan.

 

	 	
			4.

				
			Administration of the Plan.

			

 

(a) Procedure.

 

(i) Multiple Administrative Bodies. Different Committees with respect to different groups of Service Providers may administer the Plan.

 

(ii) Section 162(m). To the extent that the Administrator determines it to be desirable to qualify Awards granted hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan will be administered by a Committee of two (2) or more “outside directors” within the meaning of Section 162(m) of the Code.

 

(iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3.

 

(iv) Other Administration. Other than as provided above, the Plan will be administered by (A) the Board or (B) a Committee, which committee will be constituted to satisfy Applicable Laws.

 

(b) Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

 

(i) to determine the Fair Market Value;

 

(ii) to select the Service Providers to whom Awards may be granted hereunder;

 

(iii) to determine the number of Shares to be covered by each Award granted hereunder;

 

 

 

 

(iv) to approve forms of Award Agreements for use under the Plan;

 

(v) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator will determine;

 

(vi) to institute and determine the terms and conditions of an Exchange Program;

 

(vii) to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan;

 

(viii) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable foreign laws;

 

(ix) to modify or amend each Award (subject to Section 19 of the Plan), including but not limited to the discretionary authority to extend the post-termination exercisability period of Awards and to extend the maximum term of an Option (subject to Section 6(b) of the Plan regarding Incentive Stock Options);

 

(x) to allow Participants to satisfy tax withholding obligations in such manner as prescribed in Section 15 of the Plan;

 

(xi) to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator;

 

(xii) to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that otherwise would be due to such Participant under an Award; and

 

(xiii) to make all other determinations deemed necessary or advisable for administering the Plan.

 

(c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards.

 

5. Eligibility. Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units may be granted to Service Providers. Incentive Stock Options may be granted only to Employees.

 

	 	
			6.

				
			Stock Options.

			

 

(a) Limitations. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options will be taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted.

 

(b) Term of Option. The term of each Option will be stated in the Award Agreement. In the case of an Incentive Stock Option, the term will be ten (10) years from the date of grant or such shorter term as may be provided in the Award Agreement. Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant or such shorter term as may be provided in the Award Agreement.

 

 

 

 

(c) Option Exercise Price and Consideration.

 

(i) Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option will be determined by the Administrator, subject to the following:

 

(1) In the case of an Incentive Stock Option

 

(A) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant.

 

(B) granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

 

(2) In the case of a Nonstatutory Stock Option, the per Share exercise price will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

 

(3) Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code.

 

(ii) Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator will fix the period within which the Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised.

 

(iii) Form of Consideration. The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator will determine the acceptable form of consideration at the time of grant. Such consideration may consist entirely of: (1) cash; (2) check; (3) promissory note, to the extent permitted by Applicable Laws, (4) other Shares, provided that such Shares have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option will be exercised and provided that accepting such Shares will not result in any adverse accounting consequences to the Company, as the Administrator determines in its sole discretion; (5) consideration received by the Company under a broker-assisted (or other) cashless exercise program (whether through a broker or otherwise) implemented by the Company in connection with the Plan; (6) by net exercise; (7) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws; or (8) any combination of the foregoing methods of payment.

 

(d) Exercise of Option.

 

(i) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share.

 

An Option will be deemed exercised when the Company receives: (i) a notice of exercise (in such form as the Administrator may specify from time to time) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable withholding taxes). Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 14 of the Plan.

 

 

 

 

Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

 

(ii) Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon the Participant’s termination as the result of the Participant’s death or Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for three (3) months following the Participant’s termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

 

(iii) Disability of Participant. If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following the Participant’s termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

 

(iv) Death of Participant. If a Participant dies while a Service Provider, the Option may be exercised following the Participant’s death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised later than the expiration of the term of such Option as set forth in the Award Agreement), by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator. If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following Participant’s death. Unless otherwise provided by the Administrator, if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan. If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

 

	 	
			7.

				
			Restricted Stock.

			

 

(a) Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine.

 

(b) Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine. Unless the Administrator determines otherwise, the Company as escrow agent will hold Shares of Restricted Stock until the restrictions on such Shares have lapsed.

 

 

 

 

(c) Transferability. Except as provided in this Section 7 or the Award Agreement, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction.

 

(d) Other Restrictions. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate.

 

(e) Removal of Restrictions. Except as otherwise provided in this Section 7, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction or at such other time as the Administrator may determine. The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.

 

(f) Voting Rights. During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.

 

(g) Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares, unless the Administrator provides otherwise. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.

 

(h) Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan.

 

	 	
			8.

				
			Restricted Stock Units.

			

 

(a) Grant. Restricted Stock Units may be granted at any time and from time to time as determined by the Administrator. After the Administrator determines that it will grant Restricted Stock Units under the Plan, it will advise the Participant in an Award Agreement of the terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units.

 

(b) Vesting Criteria and Other Terms. The Administrator will set vesting criteria in its discretion, which, depending on the extent to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant. The Administrator may set vesting criteria based upon the achievement of Company-wide, divisional, business unit, or individual goals (including, but not limited to, continued employment or service), applicable federal or state securities laws or any other basis determined by the Administrator in its discretion.

 

(c) Earning Restricted Stock Units. Upon meeting the applicable vesting criteria, the Participant will be entitled to receive a payout as determined by the Administrator. Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive any vesting criteria that must be met to receive a payout.

 

(d) Form and Timing of Payment. Payment of earned Restricted Stock Units will be made as soon as practicable after the date(s) determined by the Administrator and set forth in the Award Agreement. The Administrator, in its sole discretion, may only settle earned Restricted Stock Units in cash, Shares, or a combination of both.

 

(e) Cancellation. On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited to the Company.

 

 

 

 

	 	
			9.

				
			Stock Appreciation Rights.

			

 

(a) Grant of Stock Appreciation Rights. Subject to the terms and conditions of the Plan, a Stock Appreciation Right may be granted to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion.

 

(b) Number of Shares. The Administrator will have complete discretion to determine the number of Stock Appreciation Rights granted to any Service Provider.

 

(c) Exercise Price and Other Terms. The per share exercise price for the Shares to be issued pursuant to exercise of a Stock Appreciation Right will be determined by the Administrator and will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. Otherwise, the Administrator, subject to the provisions of the Plan, will have complete discretion to determine the terms and conditions of Stock Appreciation Rights granted under the Plan.

 

(d) Stock Appreciation Right Agreement. Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.

 

(e) Expiration of Stock Appreciation Rights. A Stock Appreciation Right granted under the Plan will expire ten (10) years from the date of grant or such shorter term as may be provided in the Award Agreement, as determined by the Administrator, in its sole discretion. Notwithstanding the foregoing, the rules of Section 6(d) relating to exercise also will apply to Stock Appreciation Rights.

 

(f) Payment of Stock Appreciation Right Amount. Upon exercise of a Stock Appreciation Right, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying:

 

(i) The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times

 

(ii) The number of Shares with respect to which the Stock Appreciation Right is exercised.

 

At the discretion of the Administrator, the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or in some combination thereof.

 

	 	
			10.

				
			Performance Units and Performance Shares.

			

 

(a) Grant of Performance Units/Shares. Performance Units and Performance Shares may be granted to Service Providers at any time and from time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have complete discretion in determining the number of Performance Units and Performance Shares granted to each Participant.

 

(b) Value of Performance Units/Shares. Each Performance Unit will have an initial value that is established by the Administrator on or before the date of grant. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant.

 

(c) Performance Objectives and Other Terms. The Administrator will set performance objectives or other vesting provisions (including, without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are met, will determine the number or value of Performance Units/Shares that will be paid out to the Service Providers. The time period during which the performance objectives or other vesting provisions must be met will be called the “Performance Period.” Each Award of Performance Units/Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such other terms and conditions as the Administrator, in its sole discretion, will determine. The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, business unit or individual goals (including, but not limited to, continued employment or service), applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion.

 

 

 

 

(d) Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance Units/Shares will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives or other vesting provisions have been achieved. After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive any performance objectives or other vesting provisions for such Performance Unit/Share.

 

(e) Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance Units/Shares will be made as soon as practicable after the expiration of the applicable Performance Period. The Administrator, in its sole discretion, may pay earned Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof.

 

(f) Cancellation of Performance Units/Shares. On the date set forth in the Award Agreement, all unearned or unvested Performance Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan.

 

11. Outside Director Limitations. No Outside Director may be granted, in any Fiscal Year, Awards with a grant date fair value (determined in accordance with U.S. generally accepted accounting principles) of greater than $250,000, including in the Fiscal Year of his or her initial service as an Outside Director. Any Awards granted to an individual while he or she was an Employee, or while he or she was a Consultant but not an Outside Director, will not count for purposes of the limitations under this Section 11.

 

12. Leaves of Absence/Transfer Between Locations. Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence. A Participant will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary. For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then six (6) months following the first (1st) day of such leave any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.

 

13. Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such Award will contain such additional terms and conditions as the Administrator deems appropriate.

 

14. Adjustments; Dissolution or Liquidation; Change in Control.

 

(a) Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will adjust the number and class of Shares that may be delivered under the Plan and/or the number, class, and price of Shares covered by each outstanding Award, and the numerical Share limit in Section 3 of the Plan.

 

 

 

 

(b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant as soon as practicable prior to the effective date of such proposed transaction. To the extent it previously has not been exercised, an Award will terminate immediately prior to the consummation of such proposed action.

 

(c) Change in Control. In the event of a Change in Control, each outstanding Award will be treated as the Administrator determines, including, without limitation, that (i) Awards may be assumed, or substantially equivalent Awards will be substituted, by the acquiring or succeeding corporation (or an affiliate thereof) with appropriate adjustments as to the number and kind of shares and prices; (ii) upon written notice to a Participant, that the Participant’s Awards will terminate upon or immediately prior to the consummation of such Change in Control; (iii) outstanding Awards will vest and become exercisable, realizable, or payable, or restrictions applicable to an Award will lapse, in whole or in part prior to or upon consummation of such Change in Control, and, to the extent the Administrator determines, terminate upon or immediately prior to the effectiveness of such merger or Change in Control; (iv) (A) the termination of an Award in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights as of the date of the occurrence of the transaction (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction the Administrator determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment), or (B) the replacement of such Award with other rights or property selected by the Administrator in its sole discretion; or (v) any combination of the foregoing. In taking any of the actions permitted under this Section 14(c), the Administrator will not be required to treat all Awards similarly in the transaction.

 

In the event that the successor corporation does not assume or substitute for the Award, the Participant will fully vest in and have the right to exercise all of his or her outstanding Options and Stock Appreciation Rights, including Shares as to which such Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met. In addition, if an Option or Stock Appreciation Right is not assumed or substituted in the event of a Change in Control, the Administrator will notify the Participant in writing or electronically that the Option or Stock Appreciation Right will be exercisable for a period of time determined by the Administrator in its sole discretion, and the Option or Stock Appreciation Right will terminate upon the expiration of such period.

 

For the purposes of this subsection (c), an Award will be considered assumed if, following the Change in Control, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities or property) received in the Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, Performance Unit or Performance Share, for each Share subject to such Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the Change in Control.

 

Notwithstanding anything in this Section 14(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.

 

(d) Outside Director Awards. With respect to Awards granted to an Outside Director, in the event of a Change in Control, the Participant will fully vest in and have the right to exercise Options and/or Stock Appreciation Rights as to all of the Shares underlying such Award, including those Shares which otherwise would not be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met.

 

 

 

 

	 	
			15.

				
			Tax.

			

 

(a) Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof) or such earlier time as any tax withholding obligations are due, the Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local, foreign or other taxes (including the Participant’s FICA obligation) required to be withheld with respect to such Award (or exercise thereof).

 

(b) Withholding Arrangements. The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation) (a) paying cash, (b) electing to have the Company withhold otherwise deliverable cash or Shares having a Fair Market Value equal to the minimum statutory amount required to be withheld, or (c) delivering to the Company already-owned Shares having a Fair Market Value equal to the minimum statutory amount required to be withheld. The Fair Market Value of the Shares to be withheld or delivered will be determined as of the date that the taxes are required to be withheld.

 

(c) Compliance With Code Section 409A. Awards will be designed and operated in such a manner that they are either exempt from the application of, or comply with, the requirements of Code Section 409A such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A, except as otherwise determined in the sole discretion of the Administrator. The Plan and each Award Agreement under the Plan is intended to meet the requirements of Code Section 409A and will be construed and interpreted in accordance with such intent, except as otherwise determined in the sole discretion of the Administrator. To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Code Section 409A, the Award will be granted, paid, settled or deferred in a manner that will meet the requirements of Code Section 409A, such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A.

 

16. No Effect on Employment or Service. Neither the Plan nor any Award will confer upon a Participant any right with respect to continuing the Participant’s relationship as a Service Provider with the Company, nor will they interfere in any way with the Participant’s right or the Company’s right to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.

 

17. Date of Grant. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator. Notice of the determination will be provided to each Participant within a reasonable time after the date of such grant.

 

18. Term of Plan. Subject to Section 22 of the Plan, the Plan will become effective upon the later to occur of (i) its adoption by the Board or (ii) the business day immediately prior to the Registration Date. It will continue in effect for a term of ten (10) years from the date adopted by the Board, unless terminated earlier under Section 19 of the Plan.

 

	 	
			19.

				
			Amendment and Termination of the Plan.

			

 

(a) Amendment and Termination. The Administrator may at any time amend, alter, suspend or terminate the Plan.

 

(b) Stockholder Approval. The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws.

 

 

 

 

(c) Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan will materially impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

 

	 	
			20.

				
			Conditions Upon Issuance of Shares.

			

 

(a) Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance.

 

(b) Investment Representations. As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

 

21. Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction or to complete or comply with the requirements of any registration or other qualification of the Shares under any state, federal or foreign law or under the rules and regulations of the Securities and Exchange Commission, the stock exchange on which Shares of the same class are then listed, or any other governmental or regulatory body, which authority, registration, qualification or rule compliance is deemed by the Company’s counsel to be necessary or advisable for the issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority, registration, qualification or rule compliance will not have been obtained.

 

22. Stockholder Approval. The Plan will be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws.

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