Document:

Exhibit 10.1

 

iFRESH INC.

EMPLOYMENT AGREEMENT

 

This Employment
Agreement (this “Agreement”) is made and entered into on May 17, 2017 (the “Effective
Date”) by and between iFresh Inc. (the “Company”) and Alfred Chung-Chieh Ying (“Executive”).
The Company and Executive are hereinafter collectively referred to as the “Parties”, and individually
referred to as a “Party”.

 

Recitals

 

A.       The
Company desires assurance of the association and services of Executive in order to retain Executive’s experience, skills,
abilities, background and knowledge, and is willing to engage Executive’s services on the terms and conditions set forth
in this Agreement.

 

B.       Executive
desires to be in the employ of the Company, and is willing to accept such employment on the terms and conditions set forth in this
Agreement.

 

Agreement

 

In consideration of the
foregoing Recitals and the mutual promises and covenants herein contained, and for other good and valuable consideration, the Parties,
intending to be legally bound, agree as follows:

 

1.       Employment.

 

1.1       Title.
Effective as of the Effective Date, Executive’s position shall be Chief Financial Officer, subject to the terms and conditions
set forth in this Agreement.

 

1.2       Term.
The term of this Agreement shall begin on the Effective Date and shall continue for a period of three (3) years or until it is
terminated pursuant to Section 4 herein (the “Term”).

 

1.3       Duties.
Executive shall have the customary powers, responsibilities and authorities of the Chief Financial Officer of corporations
of the size, type and nature of the Company, as it exists from time to time, including the responsibilities listed on Schedule
A. Executive shall report to Chief Executive Officer of the Company and the Board of Directors of the Company.

 

1.4       Governing
Agreement. The employment relationship between the Parties shall be governed by this Agreement

 

    

     

    

 

2.       Loyalty;
Noncompetition; Nonsolicitation.

 

2.1       Loyalty.
During Executive’s employment by the Company, Executive shall devote substantially all his business time to the performance
of Executive’s duties under this Agreement. Notwithstanding the foregoing, except as otherwise agreed to in writing, Executive
shall have the right to perform such incidental services as are necessary in connection with (a) his private passive investments,
(b) his charitable or community activities, (c) his participation in trade or professional organizations, and (d) his service on
the board of directors (or comparable body) of any third-party corporate entity that is not a Competitive Entity (as defined in
Section 2.3), so long as these activities do not materially interfere with Executive’s duties hereunder and, with respect
to (d), Executive obtains prior Company consent, which consent will not be unreasonably withheld. Executive may also provide limited
services to other parties provided such services are without remuneration.

 

2.2       Agreement
not to Participate in Company’s Competitors. During the Term, Executive agrees not to acquire, assume or participate
in, directly or indirectly, any position, investment or interest known by Executive to be adverse or antagonistic to the Company,
its business, or prospects, financial or otherwise, or in any company, person, or entity that is, directly or indirectly, in competition
with the business of the Company or any of its Affiliates (as defined below). Ownership by Executive, in professionally managed
funds over which the Executive does not have control or discretion in investment decisions, or as a passive investment, of less
than five percent (5%) of the outstanding shares of capital stock of any corporation with one or more classes of its capital stock
listed on a national securities exchange or publicly traded on a national securities exchange or in the over-the-counter market
shall not constitute a breach of this Section. For purposes of this Agreement, “Affiliate,” means, with
respect to any specific entity, any other entity that, directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with such specified entity.

 

2.3       Covenant
not to Compete. During the Term and for a period of three (3) months thereafter (the “Restricted Period”),
Executive shall not engage in competition with the Company and/or any of its Affiliates, either directly or indirectly, in any
manner or capacity, as adviser, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner,
co-owner, consultant, or member of any association or otherwise, in any phase of the business of developing, manufacturing and
marketing of cancer diagnostic tests (a “Competitive Entity”), except with the prior written consent
of the Company.

 

2.4       Nonsolicitation.
During the Restricted Period, Executive shall not: (i) solicit or induce, or attempt to solicit or induce, any employee
of the Company or its Affiliates to leave the employ of the Company or such Affiliate; or (ii) solicit or attempt to solicit the
business of any client or customer of the Company or its Affiliates with respect to products, services, or investments similar
to those provided or supplied by the Company or its Affiliates.

 

2.5       Acknowledgements.
Executive acknowledges and agrees that his services to the Company pursuant to this Agreement are unique and extraordinary
and that in the course of performing such services Executive shall have access to and knowledge of significant confidential, proprietary,
and trade secret information belonging to the Company. Executive agrees that the covenant not to compete and the nonsolicitation
obligations imposed by this Section 2 are reasonable in duration, geographic area, and scope and are necessary to protect the Company’s
legitimate business interests in its goodwill, its confidential, proprietary, and trade secret information, and its investment
in the unique and extraordinary services to be provided by Executive pursuant to this Agreement. If, at the time of enforcement
of this Section 2, a court holds that the covenant not to compete and/or the nonsolicitation obligations described herein are unreasonable
or unenforceable under the circumstances then existing, then the Parties agree that the maximum duration, scope, and/or geographic
area legally permissible under such circumstances will be substituted for the duration, scope and/or area stated herein.

 

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3.       Compensation
of the Executive.

 

3.1       Base
Salary. The Company shall pay Executive a base salary (the “Base Salary”) at the annualized rate
of One Hundred Fifty Thousand Dollars ($150,000.00), less payroll deductions and all required withholdings, payable in regular
periodic payments in accordance with the Company’s normal payroll practices. The Base Salary shall be prorated for any partial
year of employment on the basis of a 365-day fiscal year. The Company may increase, but not decrease (except in connection with
a Company-wide decrease in executive compensation), Executive’s Base Salary from time to time, and if so increased, “Base
Salary” shall include such increases for purposes of this Agreement.

 

3.2       Bonuses.
At the sole discretion of the Board of Directors of the Company (the “Board”) or the compensation committee
of the Board (the “Compensation Committee”), following each calendar year of employment, Executive shall
be eligible to receive (i) an additional cash bonus on Executive’s attainment of certain financial, clinical development,
and/or business milestones (the “Milestones”) to be established annually by the Board or the Compensation
Committee, and (ii) 10,000 shares of the Company’s common stock on Executive’s attainment of certain Milestones. The
determination of whether Executive has met the Milestones, and if so, the bonus amount (if any) that will be paid, shall be determined
by the Board or the Compensation Committee in its sole and absolute discretion.

 

3.3       Expense
Reimbursements; Housing. The Company will reimburse Executive for all reasonable business expenses Executive incurs in conducting
his duties hereunder, pursuant to the Company’s usual expense reimbursement policies, but in no event later than ninety (90)
days after the end of the calendar month following the month in which such expenses were incurred by Executive; provided that Executive
supplies the appropriate substantiation for such expenses no later than the end of the calendar month following the month in which
such expenses were incurred by Executive. The Company shall pay (or reimburse executive for) up to $2,000 per month for housing
for Executive and Executive’s family.

 

3.4       Employment
Taxes. All of Executive’s compensation shall be subject to customary withholding taxes and any other employment taxes
as are commonly required to be collected or withheld by the Company.

 

3.5       Benefits.
The Executive shall, in accordance with Company policy and the applicable plan documents, be eligible to participate in benefits
under any benefit plan or arrangement, including medical, dental, vision, disability and life insurance programs, that may be in
effect from time to time and made available to the Company’s senior management employees, subject to the terms and conditions
of those benefit plans.

 

3.6       Holidays
and Vacation. Executive shall receive ten (10) days of paid vacation per year. In addition to such paid vacation, Executive
shall receive all paid Company holidays in accordance with Company policy.

 

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4.       Termination.

 

4.1       Termination
by the Company. Executive’s employment with the Company is at will and may be terminated by the Company at any time and
for any reason, or for no reason, including, but not limited to, under the following conditions:

 

4.1.1       Termination
by the Company for Cause. The Company may terminate Executive’s employment under this Agreement for “Cause”
by delivery of written notice to Executive. Any notice of termination given pursuant to this Section 4.1.1 shall effect termination
as of the date of the notice, or as of such other date as specified in the notice.

 

4.1.2       Termination
by the Company without Cause. The Company may terminate Executive’s employment under this Agreement without Cause at
any time and for any reason, or for no reason. Such termination shall be effective on the date Executive is so informed, or as
otherwise specified by the Company.

 

4.2       Termination
by Resignation of Executive. Executive’s employment with the Company is at will and may be terminated by Executive at
any time and for any reason, or for no reason, including via a resignation for Good Reason in accordance with the procedures set
forth in Section 4.6.3 below.

 

4.3       Termination
for Death or Complete Disability. Executive’s employment with the Company shall automatically terminate effective upon
the date of Executive’s death or Complete Disability (as defined below).

 

4.4       Termination
by Mutual Agreement of the Parties. Executive’s employment with the Company may be terminated at any time upon a mutual
agreement in writing of the Parties. Any such termination of employment shall have the consequences specified in such agreement.

 

4.5       Compensation
Upon Termination.

 

4.5.1       Death
or Complete Disability. If, during the Term of this Agreement, Executive’s employment shall be terminated by death or
Complete Disability, the Company shall pay to Executive, his estate, or his heirs, as applicable, (i) any Base Salary owed to Executive
through the date of termination; (ii) expenses reimbursement amounts owed to Executive; (iii) all unpaid bonuses Executive earned
prior to the termination date; (iv) a cash lump sum in respect to accrued and unused vacation benefits earned through the date
of termination at the rate in effect at the time of termination; (v) any payments and benefits to which Executive (or his estate)
is entitled pursuant to the terms of any employee benefit or compensation plan or program in which he participates (or participated);
and (vi) any amount to which Executive is entitled pursuant to any other written agreements between the Company or any of its affiliates
and Executive (the amounts in (i) through (vi) above being the “Termination Amounts”). The Company shall
pay Executive: (A) the amounts contained in items (i) through (iv) within ten (10) days following such termination; (B) any payments
associated with (v) in accordance to the terms of such plans or programs; and (C) any such amounts in (vi) in accordance with the
terms of such agreements, with the Termination Amounts being subject to the standard deductions and withholdings (as applicable).

 

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4.5.2       Termination
For Cause or Resignation without Good Reason. If, during the Term of this Agreement, Executive’s employment is terminated
by the Company for Cause, or Executive resigns his employment hereunder without Good Reason, the Company shall pay Executive the
Termination Amounts, less standard deductions and withholdings. The Company shall thereafter have no further obligations to Executive
under this Agreement, except as otherwise provided by law.

 

4.5.3       Termination
Without Cause or Resignation For Good Reason Not In Connection with a Change of Control. If the Company terminates Executive’s
employment without Cause, or if Executive resigns for Good Reason, at any time other than upon the occurrence of, or within thirty
(30) days prior to, or six (6) months following, the effective date of a Change of Control (as defined below), the Company shall
pay Executive the Termination Amounts, less standard deductions and withholdings. In addition, subject to Executive furnishing
to the Company an executed Release within the time period specified therein, and allowing the Release to become effective in accordance
with its terms, Executive shall be entitled to: (1) severance in the form of continuation of his salary (at the Base Salary rate
in effect at the time of termination, but prior to any reduction triggering Good Reason) for three (3) months; (2) payment of Executive’s
premiums to cover COBRA for a period of three (3) months following the termination date; and (3) immediate accelerated vesting
of any unvested Restricted Shares and unvested outstanding stock option(s). These payments under (1), (2), and (3) above will be
subject to standard payroll deductions and withholdings and will be made on the Company’s regular payroll cycle, provided,
however, that any payments otherwise scheduled to be made prior to the effective date of the Release shall accrue and be paid in
the first payroll period that follows such effective date.

 

4.5.4       Termination
Without Cause or Resignation For Good Reason In Connection with a Change of Control. If the Company terminates Executive’s
employment without Cause, or if Executive resigns for Good Reason, upon the occurrence of, or within thirty (30) days prior to,
or within six (6) months following, the effective date of a Change of Control, the Company shall pay Executive the Termination
Amounts, less standard deductions and withholdings. In addition, subject to Executive furnishing to the Company an executed Release
within the time period specified therein, and allowing the Release to become effective in accordance with its terms, then Executive
shall be entitled to: (1) severance in the form of a lump sum payment equivalent to three (3) months of his Base Salary (at the
Base Salary rate in effect at the time of termination, but prior to any reduction triggering Good Reason); (2) payment of Executive’s
premiums to cover COBRA for a period of three, and (3) immediate accelerated vesting of any unvested Restricted Shares and unvested
outstanding stock option(s). These payments under (1), (2) and (3) above, will be subject to standard payroll deductions and withholdings
and will be made on the Company’s regular payroll cycle, provided, however, that any payments otherwise scheduled to be made
prior to the effective date of the Release shall accrue and be paid in the first payroll period that follows such effective date.

 

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4.6       Definitions.
For purposes of this Agreement, the following terms shall have the following meanings:

 

4.6.1       Complete
Disability. “Complete Disability” means that Executive is determined to be permanently disabled pursuant
to the Company’s long term disability plan and is receiving disability benefits under such plan.

 

4.6.2       Cause.
“Cause” for the Company to terminate Executive’s employment hereunder shall mean the occurrence
of any of the following events, as determined by the Company and/or the Board in its and/or their sole and absolute discretion:

 

(i)       The
willful failure, disregard or refusal by Executive to perform his material duties or obligations under this Agreement or to follow
lawful directions received by Executive from the Board;

 

(ii)       Any
grossly negligent act by Executive having the effect of materially injuring (whether financially or otherwise) the business or
reputation of the Company or any willful act by Executive intended to cause such material injury, except any acts (A) made by Executive
in connection with the enforcement of his rights, whether under this Agreement, any other agreement between the Company or any
affiliate and Executive, or pursuant to applicable law (e.g. disparagement, etc.) or (B) which are required by law or pursuant
to a subpoena or demand by a governmental or regulatory body;

 

(iii)       Executive’s
indictment for any felony involving moral turpitude (including entry of a nolo contendere plea);

 

(iv)       The
determination, after a reasonable and good-faith investigation by the Company, that the Executive engaged in discrimination prohibited
by law (including, without limitation, age, sex or race discrimination);

 

(v)       Executive’s
misappropriation or embezzlement of the property of the Company or its Affiliates (whether or not a misdemeanor or felony); or

 

(vi)       Material
breach by Executive of this Agreement and/or of his Proprietary Information and Inventions Agreement (“PIIA”);
provided, however, that, any such termination of Executive shall only be deemed for Cause pursuant to this definition if: (1) the
Company gives the Executive written notice of the condition(s) alleged to constitute Cause, which notice shall describe such condition(s);
and (2) the Executive fails to remedy such condition(s) (if curable) within thirty (30) days following receipt of the written notice.

 

4.6.3       Good
Reason. For purposes of this Agreement, and subject to the caveat at the end of this Section, “Good Reason” for
Executive to terminate his employment hereunder shall mean the occurrence of any of the following events without Executive’s
prior written consent:

 

(i)       any
reduction by the Company of Executive’s Base Salary as initially set forth herein, provided, however, that if such reduction
occurs in connection with a Company-wide decrease in executive compensation, such reduction shall not constitute Good Reason for
Executive to terminate his employment;

 

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(ii)       a
material breach by the Company (or any of its affiliates) of this Agreement or any other written agreement between the Company
or any of its affiliates and Executive; or

 

(iii)       a
material adverse change in Executive’s duties, titles, authority, responsibilities or reporting relationships, with such
determination being made with reference to the greatest extent of your duties, titles, authority, responsibilities or reporting
relationships, etc. as increased (but not decreased) from time to time;

 

(iv)       any
failure of the Company or any affiliate to pay Executive any amount owed to Executive under this Agreement or any other written
agreement plan or program between the Company, any affiliates and Executive;

 

(v)       any
reduction in Executive’s bonus eligibility; or

 

(vi)       the
assignment to Executive of duties materially inconsistent with his position with the Company.

 

Provided, however, that,
any such termination by the Executive shall only be deemed for Good Reason pursuant to this definition if: (1) the Executive
gives the Company written notice of his intent to terminate for Good Reason; which notice shall describe such condition(s); (2)
the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice the “Cure
Period”); and (3) Executive voluntarily terminates his employment within thirty (30) days following the end of the
Cure Period.

 

4.6.4       Change
of Control. For purposes of this Agreement, “Change of Control” shall mean the occurrence, in a single transaction
or in a series of related transactions, of any one or more of the following events (excluding in any case transactions in which
the Company or its successors issues securities to investors primarily for capital raising purposes):

 

(i)       the
acquisition by a third party (or more than one party acting as a group) of securities of the Company representing more than fifty
percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger,
consolidation or similar transaction, provided that a Change of Control shall not be deemed to have occurred if such third party
(or a member of such group) owns in excess of 5% of the Company’s voting power as of the date of this Agreement;

 

(ii)       a
merger, consolidation or similar transaction following which the stockholders of the Company immediately prior thereto do not own
at least fifty percent (50%) of the combined outstanding voting power of the surviving entity (or that entity’s parent) in
such merger, consolidation or similar transaction;

 

(iii)       the
dissolution or liquidation of the Company; or

 

(iv)       the
sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company.

 

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4.7       Survival
of Certain Sections. Sections 3, 4, 5, 6, 7, 8, 9, 12, 13, 16, 17, 19 and 21 of this Agreement will survive the termination
of this Agreement.

 

4.8       Application
of Internal Revenue Code Section 409A. Notwithstanding anything to the contrary set forth herein, any payments and benefits
provided under this Agreement (the “Severance Benefits”) that constitute “deferred compensation”
within the meaning of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect
(collectively “Section 409A”) shall not commence in connection with Executive’s termination of
employment unless and until Executive has also incurred a “separation from service” (as such term is defined in Treasury
Regulation Section 1.409A-1(h) (“Separation From Service”), unless the Company reasonably determines
that such amounts may be provided to Executive without causing Executive to incur the additional 20% tax under Section 409A.

 

It is intended that each
installment of the Severance Benefits payments provided for in this Agreement is a separate “payment” for purposes
of Treasury Regulation Section 1.409A-2(b)(2)(i). For the avoidance of doubt, it is intended that payments of the Severance Benefits
set forth in this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided
under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if the Company (or, if applicable,
the successor entity thereto) determines that the Severance Benefits constitute “deferred compensation” under Section
409A and Executive is, on the termination of service, a “specified employee” of the Company or any successor entity
thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code, then, solely to the extent necessary to avoid the incurrence
of the adverse personal tax consequences under Section 409A, the timing of the Severance Benefit payments shall be delayed until
the earlier to occur of: (i) the date that is six months and one day after Executive’s Separation From Service, or (ii) the
date of Executive’s death (such applicable date, the “Specified Employee Initial Payment Date”),
the Company (or the successor entity thereto, as applicable) shall (A) pay to Executive a lump sum amount equal to the sum of the
Severance Benefit payments that Executive would otherwise have received through the Specified Employee Initial Payment Date if
the commencement of the payment of the Severance Benefits had not been so delayed pursuant to this Section and (B) commence paying
the balance of the Severance Benefits in accordance with the applicable payment schedules set forth in this Agreement.

 

Notwithstanding anything
to the contrary set forth herein, Executive shall receive the Severance Benefits described above, if and only if Executive duly
executes and returns to the Company within the applicable time period set forth therein, but in no event more than forty-five days
following Separation From Service, the Release and permits the release of claims contained therein to become effective in accordance
with its terms. Notwithstanding any other payment schedule set forth in this Agreement, none of the Severance Benefits will be
paid or otherwise delivered prior to the effective date of the Release. Except to the extent that payments may be delayed until
the Specified Employee Initial Payment Date pursuant to the preceding paragraph, on the first regular payroll pay day following
the effective date of the Release, the Company will pay Executive the Severance Benefits Executive would otherwise have received
under the Agreement on or prior to such date but for the delay in payment related to the effectiveness of the Release, with the
balance of the Severance Benefits being paid as originally scheduled. All amounts payable under the Agreement will be subject to
standard payroll taxes and deductions.

 

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All reimbursements and
in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A to
the extent that such reimbursements or in-kind benefits are subject to Section 409A. All reimbursements for expenses paid pursuant
hereto that constitute taxable income to Executive shall in no event be paid later than the end of the calendar year next following
the calendar year in which Executive incurs such expense or pays such related tax. Unless otherwise permitted by Section 409A,
the right to reimbursement or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another
benefit and the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not
affect the expenses eligible for reimbursement, or in-kind benefits to be provided, respectively, in any other taxable year.

 

5.       Confidential
And Proprietary Information.

 

As a condition of employment
Executive agrees to execute and abide by the PIIA.

 

6.       Assignment
and Binding Effect.

 

This Agreement shall
be binding upon and inure to the benefit of Executive and Executive’s heirs, executors, personal representatives, assigns,
administrators and legal representatives. Because of the unique and personal nature of Executive’s duties under this Agreement,
neither this Agreement nor any rights or obligations under this Agreement shall be assignable by Executive. This Agreement shall
be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives. Any such successor
of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose,
“successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger
or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.

 

7.       Notices.

 

All notices or demands
of any kind required or permitted to be given by the Company or Executive under this Agreement shall be given in writing and shall
be personally delivered (and receipted for) or faxed during normal business hours or mailed by certified mail, return receipt requested,
postage prepaid, addressed as follows:

 

If to the Company:

 

iFresh Inc.

2-39 54th Ave.

Long Island City, NY 11101

(718) 628-6200

 

Attn: ___________

 

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If to Executive:

 

Alfred Chung-Chieh Ying

[address]

 

[fax]

 

Any such written notice shall be deemed
given on the earlier of the date on which such notice is personally delivered or three (3) days after its deposit in the United
States mail as specified above. Either Party may change its address for notices by giving notice to the other Party in the manner
specified in this Section.

 

8.       Choice
of Law.

 

This Agreement shall
be construed and interpreted in accordance with the internal laws of the State of New York without regard to its conflict of laws
principles.

 

9.       Integration.

 

This Agreement, including
Exhibit A and the PIIA, contains the complete, final and exclusive agreement of the Parties relating to the terms and conditions
of Executive’s employment and the termination of Executive’s employment, and supersedes all prior and contemporaneous
oral and written employment agreements or arrangements between the Parties.

 

10.       Amendment.

 

This Agreement cannot
be amended or modified except by a written agreement signed by Executive and the Company.

 

11.       Waiver.

 

No term, covenant or
condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent of the Party against
whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be deemed to be a waiver of
any preceding or succeeding breach of the same or any other term, covenant, condition or breach.

 

12.       Severability.

 

The finding by a court
of competent jurisdiction of the unenforceability, invalidity or illegality of any provision of this Agreement shall not render
any other provision of this Agreement unenforceable, invalid or illegal. Such court shall have the authority to modify or replace
the invalid or unenforceable term or provision with a valid and enforceable term or provision, which most accurately represents
the Parties’ intention with respect to the invalid or unenforceable term, or provision.

 

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13.       Interpretation;
Construction.

 

The headings set forth
in this Agreement are for convenience of reference only and shall not be used in interpreting this Agreement. This Agreement has
been drafted by legal counsel representing the Company, but the Executive has been encouraged to consult with, and has consulted
with, Executive’s own independent counsel and tax advisors with respect to the terms of this Agreement. The Parties acknowledge
that each Party and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and any rule
of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation
of this Agreement.

 

14.       Representations
and Warranties.

 

Executive represents
and warrants that Executive is not restricted or prohibited, contractually or otherwise, from entering into and performing each
of the terms and covenants contained in this Agreement, and that Executive’s execution and performance of this Agreement
will not violate or breach any other agreements between the Executive and any other person or entity.

 

15.       Counterparts.

 

This Agreement may be
executed in two counterparts, each of which shall be deemed an original, all of which together shall contribute one and the same
instrument. Signatures to this Agreement transmitted by fax, by email in “portable document format” (“.pdf”)
or by any other electronic means intended to preserve the original graphic and pictorial appearance of this Agreement shall have
the same effect as physical delivery of the paper document bearing original signature.

 

16.       Arbitration.

 

To ensure the rapid and
economical resolution of disputes that may arise in connection with the Executive’s employment with the Company, Executive
and the Company agree that any and all disputes, claims, or causes of action, in law or equity, arising from or relating to Executive’s
employment, or the termination of that employment, will be resolved, to the fullest extent permitted by law, by final, binding
and confidential arbitration pursuant to the Federal Arbitration Act in New York, New York conducted by the Judicial Arbitration
and Mediation Services/Endispute, Inc. (“JAMS”), or its successors, under the then current rules of JAMS
for employment disputes; provided that the arbitrator shall: (a) have the authority to compel adequate discovery for the resolution
of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision including
the arbitrator’s essential findings and conclusions and a statement of the award. Accordingly, Executive and the Company
hereby waive any right to a jury trial. Both Executive and the Company shall be entitled to all rights and remedies that either
Executive or the Company would be entitled to pursue in a court of law. The Company shall pay any JAMS filing fee and shall pay
the arbitrator’s fee. The arbitrator shall have the discretion to award attorneys fees to the party the arbitrator determines
is the prevailing party in the arbitration. Nothing in this Agreement is intended to prevent either Executive or the Company from
obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Notwithstanding
the foregoing, Executive and the Company each have the right to resolve any issue or dispute involving confidential, proprietary
or trade secret information, or intellectual property rights, by Court action instead of arbitration.

 

17.       Indemnification.

 

The Company shall defend
and indemnify Executive in his capacity as an officer of the Company to the fullest extent permitted under the Delaware General
Corporation Law (“DGCL”). The Company shall also maintain a policy for indemnifying its officers and directors, including
but not limited to the Executive, for all actions permitted under the DGCL taken in good faith pursuit of their duties for the
Company, including but not limited to maintaining an appropriate level of Directors and Officers Liability coverage and maintaining
the inclusion of such provisions in the Company’s by-laws or articles of incorporation, as applicable and customary. The
rights to indemnification shall survive any termination of this Agreement.

 

18.       Trade
Secrets Of Others.

 

It is the understanding
of both the Company and Executive that Executive shall not divulge to the Company and/or its subsidiaries any confidential information
or trade secrets belonging to others, including Executive’s former employers, nor shall the Company and/or its Affiliates
seek to elicit from Executive any such information. Consistent with the foregoing, Executive shall not provide to the Company and/or
its Affiliates, and the Company and/or its Affiliates shall not request, any documents or copies of documents containing such information.

 

[signature
page follows]

 

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In
Witness Whereof, the Parties have executed this Agreement as of the date first above written.

 

	iFRESH INC.	 
	 	 
	By:	/s/ Long Deng	 
	 	Name: Long Deng	 
	 	Title: CEO & Chairman	 

 

	Dated:	May 17, 2017	 

 

Executive:

 

	/s/ Alfred Chung-Chieh Ying	 
	Alfred Chung-Chieh Ying	 

 

	Dated:	May 17, 2017	 

 

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SCHEDULE A

 

RESPONSIBILITIES

 

		●	Supervising
                                         and directing of the Company’s SEC filings, including annual and quarterly reports
                                         with financial reports according to required regulations.
	 	 	 
		●	Preparation
                                         of quarterly forecasts and yearly budgets, as well as performing financial analysis
                                         and capital forecast.
	 	 	 
		●	Coordination
                                         with independent auditors on quarterly reviews and annual audits, including (i) supervision
                                         of Company staff to prepare financial results, schedules, and documents associated with
                                         such audit or review, (ii) resolution of complicated accounting issues that may arise
                                         during the review or audit, and (iii) ensuring that all financials are properly presented
                                         in accordance with U.S. GAAP, as applicable.
	 	 	 
		●	Leading
                                         the listed Company for capital raise, including coordination with investment banking
                                         firms, preparation of detailed projections and English business plan/presentation, and
                                         meeting with and presenting to potential investors.
	 	 	 
		●	Coordinating
                                         with the IR and PR firms and proactively making and implementing IR management plan and
                                         regular IR presentation to investors, analysts and shareholders regarding financial and
                                         operational matters of the Company.
	 	 	 
		●	Working
                                         with CEO to prepare and implement business development strategies, including future acquisition
                                         and opening of new stores.
	 	 	 
		●	Assisting
                                         with CEO for preparation of grant allocation plan for share options as compensation incentives
                                         for employees in the Company.
	 	 	 
		●	Preparing
                                         and maintain internal control over financial reporting and disclosures controls and procedures.
	 	 	 
		●	Other
                                         service as the CFO is obliged to render to the Company during the Employment Period.

 

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EXHIBIT A

 

RELEASE AND WAIVER OF CLAIMS

 

TO BE SIGNED ON OR FOLLOWING THE SEPARATION
DATE ONLY

 

In consideration of
the payments and other benefits set forth in the Employment Agreement effective as of ________________, to which this form is attached,
I, ___________, hereby furnish iFresh Inc. (the “Company”), with the following release and waiver (“Release
and Waiver”).

 

In exchange for the
consideration provided to me by the Employment Agreement that I am not otherwise entitled to receive, I hereby generally and completely
release the Company and its current and former directors, officers, employees, stockholders, partners, agents, attorneys, predecessors,
successors, parent and subsidiary entities, insurers, affiliates, and assigns (collectively, the “Released Parties”)
from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events,
acts, conduct, or omissions occurring prior to or on the date that I sign this Agreement (collectively, the “Released
Claims”). Except as provided below, the Released Claims include, but are not limited to: (a) all claims arising
out of or in any way related to my employment with the Company, or the termination of that employment; (b) all claims related
to my compensation or benefits from the Company including salary, bonuses, commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (c) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including
claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (e) all federal, state, and
local statutory claims, including claims for discrimination, harassment, retaliation, misclassification, attorneys’ fees,
or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of
1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (the “ADEA”), the fair employment
practices statutes of the state or states in which I have provided services to the Company and/or any other federal, state or local
law, regulation or other requirement. Notwithstanding the foregoing, the following are not included in the Released Claims (the
“Excluded Claims”): (a) any rights or claims under the Agreement or any other written agreement
between the Company and me, including any stock option award agreement or plan, (b) any rights or claims that may arise as a result
of events occurring after the date this Release and Waiver is executed or which otherwise cannot lawfully be waived, (c) any indemnification
rights I may have as a former officer or director of the Company or its subsidiaries or affiliated companies, including any rights
or claims for indemnification I may have pursuant to any written indemnification agreement with the Company to which I am a party,
the charter, bylaws, or operating agreements of the Company, or under applicable law; (d) any claims for benefits under any directors’
and officers’ liability policy maintained by the Company or its subsidiaries or affiliated companies in accordance with the
terms of such policy, (e) any rights or claims under any employee benefit or compensation plan or program in which I participate
or participated (or was eligible to participate), (f) any rights or claims to unemployment compensation, and (g) reimbursement
for business expenses which are consistent with the Company’s reimbursement policy. I hereby represent and warrant that,
other than the Excluded Claims, I am not aware of any claims I have or might have against any of the Released Parties that are
not included in the Released Claims.

 

I expressly waive and
relinquish any and all rights and benefits under any applicable law or statute providing, in substance, that a general release
does not extend to claims which a party does not know or suspect to exist in his or his favor at the time of executing the release,
which if known by him or his would have materially affected the terms of such release.

 

I acknowledge that,
among other rights, I am waiving and releasing any rights I may have under ADEA, that this Release and Waiver is knowing and voluntary,
and that the consideration given for this Release and Waiver is in addition to anything of value to which I was already entitled
as an executive of the Company. If I am 40 years of age or older upon execution of this Release and Waiver, I further acknowledge
that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein
does not relate to claims under the ADEA which may arise after this Release and Waiver is executed; (b) I should consult with an
attorney prior to executing this Release and Waiver; and (c) I have twenty-one (21) days from the date of termination of my employment
with the Company in which to consider this Release and Waiver (although I may choose voluntarily to execute this Release and Waiver
earlier); (d) I have seven (7) days following the execution of this Release and Waiver to revoke my consent to this Release and
Waiver; and (e) this Release and Waiver shall not be effective until the seven (7) day revocation period has expired without my
having previously revoked this Release and Waiver.

 

I acknowledge my continuing
obligations under my Proprietary Information and Inventions Agreement. Pursuant to the Proprietary Information and Inventions Agreement
I understand that among other things, I must not use or disclose any confidential or proprietary information of the Company and
I must immediately return all Company property and documents (including all embodiments of proprietary information) and all copies
thereof in my possession or control. I understand and agree that my right to the severance pay I am receiving in exchange for my
agreement to the terms of this Release and Waiver is contingent upon my continued compliance with my Proprietary Information and
Inventions Agreement.

 

This Release and Waiver
constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the
subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated herein. This
Release and Waiver may only be modified by a writing signed by both me and a duly authorized officer of the Company.

 

	Date:	 	 	By:	 

 

 

14Exhibit 10.1

 

THE TRAVELERS COMPANIES, INC. 
  AMENDED AND RESTATED 2014 STOCK INCENTIVE PLAN

 

1.                                      Purpose. The purposes of The Travelers Companies, Inc. Amended and Restated 2014 Stock Incentive Plan (the “Plan”) are (i) to attract and retain Eligible Persons by providing competitive compensation opportunities, (ii) to provide Eligible Persons with incentive-based compensation in the form of Company Common Stock, (iii) to attract and compensate non-employee directors for service as Board and committee members, (iv) to encourage decision making based upon long-term goals, and (v) to align the interest of Eligible Persons with that of the Company’s shareholders by encouraging such persons to acquire a greater ownership position in the Company.

 

2.                                      Definitions. Wherever used herein, the following terms shall have the respective meanings set forth below:

 

“Award” means an award to a Participant made in accordance with the terms of the Plan.

 

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

 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.

 

“Company” means The Travelers Companies, Inc.

 

“Committee” means the Compensation Committee of the Board, or a subcommittee of that committee, or such other committee of the Board (including, without limitation, the full Board) to which the Board has delegated power to act under or pursuant to the provisions of the Plan.  Unless otherwise determined by the Board, the Committee shall consist of no less than two directors, all of whom shall be intended to qualify as “independent directors” within the meaning of Rule 303A of the New York Stock Exchange, as “outside directors” within the meaning of Section 162(m) of the Code, and as “non-employee directors” within the meaning of Rule 16b-3 under the Exchange Act.

 

“Common Stock” means the common stock of the Company.

 

“Change of Control” means the first to occur of (i) any “person” within the meaning of Section 14(d) of the Exchange Act, other than a Permitted Holder, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of fifty percent (50%) or more of the then-outstanding Common Stock, other than pursuant to a purchase of Common Stock from the Company; (ii) individuals who constitute the Board on the effective date of this Plan, cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the effective date of this Plan, whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least three quarters of the directors comprising the Board on the effective date of this Plan (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination) shall be, for purposes of this clause (ii), considered as though such person were a member of the Board on the

 

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effective date of this Plan; (iii) any plan or proposal for the liquidation of the Company is adopted by the shareholders of the Company; (iv) all or substantially all of the assets of the Company are sold, liquidated or distributed (in one or a series of related transactions) to any person or group other than Permitted Holders; or (v) the consummation of a reorganization, merger, consolidation or other corporate transaction involving the Company (a “Transaction”), in each case, with respect to which the shareholders of the Company immediately prior to such Transaction do not, immediately after the Transaction, own more than fifty percent (50%) of the combined voting power of the Company or other entity resulting from such Transaction in substantially the same proportion as their ownership of the voting power of the Company immediately prior to such Transaction.  Notwithstanding the foregoing, for purposes of Awards hereunder that are subject to the provisions of Section 409A of the Code and the regulations promulgated thereunder (“Code Section 409A”), no Change of Control shall be deemed to have occurred upon an event described in clauses (i) through (v) above that would have the effect of changing the time of payment of such Award unless such event would also constitute a change in the ownership or effective control of, or a change in the ownership of a substantial portion of the assets of, the Company for purposes of Code Section 409A.

 

“Eligible Person” means an employee, non-employee director, consultant or other service provider with respect to the Company or its affiliates.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto.

 

“Fair Market Value” means, as of a specified date, unless otherwise determined by the Committee, the closing trading price of a share of Common Stock on the New York Stock Exchange or on any national securities exchange on which the shares of Common Stock are then listed, or if the shares were not traded on such date, then on the immediately preceding date on which such shares of Common Stock were traded, all as reported by such source as the Committee may select.

 

“ISO” means an incentive stock option as defined in Section 422 of the Code.

 

“Option Proceeds” means the cash actually received by the Company for the exercise price in connection with the exercise of a stock option granted under the Plan plus the tax benefit that could be realized by the Company as a result of such stock option exercise, which tax benefit shall be determined by multiplying (a) the amount that is deductible for federal income tax purposes as a result of such stock option exercise (currently, equal to the amount upon which the Participant’s withholding tax obligation is calculated) times (b) the maximum federal corporate income tax rate for the year of exercise. To the extent a Participant pays the exercise price and/or withholding taxes with shares of Common Stock, Option Proceeds shall not be calculated with respect to the amounts so paid with shares.

 

“Participant” means an Eligible Person who is selected by the Committee to participate in the Plan.

 

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“Permitted Holder” means (i) the Company or any of its affiliates, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities or (iv) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company.

 

“Performance Conditions” may, for purposes of Awards under the Plan, include one or more of: earnings per share, earnings before interest and tax, net income, adjusted net income, operating income, stock price, total shareholder return, market share, return on equity, cash return on equity, achievement of profit, loss and/or expense ratio, revenue targets, cash flows, book value, return on assets or return on capital, improvements in capital structure, revenues or sales, working capital, credit rating, improvement in workforce diversity, employee retention, closing of corporate transactions, customer satisfaction, or implementation, completion or attainment of products or projects. Such Performance Conditions may be based on the attainment of levels set for such financial measures with respect to the Company or any subsidiary, division, business unit, or any combination thereof and may be set as an absolute measure or relative to a designated peer group or index of comparable companies. Such Performance Conditions shall be set and defined by the Committee within the time period prescribed by Section 162(m) of the Code, and for purposes of defining such Performance Conditions, the Committee may elect to exclude the impact of certain extraordinary or non-recurring items. Unless specifically determined by the Committee at the time a Performance Condition is set, the satisfaction of any Performance Condition shall be determined by eliminating the impact of any change in accounting rules which becomes effective following the time such Performance Condition is set.

 

“Prior Plan” means the Company’s Amended and Restated 2004 Stock Incentive Plan.

 

“Prior Plan Award” means an equity award granted under the Prior Plan which remains outstanding as of the effective date of this Plan.

 

3.                                      Shares Subject to the Plan. Subject to adjustment as provided in Section 20, the number of shares of Common Stock which shall be available and reserved for grant of Awards under the Plan shall be 16,900,000.  The shares of Common Stock issued under the Plan may come from authorized and unissued shares or shares purchased in the open market. No Participant may, in any consecutive three calendar year period, be granted Awards of stock options and stock appreciation rights under Sections 7 and 8 of the Plan, respectively, with respect to more than 3,000,000 shares of Common Stock, subject to adjustment as provided in Section 20.

 

Shares of Common Stock subject to an Award granted under this Plan or a Prior Plan Award that expires unexercised, that is forfeited, terminated or canceled, that is settled in cash or other forms of property, or otherwise does not result in the issuance of shares of Common Stock, in whole or in part, shall thereafter again be available for grant under the Plan. If the exercise price of any stock option is satisfied by delivering shares of Common Stock to the Company (by tender of such shares or attestation) or by authorizing the Company to retain shares of Common Stock, only the number of shares of Common Stock delivered to the Participant net of shares of

 

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Common Stock delivered to the Company (by tender or attestation) or retained by the Company shall be deemed delivered for purposes of determining the maximum number of shares of Common Stock available for grant under the Plan. To the extent any shares of Common Stock subject to an Award are not delivered to a Participant because such shares are used to satisfy an applicable tax or other withholding obligations, such shares shall not be deemed to have been delivered for purposes of determining the maximum number of shares of Common Stock available for grant under the Plan. Shares of Common Stock purchased by the Company on the open market using Option Proceeds shall also be available for grant under the Plan; provided, however, that the increase in the number of shares of Common Stock available for grant pursuant to such market purchases shall not be greater than the number that could be repurchased at Fair Market Value on the date of exercise of the stock option giving rise to such Option Proceeds.

 

In addition, the number of shares of Common Stock available for grant under the Plan shall not be reduced by shares subject to Awards granted upon the assumption of or in substitution for awards granted by a business or entity that is merged into or acquired by (or whose assets are acquired by) the Company.

 

4.                                      Administration.

 

4.1                               Committee Authority. The Committee shall have full and exclusive power to administer and interpret the Plan, to grant Awards and to adopt such administrative rules, regulations, procedures and guidelines governing the Plan and the Awards as it may deem necessary in its discretion, from time to time. The Committee’s authority shall include, but not be limited to, the authority to:

 

(i)                                     determine the type and timing of Awards to be granted under the Plan;

 

(ii)                                  select Award recipients and determine the extent of their participation;

 

(iii)                               establish all other terms, conditions, restrictions and limitations applicable to Awards and the shares of Common Stock issued pursuant to Awards, including, but not limited to, those relating to a Participant’s retirement, death, disability, leave of absence or termination of employment; and

 

(iv)                              waive vesting or forfeiture conditions with respect to outstanding Awards.

 

The Committee’s right to make any decision, interpretation or determination under the Plan shall be in its sole and absolute discretion.

 

4.2                               Administration of the Plan. The administration of the Plan shall be managed by the Committee. The Committee shall have the power to prescribe and modify, as necessary, the form of Award document, to correct any defect, supply any omission or clarify any inconsistency in the Plan and/or in any Award document and to take such actions and make such administrative determinations that the Committee deems appropriate in its discretion. Any decision of the Committee in the administration and interpretation of the Plan, as described herein, shall be final, binding and conclusive on all parties concerned, including the Company, its shareholders and subsidiaries and all Participants.

 

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4.3                               Delegation of Authority. To the extent permitted under applicable law, the Committee may at any time delegate to a committee of the Board or one or more officers of the Company some or all of its authority over the administration of the Plan, with respect to persons who are not subject to the reporting requirements of Section 16(a) of the Exchange Act or “covered employees” described in Section 162(m) of the Code.

 

5.                                      Eligibility. The Committee shall determine which Eligible Persons shall be eligible to receive Awards. No Eligible Person shall have at any time the right to receive an Award, or having been selected for an Award, to receive any further Awards.

 

The Committee may also grant stock options, stock appreciation rights, restricted stock, performance awards or other Awards under the Plan in substitution for, or in connection with the assumption of, existing options, stock appreciation rights, restricted stock, performance awards or other awards granted, awarded or issued by another entity and assumed or otherwise agreed to be provided for by the Company pursuant to or by reason of a transaction involving a merger, consolidation, plan of exchange, acquisition of property or stock, separation, reorganization or liquidation to which the Company or any subsidiary is a party. The terms and conditions of the substitute Awards may vary from the terms and conditions set forth in the Plan to the extent the Committee at the time of the grant may deem appropriate to conform, in whole or in part, to the provisions of the awards in substitution for which they are granted.

 

6.                                      Awards. Awards under the Plan may consist of: non-qualified stock options, ISOs, stock appreciation rights, restricted stock, performance awards and any other stock-based awards, including deferred stock units.

 

7.                                      Stock Options.

 

7.1                               Types of Options. Stock options granted under the Plan may be non-qualified stock options, ISOs or any other type of stock option permitted under the Code, as determined by the Committee and evidenced by the document governing the Award.

 

7.2                               ISOs. The terms and conditions of any ISO shall be subject to the provisions of Section 422 of the Code and the terms, conditions, limitations and administrative procedures established by the Committee. At the discretion of the Committee, ISOs may be granted to any employee of the Company and its subsidiaries, as such term is defined in Section 424(f) of the Code (each, a “Subsidiary”). No ISO may be granted to any Participant who, at the time of such grant, owns more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Subsidiary, unless (i) the exercise price for such ISO is at least one-hundred and ten percent (110%) of the Fair Market Value of a share of Common Stock on the date the ISO is granted, and (ii) the date on which such ISO terminates is a date not later than the day preceding the fifth anniversary of the date on which the ISO is granted. Any Participant who disposes of shares acquired upon the exercise of an ISO either within two years after the date of grant of such ISO or within one year after the transfer of such shares to the

 

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Participant, shall notify the Company of such disposition and of the amount realized upon such disposition. The maximum number of shares of Common Stock available under the Plan for issuance as ISOs shall be the full number of shares reserved for issuance under Section 3 hereof.

 

All stock options granted under the Plan are intended to be nonqualified stock options, unless the applicable Award document expressly states that the stock option is intended to be an ISO. If a stock option is intended to be an ISO, and if for any reason such stock option (or portion thereof) shall not qualify as an ISO, then, to the extent of such nonqualification, such stock option (or portion thereof) shall be regarded as a nonqualified stock option granted under the Plan; provided that such stock option (or portion thereof) otherwise complies with the Plan’s requirements relating to nonqualified stock options.

 

7.3                               Exercise Price and Period. The Committee shall establish the exercise price, which price (other than for substitute options pursuant to Section 5 or options intended to meet the requirements described under Section 26 for Eligible Persons outside of the United States) shall be no less than the Fair Market Value of a share of the Common Stock on the date of grant. Each stock option may be exercised in whole or in part on the terms provided in the Award document. The Committee also shall establish the period during which a stock option is exercisable, provided that in no event may a stock option be exercisable for a period of more than ten (10) years from the date of grant.

 

When a stock option is no longer exercisable, it shall be deemed to have lapsed or expired.

 

7.4                               Manner of Exercise. The exercise price of each share as to which a stock option is exercised and, if requested, the amount of any federal, state, local or foreign withholding taxes, shall be paid in full at the time of such exercise. For purposes of this Section 7.4, the exercise date of a stock option shall be the later of the date a notice of exercise is received by the Company and, if applicable, the date payment is received by the Company pursuant to clauses (i), (ii), (iii), (iv) or (v) below.  The exercise of any stock option shall be contingent on and subject to such payment of the exercise price and withholding taxes, or the arrangement for the satisfaction of such payments in a manner satisfactory to the Committee. Such payment shall be made in any of the following forms:

 

(i)                                     in cash (including check, bank draft or money order),

 

(ii)                                  by delivery of shares of Common Stock owned by the Participant (by tender of such shares or by attestation) having a Fair Market Value as of the date of exercise equal to the exercise price for the total number of shares as to which the option is exercised, plus applicable taxes, if requested, subject to (A) the shares so delivered having such characteristics as are required, if necessary, in order to avoid adverse accounting consequences to the Company on account of use of such shares

 

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to pay the exercise price and (B) such other guidelines for the tender of Common Stock as the Committee may establish,

 

(iii)                               if approved by the Committee in the related Award document or other action by the Committee, authorization of the Company to retain from the total number of shares of Common Stock as to which the option is exercised that number of shares of Common Stock having a Fair Market Value as of the date of exercise equal to the exercise price for the total number of shares as to which the option is exercised, plus applicable taxes, if requested (i.e., a “net settlement” arrangement),

 

(iv)                              subject to such rules as may be established by the Committee, through the delivery of irrevocable instructions to a broker to sell Shares obtained upon the exercise of the stock option and to deliver promptly to the Company an amount out of the proceeds of such sale equal to the aggregate exercise price for the Shares being purchased, or

 

(v)                                 such other consideration as the Committee deems appropriate, or by a combination of cash, shares of Common Stock, retention of shares and such other consideration.

 

The Committee may, with the consent of the Participant and subject to Section 21, cancel any outstanding stock option in consideration of a cash payment in an amount not greater than the excess, if any, of the aggregate Fair Market Value (on the date of such cancellation) of the shares subject to the stock option over the aggregate exercise price of such stock option; provided, however, that the Participant’s consent is not required for such a cancellation pursuant to Section 13 hereof.

 

7.5                               Automatic Exercise in Certain Circumstances. Notwithstanding Sections 7.3 and 7.4 of the Plan, to the extent that any portion of a vested and exercisable stock option remains unexercised as of the close of business on the expiration date of the stock option (either the originally scheduled expiration date or such earlier date on which the stock option would otherwise expire pursuant to the applicable Award documents in connection with a termination of employment other than due to gross misconduct or cause) (the “Automatic Exercise Date”), the entire vested and exercisable portion of such stock option will be exercised on the Automatic Exercise Date without any further action by the Participant to whom the stock option was granted (or the person or persons to whom the stock option may have been transferred in accordance with Section 15 of the Plan and any applicable Award documents), but only if (i) the Fair Market Value per share of Common Stock on the Automatic Exercise Date is at least $0.01 greater than the per share exercise price of the stock option, and (ii) no suspension of the automatic option exercise program described under this Section 7.5 is then in effect. The aggregate exercise price for any option exercise under this Section 7.5 and any related withholding taxes will be paid by the Company retaining from the total number of shares of Common Stock as to which the stock option is being exercised a number

 

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of shares having an aggregate Fair Market Value as of the Automatic Exercise Date equal to the amount of such aggregate exercise price plus the applicable withholding taxes. Consistent with Section 26 of the Plan, the Committee shall have the authority to limit or modify the applicability of this provision to Participants who are foreign nationals or employed outside of the United States, or both. Because the responsibility for exercising a stock option rests with the Participant, and because the exercise procedure described in this Section 7.5 is provided only as a convenience to Participants, neither the Committee, the Company nor any of its directors, officers, employees or agents shall incur any liability to any Participant if a stock option expires unexercised because an exercise pursuant to this Section 7.5 fails to occur for any reason.

 

8.                                      Stock Appreciation Rights. An Award of a stock appreciation right shall entitle the Participant, subject to terms and conditions determined by the Committee, to receive upon exercise of the stock appreciation right all or a portion of the excess of the Fair Market Value of a specified number of shares of Common Stock as of the date of exercise of the stock appreciation right over a specified strike price, which price (other than for substitute stock appreciation rights pursuant to Section 5 or stock appreciation rights intended to meet the requirements described under Section 26 for Eligible Persons outside of the United States) shall be no less than the Fair Market Value of a share of the Common Stock on the date of grant of the stock appreciation right or the date of grant of a previously granted related stock option, as determined by the Committee in its discretion. A stock appreciation right may be granted in connection with a previously or contemporaneously granted stock option, or independent of any stock option. If issued in connection with a previously granted related stock option, the Committee shall impose a condition that the exercise of the stock appreciation right cancels the related stock option and exercise of the related stock option cancels the stock appreciation right, and the other terms of the stock appreciation right shall be identical in all respects to the terms of the related stock option except for the medium of payment. Each stock appreciation right may be exercised in whole or in part on the terms provided in the Award document. Stock appreciation rights granted independent of any stock option shall be exercisable for such period as specified by the Committee; provided that, in no event may a stock appreciation right be exercisable for a period of more than ten (10) years. When a stock appreciation right is no longer exercisable, it shall be deemed to have lapsed or terminated. Except as otherwise provided in the applicable agreement, upon exercise of a stock appreciation right, payment to the Participant shall be made in the form of cash, shares of Common Stock or a combination of cash and shares of Common Stock as promptly as practicable after such exercise. The Award document may provide for a limitation upon the amount or percentage of the total appreciation on which payment (whether in cash and/or shares of Common Stock) may be made in the event of the exercise of a stock appreciation right. The Committee may, with the consent of the Participant and subject to Section 21, cancel any outstanding stock appreciation right in consideration of a cash payment in an amount not in excess of the difference between the aggregate Fair Market Value (on the date of such cancellation) of any shares subject to the stock appreciation right and the aggregate strike price of such Shares; provided, however, that the Participant’s consent is not required for such a cancellation in connection with the purchase of such stock appreciation right pursuant to Section 13 hereof. The automatic exercise provisions described under Section 7.5 with respect to stock options shall apply on a similar basis with respect to stock appreciation rights.

 

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9.                                      Restricted Stock. Restricted stock may be granted in the form of actual shares of Common Stock, which shall be evidenced by a certificate with an appropriate legend, or in uncertificated direct registration form, registered in the name of the Participant but held by the Company until the end of the restricted period, as determined by the Committee. As a condition to the receipt of an award of restricted stock in the form of actual shares of Common Stock, a Participant may be required to execute any stock powers, escrow agreements or other documents as may be determined by the Committee. Any conditions, limitations, restrictions, vesting and forfeiture provisions shall be established by the Committee in its discretion.

 

The Committee may, on behalf of the Company, approve the purchase by the Company of any shares subject to an Award of restricted stock, to the extent vested, for an amount equal to the aggregate Fair Market Value of such shares on the date of purchase. Awards of restricted stock may provide the Participant with dividends or dividend equivalents (pursuant to Section 17) and voting rights, if in the form of actual shares, prior to vesting. With respect to Awards of restricted stock intended to qualify as “performance-based compensation” under Section 162(m) of the Code, the Committee shall establish and administer Performance Conditions in the manner described in Section 162(m) and Treasury Regulations promulgated thereunder as an additional condition to the vesting or payment, as applicable, of such Awards.

 

10.                               Performance Awards. Performance awards may be in the form of performance shares valued with reference to a share of Common Stock or performance units valued with reference to an amount of property (including cash) other than shares of Common Stock. Performance awards may also be granted in the form of any other stock-based Award. Performance awards shall entitle a Participant to future payments based upon the attainment of Performance Conditions established in writing by the Committee. Payment shall be made in cash, shares of Common Stock or any combination thereof, as determined by the Committee. The Award document establishing a performance award may establish that a portion of a Participant’s Award will be paid for performance that exceeds the minimum target but falls below the maximum target available to the Award. With respect to Awards of restricted stock intended to qualify as “performance-based compensation” under Section 162(m) of the Code, the Committee shall establish and administer Performance Conditions in the manner described in Section 162(m) and Treasury Regulations promulgated thereunder as an additional condition to the vesting or payment, as applicable, of such performance awards. The Award document shall also provide for the timing of payment.

 

Following the conclusion or acceleration of the period of time designated for attainment of the Performance Conditions, the Committee shall determine the extent to which the Performance Conditions have been attained and shall then cause to be delivered to the Participant (i) a number of shares of Common Stock equal to the number of performance shares or the value of such performance units determined by the Committee to have been earned, and/or (ii) cash equal to the Fair Market Value of such number of performance shares or the value of performance units, as the Committee shall elect or as shall have been stated in the applicable Award document. In no event may performance awards be granted to a single Participant in any calendar year (i) in respect of more than 1,000,000 shares of Common Stock (if the Award is denominated in shares of Common Stock) or (ii) having a maximum payment with a value greater than $15,000,000 (if the Award is denominated in other than shares of Common Stock).

 

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11.                               Other Stock-Based Awards. The Committee may issue unrestricted shares of Common Stock, or other awards denominated in Common Stock (including but not limited to phantom stock and restricted or deferred stock units), to Participants, alone or in tandem with other Awards, in such amounts and subject to such terms and conditions as the Committee shall from time to time in its sole discretion determine. With respect to such Awards intended to qualify as “performance-based compensation” under Section 162(m) of the Code, the Committee shall establish and administer Performance Conditions in the manner described in Section 162(m) and Treasury Regulations promulgated thereunder as an additional condition to the vesting and payment of such Awards in accordance with Section 10.

 

12.                               Award Documents. Each Award under the Plan shall be evidenced by an Award document (which may consist of a term sheet or an agreement, and may be provided in electronic form) setting forth the terms and conditions, as determined by the Committee, which shall apply to such Award, in addition to the terms and conditions specified in the Plan. The Committee may, in its discretion, place terms in the Award documents that provide for the acceleration of any time periods relating to the exercise or realization of any Awards so that such Awards may be exercised or realized in full on or before a date fixed by the Committee, in connection with a Change of Control.

 

13.                               Change of Control. The Committee may, in its discretion, at the time an Award is made hereunder or at any time prior to, coincident with or after the time of a Change of Control:

 

(i)                                     provide for the purchase or cancellation of such Awards, for an amount of cash, if any, equal to the amount which could have been obtained upon the exercise or realization of such rights had such Awards been currently exercisable or payable;

 

(ii)                                  make such adjustment to the Awards then outstanding as the Committee deems appropriate to reflect such transaction or change (including the acceleration of vesting); and/or

 

(iii)                               cause the Awards then outstanding to be assumed, or new rights substituted therefore, by the surviving corporation in such Change of Control.

 

The Committee may, in its discretion, include such further provisions and limitations in any Award document as it may deem equitable and in the best interests of the Company.

 

14.                               Withholding. The Company and its subsidiaries shall have the right to deduct from any payment to be made pursuant to the Plan, or to require prior to the issuance or delivery of any shares of Common Stock or the payment of cash under the Plan, any taxes (whether federal, state, local or foreign) to be withheld therefrom. The Committee may, in its discretion, permit a Participant to elect to satisfy such withholding obligation by any of the methods pursuant to which the exercise price of a stock option may be paid pursuant to Section 7. Any satisfaction of tax obligations through the withholding of shares may only be up to the statutory minimum tax rate. Any fraction of a share of Common Stock required to satisfy such obligation shall be disregarded and the amount due shall instead be paid in cash to the Participant.

 

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15.                               Transferability. Except as provided in this Section, during the lifetime of a Participant to whom an Award is granted, only that Participant (or that Participant’s legal representative in the case of disability) may exercise a stock option or stock appreciation right, or receive payment with respect to restricted stock, a performance award or any other Award. The Committee may permit (on such terms, conditions and limitations as it determines), an Award of restricted stock, stock options, stock appreciation rights, performance shares or performance units or other Awards to be transferred or transferable to family members, charities or estate planning vehicles, in each case, for no consideration and only to the extent permissible by law and, in the case of an ISO, to the extent permissible under Section 422 of the Code. Other than as stated in the preceding sentence, no Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant otherwise than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company.

 

16.                               Deferrals and Settlements. The Committee may require or permit Participants to elect to defer the issuance of shares or the settlement of Awards in cash under such rules and procedures as it may establish under the Plan. It may also provide that deferred settlements include the payment or crediting of interest or dividend equivalents on the deferral amounts. Any such rules or procedures shall comply with the requirements of Code Section 409A, including those with respect to the time when a deferral election may be made, the period of the deferral and the events that would result in the payment of the deferred amount.

 

17.                               Dividends and Dividend Equivalents. An Award (other than a stock option or stock appreciation right) may, if so determined by the Committee, provide the Participant with the right to receive dividend payments or dividend equivalent payments with respect to Common Stock subject to the Award (both before and after the Common Stock subject to the Award is earned, vested or acquired), which payments may be either made currently or credited to an account for the Participant, and may be settled in cash or Common Stock, as determined by the Committee; provided, however, that in the case of any performance-based Awards, any associated dividends or dividend equivalent payments will not be paid unless and until the corresponding portion of the underlying Award is earned. Any such settlements, and any such crediting of dividends or dividend equivalents or reinvestment in shares of Common Stock, may be subject to such conditions, restrictions and contingencies as the Committee shall establish, including the reinvestment of such credited amounts in Common Stock equivalents.

 

18.                               No Right to Awards or Employment. No person shall have any claim or right to be granted an Award, and the grant of an Award shall not be construed as giving a Participant the right to continue in the employ of the Company or its subsidiaries. Further, the Company and its subsidiaries expressly reserve the right at any time to dismiss a Participant without any liability, or any claim under the Plan, except as expressly provided herein or in any Award document entered into hereunder.

 

19.                               Rights as a Shareholder. Unless the Committee determines otherwise, a Participant shall not have any rights as a shareholder with respect to shares of Common Stock covered by an Award until the date the Participant becomes the holder of record with respect to such shares. No adjustment will be made for dividends or other rights for which the record date is prior to such date, except as provided in Section 17.

 

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20.                               Adjustment of and Changes in Common Stock. Except as otherwise provided under Section 13 or as separately addressed pursuant to Section 17, in the event of any Share dividend or split, reorganization, recapitalization, merger, consolidation, spin-off, combination or transaction or exchange of Shares or other corporate exchange, equity restructuring (as defined under Financial Accounting Standards Board (FASB) Accounting Standards Codification 718), or any distribution to shareholders other than regular cash dividends or any transaction similar to the foregoing the Committee shall cause there to be made a substitution or adjustment, as it determines to be equitable in order to prevent a dilution or enlargement of rights relative to other shareholders of Common Stock, to (i) the number and kind of shares of Common Stock or other securities issued or reserved for issuance pursuant to the Plan and to outstanding Awards (including but not limited to the number and kind of shares of Common Stock or other securities to which such Awards are subject, and the exercise or strike price of such Awards) to the extent such other Awards would not otherwise automatically adjust in the equity restructuring, (ii) the maximum number of Shares for which Awards may be granted during a specified period to any Participant, and/or (iii) any other affected terms of such Awards; provided, in each case, that no such adjustment shall be authorized under this Section 20 to the extent that such adjustment would cause an Award to be subject to adverse tax consequences under Section 409A of the Code. In either case, any such substitution or adjustment shall be conclusive and binding for all purposes of the Plan. Unless otherwise determined by the Committee, the number of shares of Common Stock subject to an Award shall always be a whole number. In no event shall an outstanding stock option or stock appreciation right be amended for the sole purpose of decreasing the exercise price or strike price thereof, except in accordance with Section 21 of the Plan.

 

21.                               Amendment; Repricing. The Board may amend, suspend or terminate the Plan or any portion thereof at any time, provided that (i) no amendment shall be made without shareholder approval if such approval is necessary in order for the Plan to continue to comply with the rules of the New York Stock Exchange or if such approval is necessary in order for the Company to avoid being denied a tax deduction under Section 162(m) of the Code, and (ii) no amendment, suspension or termination may materially adversely affect any outstanding Award without the consent of the Participant to whom such Award was made; provided, however, that the Committee may amend the Plan in such manner as it deems necessary to permit the granting of Awards to meet the requirements of the Code or other applicable laws (including, without limitation, to avoid adverse tax or accounting consequences to the Company or to Participants). Except for adjustments pursuant to Section 20, in no event may any stock option or stock appreciation right granted under the Plan be amended to decrease the exercise price or strike price thereof, as the case may be, or be cancelled (i) in exchange for a cash payment exceeding the excess (if any) of the Fair Market Value of shares covered by such stock option or stock appreciation right over the corresponding exercise price or strike price for such Award or (ii) in conjunction with the grant of any new stock option or stock appreciation right or other Award with a lower exercise price or strike price, as the case may be, or otherwise be subject to any action that would be treated under the rules of the New York Stock Exchange as a “repricing” of such stock option or stock appreciation right, unless such amendment, cancellation or action is approved by the Company’s shareholders in accordance with applicable law and rules of the New York Stock Exchange.

 

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22.                               Government and Other Regulations. The obligation of the Company to settle Awards in Common Stock shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell and shall be prohibited from offering to sell or selling any shares of Common Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act of 1933 with the Securities and Exchange Commission or unless the Company has received an opinion of counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale under the Securities Act of 1933 any of the shares of Common Stock to be offered or sold under the Plan. If the shares of Common Stock offered for sale or sold under the Plan are offered or sold pursuant to an exemption from registration under the Securities Act of 1933, the Company may restrict the transfer of such shares and may legend the Common Stock certificates representing such shares in such manner as it deems advisable to ensure the availability of any such exemption.

 

23.                               Relationship to Other Benefits. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company or any subsidiary or affiliate of the Company except as otherwise specifically provided in such other plan.

 

24.                               Governing Law. The Plan shall be construed and its provisions enforced and administered in accordance with the laws of the State of Minnesota applicable to contracts made and performed wholly within such state by residents thereof.

 

25.                               Effective Date. This Plan was approved by the Board on February 5, 2014, subject to approval by the Company’s shareholders, and will become effective upon the date of such shareholder approval. Subject to earlier termination pursuant to Section 21, the Plan shall terminate on February 5, 2024.  No Award may be granted under the Plan after February 5, 2024, but Awards theretofore granted may extend beyond that date.

 

26.                               Foreign Eligible Persons. Awards may be granted to Participants who are foreign nationals or employed outside the United States, or both, on such terms and conditions different from those applicable to Awards to Participants employed in the United States as may, in the judgment of the Committee, be necessary or desirable in order to recognize differences in local law or tax policy. The Committee also may impose conditions on the exercise or vesting of Awards in order to minimize the Company’s obligation with respect to tax equalization for Eligible Persons on assignments outside their home country.

 

27.                               Compliance with Code Section 409A.

 

27.1                        Separation from Service. If any amount shall be payable with respect to any Award hereunder as a result of a Participant’s termination of employment or other service and such amount is subject to the provisions of Code Section 409A, then notwithstanding any other provision of this Plan, a termination of employment or other service will be deemed to have occurred only at such time as the Participant

 

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has experienced a “separation from service” as such term is defined for purposes of Code Section 409A.

 

27.2                        Timing of Payment to a Specified Employee.  If any amount shall be payable with respect to any Award hereunder as a result of a Participant’s “separation from service” at such time as the Participant is a “specified employee” and such amount is subject to the provisions of Code Section 409A, then notwithstanding any other provision of this Plan, no payment shall be made, except as permitted under Code Section 409A, prior to the first day of the seventh (7th) calendar month beginning after the Participant’s separation from service (or the date of his or her earlier death). The Company may adopt a specified employee policy that will apply to identify the specified employees for all deferred compensation plans subject to Code Section 409A; otherwise, specified employees will be identified using the default standards contained in the regulations under Code Section 409A.

 

27.3                        General Compliance with Code Section 409A. Notwithstanding other provisions of the Plan or any Award agreements thereunder, no Award shall be granted, deferred, accelerated, extended, paid out or modified under this Plan in a manner that would result in the imposition of an additional tax under Code Section 409A upon a Participant.  In the event that it is reasonably determined by the Committee that, as a result of Code Section 409A, payments in respect of any Award under the Plan may not be made at the time contemplated by the terms of the Plan or the relevant Award agreement, as the case may be, without causing the Participant holding such Award to be subject to taxation under Code Section 409A, such payments or other benefits shall be deferred, if deferral will make such payment or other benefits compliant under Code Section 409A, or otherwise such payment or other benefits shall be restructured, to the minimum extent necessary, in a manner, reasonably determined by the Committee, that does not cause such an accelerated or additional tax or result in an additional cost to the Company (without any reduction in such payments or benefits ultimately paid or provided to the Participant).  The Company shall use commercially reasonable efforts to implement the provisions of this Section 27 in good faith; provided that neither the Company, the Board, the Committee nor any of the Company’s employees, directors or representatives shall have any liability to Participants with respect to this Section 27.

 

28.                               Awards Subject to the Plan. In the event of a conflict between any term or provision contained in the Plan and a term contained in any Award agreement, the applicable terms and provisions of the Plan will govern and prevail.

 

29.                               Fractional Shares. Notwithstanding other provisions of the Plan or any Award agreements thereunder, the Company shall not be obligated to issue or deliver fractional Shares pursuant to the Plan or any Award and the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Shares or whether such fractional Shares or any rights thereto shall be cancelled, terminated or otherwise eliminated with, or without, consideration.

 

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30.                               Severability. If any provision of the Plan or any Award is, or becomes or is deemed to be invalid, illegal, unenforceable in any jurisdiction or as to any Participant or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Participant or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

 

31.                               Forfeiture/Clawback. Any Awards granted under the Plan may be subject to reduction, cancellation, forfeiture or recoupment to the extent required by applicable law or listed company rules or to the extent otherwise provided in an Award agreement at the time of grant.

 

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