Document:

Appendix A

 

HARVARD BIOSCIENCE, INC.

EMPLOYEE STOCK PURCHASE PLAN

 

(As Amended)

 

The purpose of the Harvard Bioscience, Inc. Employee
Stock Purchase Plan (the “Plan”) is to provide eligible employees of Harvard Bioscience, Inc. (the “Company”)
and certain of its subsidiaries with opportunities to purchase shares of the Company’s common stock, par value $.01 per share (the
“Common Stock”). One Million Nine Hundred Thousand (1,900,000) One
Million Four Hundred Thousand (1,400,000) shares of Common Stock in the aggregate have been approved and reserved for
this purpose. The Plan is intended to constitute an “employee stock purchase plan” within the meaning of Section 423(b) of
the Internal Revenue Code of 1986, as amended (the “Code”), and shall be interpreted in accordance with that intent.

 

1. ADMINISTRATION. The Plan will be administered by
the person or persons (the “Administrator”) appointed by the Company’s Board of Directors (the “Board”)
for such purpose. The Administrator has authority to make rules and regulations for the administration of the Plan, and its interpretations
and decisions with regard thereto shall be final and conclusive. No member of the Board or individual exercising administrative authority
with respect to the Plan shall be liable for any action or determination made in good faith with respect to the Plan or any option granted
hereunder.

 

2. OFFERINGS. The Company will make one or more offerings
to eligible employees to purchase Common Stock under the Plan (“Offerings”). Unless otherwise determined by the Administrator,
the initial Offering will begin on January 1, 2001 and will end on June 30, 2001 (the “Initial Offering”). Thereafter, unless
otherwise determined by the Administrator, an Offering will begin on the first business day occurring on or after each January 1 and July
1 and will end on the last business day occurring on or before the following June 30 and December 31, respectively. The Administrator
may, in its discretion, designate a different period for any Offering, provided that no Offering shall exceed six months in duration or
overlap any other Offering.

 

3. ELIGIBILITY. All employees of the Company (including
employees who are also directors of the Company) and all employees of each Designated Subsidiary (as defined in Section 11) are eligible
to participate in any one or more of the Offerings under the Plan, provided that as of the first day of the applicable Offering (the “Offering
Date”) they are customarily employed by the Company or a Designated Subsidiary for more than 20 hours a week.

 

4. PARTICIPATION. An employee eligible on any Offering
Date may participate in such Offering by submitting an enrollment form to his appropriate payroll location at least 15 business days before
the Offering Date (or by such other deadline as shall be established for the Offering). The form will (a) state a whole percentage to
be deducted from his Compensation (as defined in Section 11) per pay period, (b) authorize the purchase of Common Stock for him in each
Offering in accordance with the terms of the Plan and (c) specify the exact name or names in which shares of Common Stock purchased for
him are to be issued pursuant to Section 10. An employee who does not enroll in accordance with these procedures will be deemed to have
waived his right to participate. Unless an employee files a new enrollment form or withdraws from the Plan, his deductions and purchases
will continue at the same percentage of Compensation for future Offerings, provided he remains eligible.

Notwithstanding the foregoing, participation in the Plan will neither be
permitted nor be denied contrary to the requirements of the Code.

 

5. EMPLOYEE CONTRIBUTIONS. Each eligible employee
may authorize payroll deductions at a minimum of one percent (1%) up to a maximum of ten percent (10%) of his Compensation for each pay
period. The Company will maintain book accounts showing the amount of payroll deductions made by each participating employee for each
Offering. No interest will accrue or be paid on payroll deductions.

 

6. DEDUCTION CHANGES. Except as may be determined
by the Administrator in advance of an Offering, an employee may not increase or decrease his payroll deduction during any Offering, but
may increase or decrease his payroll deduction with respect to the next Offering (subject to the limitations of Section 5) by filing a
new enrollment form at least 15 business days before the next Offering Date (or by such other deadline as shall be established for the
Offering). The Administrator may, in advance of any Offering, establish rules permitting an employee to increase, decrease or terminate
his payroll deduction during an Offering.

 

 

    A-1 

     

    

 

7. WITHDRAWAL. An employee may withdraw from participation
in the Plan by delivering a written notice of withdrawal to his appropriate payroll location. The employee’s withdrawal will be
effective as of the next business day. Following an employee’s withdrawal, the Company will promptly refund to him his entire account
balance under the Plan (after payment for any Common Stock purchased before the effective date of withdrawal). Partial withdrawals are
not permitted. The employee may not begin participation again during the remainder of the Offering, but may enroll in a subsequent Offering
in accordance with Section 4.

 

8. GRANT OF OPTIONS. On each Offering Date, the Company
will grant to each eligible employee who is then a participant in the Plan an option (“Option”) to purchase on the last day
of such Offering (the “Exercise Date”), at the Option Price hereinafter provided for, (a) a number of shares of Common Stock,
which number shall not exceed the number of whole shares which is less than or equal to $12,500 divided by the closing price per share
of Common Stock on the Offering Date, or (b) such other lesser maximum number of shares as shall have been established by the Administrator
in advance of the Offering. The purchase price for each share purchased under each Option (the “Option Price”) will be 85%
of the Fair Market Value of the Common Stock on the Offering Date or the Exercise Date, whichever is less.

 

Notwithstanding the foregoing, no employee may be
granted an option hereunder if such employee, immediately after the option was granted, would be treated as owning stock, possessing five
percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any Parent or Subsidiary (as
defined in Section 11). For purposes of the preceding sentence, the attribution rules of Section 424(d) of the Code shall apply in determining
the stock ownership of an employee, and all stock which the employee has a contractual right to purchase shall be treated as stock owned
by the employee. In addition, no employee may be granted an Option which permits his rights to purchase stock under the Plan, and any
other employee stock purchase plan of the Company and its Parents and Subsidiaries, to accrue at a rate which exceeds $25,000 of the fair
market value of such stock (determined on the option grant date or dates) for each calendar year in which the Option is outstanding at
any time. The purpose of the limitation in the preceding sentence is to comply with Section 423(b)(8) of the Code.

 

9. EXERCISE OF OPTION AND PURCHASE OF SHARES. Each
employee who continues to be a participant in the Plan on the Exercise Date shall be deemed to have exercised his Option on such date
and shall acquire from the Company such number of whole shares of Common Stock reserved for the purpose of the Plan as his accumulated
payroll deductions on such date will purchase at the Option Price, subject to any other limitations contained in the Plan. Any amount
remaining in an employee’s account at the end of an Offering solely by reason of the inability to purchase a fractional share will
be carried forward to the next Offering; any other balance remaining in an employee’s account at the end of an Offering will be
refunded to the employee promptly.

 

10. ISSUANCE OF CERTIFICATES. Certificates representing
shares of Common Stock purchased under the Plan may be issued only in the name of the employee, in the name of the employee and another
person of legal age as joint tenants with rights of survivorship, or in the name of a broker authorized by the employee to be his, or
their, nominee for such purpose.

 

11. DEFINITIONS.

 

The term “Compensation” means the amount
of an employee’s base pay from the Company prior to any reduction for deferrals made under either Code Section 125 or 401(k), including commissions,
but excluding overtime, incentive or bonus awards, allowances and reimbursements for expenses such as relocation allowances
or travel expenses, income or gains on the exercise of Company stock options, and similar extraordinary items.

 

The term “Designated Subsidiary” means
any present or future Subsidiary (as defined below) that has been designated by the Board to participate in the Plan. The Board may so
designate any Subsidiary, or revoke any such designation, at any time and from time to time, either before or after the Plan is approved
by the stockholders.

 

The term “Fair Market Value of the Common Stock”
on any given date means the fair market value of the Common Stock determined in good faith by the Administrator; PROVIDED, HOWEVER, that
if the Common Stock is admitted to quotation on the National Association of Securities Dealers Automated Quotation System (“Nasdaq”),
Nasdaq National System or national securities exchange, the determination shall be made by reference to market quotations. If there are
no market quotations for such date, the determination shall be made by reference to the last date preceding such date for which there
are market quotations.

 

 

    A-2 

     

    

 

The term “Initial Public Offering” means
the consummation of the first fully underwritten, firm commitment public offering pursuant to an effective registration statement under
the Securities Act of 1933, as amended, other than on Forms S-4 or S-8 or their then equivalents, covering the offer and sale by the Company
of its Common Stock.

 

The term “Parent” means a “parent
corporation” with respect to the Company, as defined in Section 424(e) of the Code.

 

The term “Subsidiary” means a “subsidiary
corporation” with respect to the Company, as defined in Section 424(f) of the Code.

 

12. RIGHTS ON TERMINATION OF EMPLOYMENT. If a participating
employee’s employment terminates for any reason before the Exercise Date for any Offering, no payroll deduction will be taken from
any pay due and owing to the employee and the balance in his account will be paid to him or, in the case of his death, to his designated
beneficiary as if he had withdrawn from the Plan under Section 7. An employee will be deemed to have terminated employment, for this purpose,
if the corporation that employs him, having been a Designated Subsidiary, ceases to be a Subsidiary, or if the employee is transferred
to any corporation other than the Company or a Designated Subsidiary.

 

13. SPECIAL RULES. Notwithstanding anything herein
to the contrary, the Administrator may adopt special rules applicable to the employees of a particular Designated Subsidiary, whenever
the Administrator determines that such rules are necessary or appropriate for the implementation of the Plan in a jurisdiction where such
Designated Subsidiary has employees; provided that such rules are consistent with the requirements of Section 423(b) of the Code. Such
special rules may include (by way of example, but not by way of limitation) the establishment of a method for employees of a given Designated
Subsidiary to fund the purchase of shares other than by payroll deduction, if the payroll deduction method is prohibited by local law
or is otherwise impracticable. Any special rules established pursuant to this Section 13 shall, to the extent possible, result in the
employees subject to such rules having substantially the same rights as other participants in the Plan.

 

14. OPTIONEES NOT STOCKHOLDERS. Neither the granting
of an Option to an employee nor the deductions from his pay shall constitute such employee a holder of the shares of Common Stock covered
by an Option under the Plan until such shares have been purchased by and issued to him.

 

15. RIGHTS NOT TRANSFERABLE. Rights under the Plan
are not transferable by a participating employee other than by will or the laws of descent and distribution, and are exercisable during
the employee’s lifetime only by the employee.

 

16. APPLICATION OF FUNDS. All funds received or held
by the Company under the Plan may be combined with other corporate funds and may be used for any corporate purpose.

 

17. ADJUSTMENT IN CASE OF CHANGES AFFECTING COMMON
STOCK. In the event of a subdivision of outstanding shares of Common Stock, or the payment of a dividend in Common Stock, the number of
shares approved for the Plan, and the share limitation set forth in Section 8, shall be increased proportionately, and such other adjustments
shall be made as may be deemed equitable by the Administrator. In the event of any other change affecting the Common Stock, such adjustment
shall be made as may be deemed equitable by the Administrator to give proper effect to such event.

 

18. AMENDMENT OF THE PLAN. The Board may at any time,
and from time to time, amend the Plan in any respect, except that without the approval, within 12 months of such Board action, by the
stockholders, no amendment shall be made increasing the number of shares approved for the Plan or making any other change that would require
stockholder approval in order for the Plan, as amended, to qualify as an “employee stock purchase plan” under Section 423(b)
of the Code.

 

 

    A-3 

     

    

 

19. INSUFFICIENT SHARES. If the total number of shares
of Common Stock that would otherwise be purchased on any Exercise Date plus the number of shares purchased under previous Offerings under
the Plan exceeds the maximum number of shares issuable under the Plan, the shares then available shall be apportioned among participants
in proportion to the amount of payroll deductions accumulated on behalf of each participant that would otherwise be used to purchase Common
Stock on such Exercise Date.

 

20. TERMINATION OF THE PLAN. The Plan may be terminated
at any time by the Board. Upon termination of the Plan, all amounts in the accounts of participating employees shall be promptly refunded.

 

21. GOVERNMENTAL REGULATIONS. The Company’s
obligation to sell and deliver Common Stock under the Plan is subject to obtaining all governmental approvals required in connection with
the authorization, issuance, or sale of such stock.

 

The Plan shall be governed by Delaware law except
to the extent that such law is preempted by federal law.

 

22. ISSUANCE OF SHARES. Shares may be issued upon
exercise of an Option from authorized but unissued Common Stock, from shares held in the treasury of the Company, or from any other proper
source.

 

23. TAX WITHHOLDING. Participation in the Plan is
subject to any minimum required tax withholding on income of the participant in connection with the Plan. Each employee agrees, by entering
the Plan, that the Company and its Subsidiaries shall have the right to deduct any such taxes from any payment of any kind otherwise due
to the employee, including shares issuable under the Plan.

 

24. NOTIFICATION UPON SALE OF SHARES. Each employee
agrees, by entering the Plan, to give the Company prompt notice of any disposition of shares purchased under the Plan where such disposition
occurs within two years after the date of grant of the Option pursuant to which such shares were purchased.

 

25. EFFECTIVE DATE AND APPROVAL OF SHAREHOLDERS. The
Plan shall take effect on the first day of the Company’s Initial Public Offering, subject to approval by the holders of a majority
of the votes cast at a meeting of stockholders at which a quorum is present or by written consent of the stockholders.

 

 

DATE AMENDMENT NO. 1 TO PLAN APPROVED BY BOARD OF DIRECTORS: AUGUST 2,
2011.

 

DATE AMENDMENT NO. 2 TO PLAN APPROVED BY BOARD OF DIRECTORS: FEBRUARY 26,
2013.

 

DATE AMENDMENT NO. 2 TO PLAN APPROVED BY STOCKHOLDERS: MAY 23, 2013.

 

DATE AMENDMENT NO. 3 TO PLAN APPROVED BY BOARD OF DIRECTORS: MARCH 31,
2017.

 

DATE AMENDMENT NO. 3 TO PLAN APPROVED BY STOCKHOLDERS: MAY 18, 2017.

 

DATE AMENDMENT NO. 4 TO PLAN APPROVED BY BOARD OF DIRECTORS: FEBRUARY 26,
2019.

 

DATE AMENDMENT NO. 4 TO PLAN APPROVED BY STOCKHOLDERS: MAY 16, 2019.

 

DATE AMENDMENT NO. 5 TO PLAN APPROVED BY BOARD OF DIRECTORS:
APRIL 3, 2022.

 

DATE AMENDMENT NO. 5 TO PLAN APPROVED BY STOCKHOLDERS: MAY
17, 2022.

 

 

A-4ltum_ex101.htm

EXHIBIT 10.1
 LITHIUM CORPORATION
  
 2022 STOCK OPTION PLAN
  
                 This 2022 Stock Option Plan (the “Plan”) provides for the grant of options to acquire common shares (the “Common Shares”) in the capital of Lithium Corporation, a corporation formed under the laws of the State of Nevada (the “Corporation”). Stock options granted under this Plan that qualify under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) are referred to in this Plan as “Incentive Stock Options” and stock options that do not qualify under Section 422 of the Code are referred to as “Non-Qualified Stock Options”. Incentive Stock Options and Non-Qualified Stock Options granted under this Plan are collectively referred to as “Options”.
  
 1. PURPOSE
  
 1.1 The purpose of this Plan is to retain the services of valued key employees and consultants of the Corporation and such other persons as the Plan Administrator shall select in accordance with Section 3 below, and to encourage such persons to acquire a greater proprietary interest in the Corporation, thereby strengthening their incentive to achieve the objectives of the shareholders of the Corporation, and to serve as an aid and inducement in the hiring of new employees and to provide an equity incentive to consultants and other persons selected by the Plan Administrator.
  
 1.2 This Plan shall at all times be subject to all legal requirements relating to the administration of stock option plans, if any, under applicable corporate laws, applicable United States federal and state securities laws, the Code, the rules of any applicable stock exchange or stock quotation system, and the rules of any foreign jurisdiction applicable to Options granted to residents therein (collectively, the “Applicable Laws”).
  
 2. ADMINISTRATION
  
 2.1 This Plan shall be administered initially by the Board of Directors of the Corporation (the “Board”), except that the Board may, in its discretion, establish a committee composed of two (2) or more members of the Board or two (2) or more other persons to administer the Plan, which committee (the “Committee”) may be an executive, compensation or other committee, including a separate committee especially created for this purpose. The Board or, if applicable, the Committee is referred to herein as the “Plan Administrator”.
  
 2.2 If and so long as the Common Stock is registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Corporation wishes to grant Incentive Stock Options, then the Board shall consider in selecting the Plan Administrator and the membership of any Committee, with respect to any persons subject or likely to become subject to Section 16 of the Exchange Act, the provisions regarding (a) “outside directors” as contemplated by Section 162(m) of the Code, and (b) “Non-Employee Directors” as contemplated by Rule 16b‐3 under the Exchange Act.
  
 2.3 The Committee shall have the powers and authority vested in the Board hereunder (including the power and authority to interpret any provision of the Plan or of any Option). The members of any such Committee shall serve at the pleasure of the Board. A majority of the members of the Committee shall constitute a quorum, and all actions of the Committee shall be taken by a majority of the members present. Any action may be taken by a written instrument signed by all of the members of the Committee and any action so taken shall be fully effective as if it had been taken at a meeting.
  
  	 
	1
	

	 

 
  
 2.4 Subject to the provisions of this Plan and any Applicable Laws, and with a view to effecting the purpose of the Plan, the Plan Administrator shall have sole authority, in its absolute discretion, to:
  
  	  
	 (a)
	 construe and interpret this Plan;

	  
	  
	  

	  
	 (b)
	 define the terms used in the Plan;

	  
	  
	  

	  
	 (c)
	 prescribe, amend and rescind the rules and regulations relating to this Plan;

	  
	  
	  

	  
	 (d)
	 correct any defect, supply any omission or reconcile any inconsistency in this Plan;

	  
	  
	  

	  
	 (e)
	 grant Options under this Plan;

	  
	  
	  

	  
	 (f)
	 determine the individuals to whom Options shall be granted under this Plan and whether the Option is granted as an Incentive Stock Option or a Non-Qualified Stock Option;

	  
	  
	  

	  
	 (g)
	 determine the time or times at which Options shall be granted under this Plan;

	  
	  
	  

	  
	 (h)
	 determine the number of Common Shares subject to each Option, the exercise price of each Option, the duration of each Option and the times at which each Option shall become exercisable;

	  
	  
	  

	  
	 (i)
	 determine all other terms and conditions of the Options; and

	  
	  
	  

	  
	 (j)
	 make all other determinations and interpretations necessary and advisable for the administration of the Plan.

 
   
 2.5 All decisions, determinations and interpretations made by the Plan Administrator shall be binding and conclusive on all participants in the Plan and on their legal representatives, heirs and beneficiaries.
  
 3. ELIGIBILITY
  
 3.1 Incentive Stock Options may be granted to any individual who, at the time the Option is granted, is an employee of the Corporation or any Related Corporation (as defined below) (“Employees”).
  
 3.2 Non-Qualified Stock Options may be granted to Employees and to such other persons who are not Employees as the Plan Administrator shall select, subject to any Applicable Laws.
  
 3.3 Options may be granted in substitution for outstanding Options of another corporation in connection with the merger, consolidation, acquisition of property or stock or other reorganization between such other corporation and the Corporation or any subsidiary of the Corporation. Options also may be granted in exchange for outstanding Options.
  
 3.4 Any person to whom an Option is granted under this Plan is referred to as an “Optionee”. Any person who is the owner of an Option is referred to as a “Holder”.
  
 3.5 As used in this Plan, the term “Related Corporation” shall mean any corporation (other than the Corporation) that is a “Parent Corporation” of the Corporation or “Subsidiary Corporation” of the Corporation, as those terms are defined in Sections 424(e) and 424(f), respectively, of the Code (or any successor provisions) and the regulations thereunder (as amended from time to time).
  
  	 
	2
	

	 

 
  
 4. STOCK
  
 4.1 The Plan Administrator is authorized to grant Options to acquire up to a total of TWELVE MILLION (12,000,000) COMMON SHARES. The number of Common Shares with respect to which Options may be granted hereunder is subject to adjustment as set forth in Section 5.1(m) hereof. In the event that any outstanding Option expires or is terminated for any reason, the Common Shares allocable to the unexercised portion of such Option may again be subject to an Option granted to the same Optionee or to a different person eligible under Section 3 of this Plan; provided however, that any cancelled Options will be counted against the maximum number of shares with respect to which Options may be granted to any particular person as set forth in Section 3 hereof.
  
 5. TERMS AND CONDITIONS OF OPTIONS
  
 5.1 Each Option granted under this Plan shall be evidenced by a written agreement approved by the Plan Administrator (each, an “Agreement”). Agreements may contain such provisions, not inconsistent with this Plan or any Applicable Laws, as the Plan Administrator in its discretion may deem advisable. All Options also shall comply with the following requirements:
  
  	  
	 (a)
	 Number of Shares and Type of Option

	  
	  
	  

	  
	  
	 Each Agreement shall state the number of Common Shares to which it pertains and whether the Option is intended to be an Incentive Stock Option or a Non-Qualified Stock Option; provided that:

 
   
  	  
	 (i)
	 the number of Common Shares that may be reserved pursuant to the exercise of Options granted to any person shall not exceed 5% of the issued and outstanding Common Shares of the Corporation;

	  
	  
	  

	  
	 (ii)
	 in the absence of action to the contrary by the Plan Administrator in connection with the grant of an Option, all Options shall be Non-Qualified Stock Options;

	  
	  
	  

	  
	 (iii)
	 the aggregate fair market value (determined at the Date of Grant, as defined below) of the Common Shares with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year (granted under this Plan and all other Incentive Stock Option plans of the Corporation, a Related Corporation or a predecessor corporation) shall not exceed U.S.$100,000, or such other limit as may be prescribed by the Code as it may be amended from time to time (the “Annual Limit”); and

	  
	  
	  

	  
	 (iv)
	 any portion of an Option which exceeds the Annual Limit shall not be void but rather shall be a Non-Qualified Stock Option.

 
   
  	  
	 (b)
	 Date of Grant

	  
	  
	  

	  
	  
	 Each Agreement shall state the date the Plan Administrator has deemed to be the effective date of the Option for purposes of this Plan (the “Date of Grant”).

	  
	  
	  

 
  	 
	3
	

	 

 
  
  	  
	 (c)
	 Option Price

	  
	  
	  

	  
		 Each Agreement shall state the price per Common Share at which it is exercisable. The Plan Administrator shall act in good faith to establish the exercise price in accordance with Applicable Laws; provided that:

	  
	  
	  
	  

	  
	  
	 (i)
	 the per share exercise price for an Incentive Stock Option or any Option granted to a “covered employee” as such term is defined for purposes of Section 162(m) of the Code shall not be less than the fair market value per Common Share at the Date of Grant as determined by the Plan Administrator in good faith;

	  
	  
	  
	  

	  
	  
	 (ii)
	 with respect to Incentive Stock Options granted to greater-than-ten percent (>10%) shareholders of the Corporation (as determined with reference to Section 424(d) of the Code), the exercise price per share shall not be less than one hundred ten percent (110%) of the fair market value per Common Share at the Date of Grant as determined by the Plan Administrator in good faith; and

	  
	  
	  
	  

	  
	  
	 (iii)
	 Options granted in substitution for outstanding options of another corporation in connection with the merger, consolidation, acquisition of property or stock or other reorganization involving such other corporation and the Corporation or any subsidiary of the Corporation may be granted with an exercise price equal to the exercise price for the substituted option of the other corporation, subject to any adjustment consistent with the terms of the transaction pursuant to which the substitution is to occur.

 
   
  	  
	 (d)
	 Duration of Options

	  
	  
	  

	  
	  
	 At the time of the grant of the Option, the Plan Administrator shall designate, subject to Section 5.1(g) below, the expiration date of the Option, which date shall not be later than five (5) years from the Date of Grant; provided, that the expiration date of any Incentive Stock Option granted to a greater-than-ten percent (>10%) shareholder of the Corporation (as determined with reference to Section 424(d) of the Code) shall not be later than five (5) years from the Date of Grant. In the absence of action to the contrary by the Plan Administrator in connection with the grant of a particular Option, and except in the case of Incentive Stock Options as described above, all Options granted under this Section 5 shall expire five (5) years from the Date of Grant.

	  
	  
	  

	  
	 (e)
	 Vesting Schedule

	  
	  
	  

	  
	  
	 No Option shall be exercisable until it has vested. The vesting schedule for each Option shall be specified by the Plan Administrator at the time of grant of the Option prior to the provision of services with respect to which such Option is granted.

	  
	  
	  

	  
	  
	 The Plan Administrator may specify a vesting schedule for all or any portion of an Option based on the achievement of performance objectives established in advance of the commencement by the Optionee of services related to the achievement of the performance objectives. Performance objectives shall be expressed in terms of objective criteria, including but not limited to, one or more of the following: return on equity, return on assets, share price, market share, sales, earnings per share, costs, net earnings, net worth, inventories, cash and cash equivalents, gross margin or the Corporation’s performance relative to its internal business plan. Performance objectives may be in respect of the performance of the Corporation as a whole (whether on a consolidated or unconsolidated basis), a Related Corporation, or a subdivision, operating unit, product or product line of either of the foregoing. Performance objectives may be absolute or relative and may be expressed in terms of a progression or a range. An Option that is exercisable (in full or in part) upon the achievement of one or more performance objectives may be exercised only following written notice to the Optionee and the Corporation by the Plan Administrator that the performance objective has been achieved.

 
   
  	 
	4
	

	 

 
  
  	  
	 (f)
	 Acceleration of Vesting

	  
	  
	  

	  
	  
	 The vesting of one or more outstanding Options may be accelerated by the Plan Administrator at such times and in such amounts as it shall determine in its sole discretion.

	  
	  
	  

	  
	 (g)
	 Term of Option

 
   
  	  
	 (i)
	 Vested Options shall terminate, to the extent not previously exercised, upon the occurrence of the first of the following events:

 
   
  	  
	 A.
	 the expiration of the Option, as designated by the Plan Administrator in accordance with Section 5.1(d) above;

	  
	  
	  

	  
	 B.
	 the date of an Optionee’s termination of employment or contractual relationship with the Corporation or any Related Corporation for cause (as determined by the Plan Administrator, acting reasonably);

	  
	  
	  

	  
	 C.
	 the expiration of three (3) months from the date of an Optionee’s termination of employment or contractual relationship with the Corporation or any Related Corporation for any reason whatsoever other than cause, death or Disability (as defined below) unless, in the case of a Non-Qualified Stock Option, the exercise period is extended by the Plan Administrator until a date not later than the expiration date of the Option; or

	  
	  
	  

	  
	 D.
	 the expiration of one year (1) from termination of an Optionee’s employment or contractual relationship by reason of death or Disability (as defined below) unless, in the case of a Non-Qualified Stock Option, the exercise period is extended by the Plan Administrator until a date not later than the expiration date of the Option.

 
   
  	  
	 (ii)
	 Notwithstanding Section 5.1(g)(i) above, any vested Options which have been granted to the Optionee in the Optionee’s capacity as a director of the Corporation or any Related Corporation shall terminate upon the occurrence of the first of the following events:

 
  
  	  
	 A.
	 the event specified in Section 5.1(g)(i)A above;

	  
	  
	  

	  
	 B.
	 the event specified in Section 5.1(g)(i)D above; and

	  
	  
	  

	  
	 C.
	 the expiration of three (3) months from the date the Optionee ceases to serve as a director of the Corporation or Related Corporation, as the case may be unless, in the case of a Non-Qualified Stock Option, the exercise period is extended by the Plan Administrator until a date not later than the expiration date of the Option.

 
   
  	 
	5
	

	 

 
  
  	  
	 (iii)
	 Upon the death of an Optionee, any vested Options held by the Optionee shall be exercisable only by the person or persons to whom such Optionee’s rights under such Option shall pass by the Optionee’s will or by the laws of descent and distribution of the Optionee’s domicile at the time of death and only until such Options terminate as provided above.

	  
	  
	  

	  
	 (iv)
	 For purposes of the Plan, unless otherwise defined in the Agreement, “Disability” shall mean medically determinable physical or mental impairment which has lasted or can be expected to last for a continuous period of not less than twelve (12) months or that can be expected to result in death. The Plan Administrator shall determine whether an Optionee has incurred a Disability on the basis of medical evidence acceptable to the Plan Administrator. Upon making a determination of Disability, the Plan Administrator shall, for purposes of the Plan, determine the date of an Optionee’s termination of employment or contractual relationship.

	  
	  
	  

	  
	 (v)
	 Unless accelerated in accordance with Section 5.1(f) above, unvested Options shall terminate immediately upon termination of employment of the Optionee by the Corporation for any reason whatsoever, including death or Disability.

	  
	  
	  

	  
	 (vi)
	 For purposes of this Plan, transfer of employment between or among the Corporation and/or any Related Corporation shall not be deemed to constitute a termination of employment with the Corporation or any Related Corporation. Employment shall be deemed to continue while the Optionee is on military leave, sick leave or other bona fide leave of absence (as determined by the Plan Administrator). The foregoing notwithstanding, employment shall not be deemed to continue beyond the first ninety (90) days of such leave, unless the Optionee’s re-employment rights are guaranteed by statute or by contract.

 
   
  	  
	 (h)
	 Exercise of Options

 
   
  	  
	 (i)
	 Options shall be exercisable, in full or in part, at any time after vesting, until termination. If less than all of the Common Shares included in the vested portion of any Option are purchased, the remainder may be purchased at any subsequent time prior to the expiration of the Option term. Only whole Common Shares may be issued pursuant to an Option, and to the extent that an Option covers less than one (1) share, it is unexercisable.

	  
	  
	  

	  
	 (ii)
	 Options or portions thereof may be exercised by giving written notice to the Corporation, which notice shall specify the number of Common Shares to be purchased, and be accompanied by payment in the amount of the aggregate exercise price for the Common Shares so purchased, which payment shall be in the form specified in Section 5.1(i) below. The Corporation shall not be obligated to issue, transfer or deliver a certificate representing Common Shares to the Holder of any Option, until provision has been made by the Holder, to the satisfaction of the Corporation, for the payment of the aggregate exercise price for all Common Shares for which the Option shall have been exercised and for satisfaction of any tax withholding obligations associated with such exercise. During the lifetime of an Optionee, Options are exercisable only by the Optionee.

 
   
  	 
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	 (i)
	 Payment upon Exercise of Option

	  
	  
	  

	  
	  
	 Upon the exercise of any Option, the aggregate exercise price shall be paid to the Corporation in cash or by certified or cashier’s check. In addition, if pre-approved in writing by the Plan Administrator who may arbitrarily withhold consent, the Holder may pay for all or any portion of the aggregate exercise price by complying with one or more of the following alternatives:

 
   
  	  
	 (i)
	 by delivering a properly executed exercise notice together with irrevocable instructions to a broker promptly to sell or margin a sufficient portion of the Common Shares and deliver directly to the Corporation the amount of sale or margin loan proceeds to pay the exercise price; or

	  
	  
	  

	  
	 (ii)
	 by complying with any other payment mechanism approved by the Plan Administrator at the time of exercise.

 
   
  	  
	 (j)
	 No Rights as a Shareholder

	  
	  
	  

	  
	  
	 A Holder shall have no rights as a shareholder of the Corporation with respect to any Common Shares covered by an Option until such Holder becomes a record holder of such Common Shares, irrespective of whether such Holder has given notice of exercise. Subject to the provisions of Section 5.1(m) hereof, no rights shall accrue to a Holder and no adjustments shall be made on account of dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights declared on, or created in, the Common Shares for which the record date is prior to the date the Holder becomes a record holder of the Common Shares covered by the Option, irrespective of whether such Holder has given notice of exercise.

	  
	  
	  

	  
	 (k)
	 Non-transferability of Options

	  
	  
	  

	  
	  
	 Options granted under this Plan and the rights and privileges conferred by this Plan may not be transferred, assigned, pledged or hypothecated in any manner (whether by operation of law or otherwise) other than by will, by applicable laws of descent and distribution, and shall not be subject to execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of any Option or of any right or privilege conferred by this Plan contrary to the provisions hereof, or upon the sale, levy or any attachment or similar process upon the rights and privileges conferred by this Plan, such Option shall thereupon terminate and become null and void.

	  
	  
	  

	  
	 (l)
	 Securities Regulation and Tax Withholding

 
   
  	  
	 (i)
	 Common Shares shall not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such Common Shares shall comply with all Applicable Laws, and such issuance shall be further subject to the approval of counsel for the Corporation with respect to such compliance, including the availability of an exemption from prospectus and registration requirements for the issuance and sale of such Common Shares. The inability of the Corporation to obtain from any regulatory body the authority deemed by the Corporation to be necessary for the lawful issuance and sale of any Common Shares under this Plan, or the unavailability of an exemption from prospectus and registration requirements for the issuance and sale of any Common Shares under this Plan, shall relieve the Corporation of any liability with respect to the non-issuance or sale of such Common Shares.

 
   
  	 
	7
	

	 

 
  
  	  
	 (ii)
	 As a condition to the exercise of an Option, the Plan Administrator may require the Holder to represent and warrant in writing at the time of such exercise that the Common Shares are being purchased only for investment and without any then-present intention to sell or distribute such Common Shares. If necessary under Applicable Laws, the Plan Administrator may cause a stop-transfer order against such Common Shares to be placed on the stock books and records of the Corporation, and a legend indicating that the Common Shares may not be pledged, sold or otherwise transferred unless an opinion of counsel is provided stating that such transfer is not in violation of any Applicable Laws, may be stamped on the certificates representing such Common Shares in order to assure an exemption from registration. The Plan Administrator also may require such other documentation as may from time to time be necessary to comply with applicable securities laws. THE CORPORATION HAS NO OBLIGATION TO UNDERTAKE REGISTRATION OF OPTIONS OR THE COMMON SHARES ISSUABLE UPON THE EXERCISE OF OPTIONS.

	  
	  
	  

	  
	 (iii)
	 The Holder shall pay to the Corporation by certified or cashier’s check, promptly upon exercise of an Option or, if later, the date that the amount of such obligations becomes determinable, all applicable federal, state, local and foreign withholding taxes that the Plan Administrator, in its discretion, determines to result upon exercise of an Option or from a transfer or other disposition of Common Shares acquired upon exercise of an Option or otherwise related to an Option or Common Shares acquired in connection with an Option. Upon approval of the Plan Administrator, a Holder may satisfy such obligation by complying with one or more of the following alternatives selected by the Plan Administrator:

 
   
  	  
	 A.
	 by delivering to the Corporation Common Shares previously held by such Holder or by the Corporation withholding Common Shares otherwise deliverable pursuant to the exercise of the Option, which Common Shares received or withheld shall have a fair market value at the date of exercise (as determined by the Plan Administrator) equal to any withholding tax obligations arising as a result of such exercise, transfer or other disposition; or

	  
	  
	  

	  
	 B.
	 by complying with any other payment mechanism approved by the Plan Administrator from time to time.

 
   
  	  
	 (iv)
	 The issuance, transfer or delivery of certificates representing Common Shares pursuant to the exercise of Options may be delayed, at the discretion of the Plan Administrator, until the Plan Administrator is satisfied that the applicable requirements of all Applicable Laws and the withholding provisions of the Code have been met and that the Holder has paid or otherwise satisfied any withholding tax obligation as described in Section 5.1(l)(iii) above.

 
  
  	 
	8
	

	 

 
  
  	  
	 (m)
	 Adjustments Upon Changes In Capitalization

 
  
  	  
	 (i)
	 The aggregate number and class of shares for which Options may be granted under this Plan, the number and class of shares covered by each outstanding Option, and the exercise price per share thereof (but not the total price), and each such Option, shall all be proportionately adjusted for any increase or decrease in the number of issued Common Shares of the Corporation resulting from:

 
  
  	  
	 A.
	 a subdivision or consolidation of Common Shares or any like capital adjustment, or

	  
	  
	  

	  
	 B.
	 the issuance of any Common Shares, or securities exchangeable for or convertible into Common Shares, to the holders of all or substantially all of the outstanding Common Shares by way of a stock dividend (other than the issue of Common Shares, or securities exchangeable for or convertible into Common Shares, to holders of Common Shares pursuant to their exercise of options to receive dividends in the form of Common Shares, or securities convertible into Common Shares, in lieu of dividends paid in the ordinary course on the Common Shares).

 
  
  	  
	 (ii)
	 Except as provided in Section 5.1(m)(iii) hereof, upon a merger (other than a merger of the Corporation in which the holders of Common Shares immediately prior to the merger have the same proportionate ownership of common shares in the surviving corporation immediately after the merger), consolidation, acquisition of property or stock, separation, reorganization (other than a mere re-incorporation or the creation of a holding Corporation) or liquidation of the Corporation, as a result of which the shareholders of the Corporation, receive cash, shares or other property in exchange for or in connection with their Common Shares, any Option granted hereunder shall terminate, but the Holder shall have the right to exercise such Holder's Option immediately prior to any such merger, consolidation, acquisition of property or shares, separation, reorganization or liquidation, and to be treated as a shareholder of record for the purposes thereof, to the extent the vesting requirements set forth in the Option agreement have been satisfied.

	  
	  
	  

	  
	 (iii)
	 If the shareholders of the Corporation receive shares in the capital of another corporation ("Exchange Shares") in exchange for their Common Shares in any transaction involving a merger (other than a merger of the Corporation in which the holders of Common Shares immediately prior to the merger have the same proportionate ownership of Common Shares in the surviving corporation immediately after the merger), consolidation, acquisition of property or shares, separation or reorganization (other than a mere re-incorporation or the creation of a holding Corporation), all Options granted hereunder shall be converted into options to purchase Exchange Shares unless the Corporation and the corporation issuing the Exchange Shares, in their sole discretion, determine that any or all such Options granted hereunder shall not be converted into options to purchase Exchange Shares but instead shall terminate in accordance with, and subject to the Holder's right to exercise the Holder's Options pursuant to, the provisions of Section 5.1(m)(ii). The amount and price of converted options shall be determined by adjusting the amount and price of the Options granted hereunder in the same proportion as used for determining the number of Exchange Shares the holders of the Common Shares receive in such merger, consolidation, acquisition or property or stock, separation or reorganization. Unless accelerated by the Board, the vesting schedule set forth in the option agreement shall continue to apply to the options granted for the Exchange Shares.

 
  
  	 
	9
	

	 

 
  
  	  
	 (iv)
	 In the event of any adjustment in the number of Common Shares covered by any Option, any fractional shares resulting from such adjustment shall be disregarded and each such Option shall cover only the number of full shares resulting from such adjustment.

	  
	  
	  

	  
	 (v)
	 All adjustments pursuant to Section 5.1(m) shall be made by the Plan Administrator, and its determination as to what adjustments shall be made, and the extent thereof, shall be final, binding and conclusive.

	  
	  
	  

	  
	 (vi)
	 The grant of an Option shall not affect in any way the right or power of the Corporation to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge, consolidate or dissolve, to liquidate or to sell or transfer all or any part of its business or assets.

	  
	  
	  

 
 6. EFFECTIVE DATE; AMENDMENT; SHAREHOLDER APPROVAL
  
 6.1 Options may be granted by the Plan Administrator from time to time on or after the date on which this Plan is adopted by the Board (the “Effective Date”).
  
 6.2 Unless sooner terminated by the Board, this Plan shall terminate on the tenth anniversary of the Effective Date. No Option may be granted after such termination or during any suspension of this Plan.
  
 6.3 Any Incentive Stock Options granted by the Plan Administrator prior to the ratification of this Plan by the shareholders of the Corporation shall be granted subject to approval of this Plan by the holders of a majority of the Corporation’s outstanding voting shares, passed without meeting pursuant the Nevada General Corporation Law or by voting either in person or by proxy at a duly held shareholders’ meeting within twelve (12) months before or after the Effective Date. If such shareholder approval is sought and not obtained, all Incentive Stock Options granted prior thereto and thereafter shall be considered Non-Qualified Stock Options and any Options granted to Covered Employees will not be eligible for the exclusion set forth in Section 162(m) of the Code with respect to the deductibility by the Corporation of certain compensation.
  
 7. NO OBLIGATIONS TO EXERCISE OPTION
  
 7.1 The grant of an Option shall impose no obligation upon the Optionee to exercise such Option.
  
 8. NO RIGHT TO OPTIONS OR TO EMPLOYMENT
  
 8.1 Whether or not any Options are to be granted under this Plan shall be exclusively within the discretion of the Plan Administrator, and nothing contained in this Plan shall be construed as giving any person any right to participate under this Plan. The grant of an Option shall in no way constitute any form of agreement or understanding binding on the Corporation or any Related Corporation, express or implied, that the Corporation or any Related Corporation will employ or contract with an Optionee for any length of time, nor shall it interfere in any way with the Corporation’s or, where applicable, a Related Corporation’s right to terminate Optionee’s employment at any time, which right is hereby reserved.
  
  	 
	10
	

	 

 
  
 9. APPLICATION OF FUNDS
  
 9.1 The proceeds received by the Corporation from the sale of Common Shares issued upon the exercise of Options shall be used for general corporate purposes, unless otherwise directed by the Board.
  
 10. INDEMNIFICATION OF PLAN ADMINISTRATOR
  
 10.1 In addition to all other rights of indemnification they may have as members of the Board, members of the Plan Administrator shall be indemnified by the Corporation for all reasonable expenses and liabilities of any type or nature, including attorneys’ fees, incurred in connection with any action, suit or proceeding to which they or any of them are a party by reason of, or in connection with, this Plan or any Option granted under this Plan, and against all amounts paid by them in settlement thereof (provided that such settlement is approved by independent legal counsel selected by the Corporation), except to the extent that such expenses relate to matters for which it is adjudged that such Plan Administrator member is liable for willful misconduct; provided, that within fifteen (15) days after the institution of any such action, suit or proceeding, the Plan Administrator member involved therein shall, in writing, notify the Corporation of such action, suit or proceeding, so that the Corporation may have the opportunity to make appropriate arrangements to prosecute or defend the same.
  
 11. AMENDMENT OF PLAN
  
 11.1 The Plan Administrator may, at any time, modify, amend or terminate this Plan or modify or amend Options granted under this Plan, including, without limitation, such modifications or amendments as are necessary to maintain compliance with the Applicable Laws. The Plan Administrator may condition the effectiveness of any such amendment on the receipt of shareholder approval at such time and in such manner as the Plan Administrator may consider necessary for the Corporation to comply with or to avail the Corporation and/or the Optionees of the benefits of any securities, tax, market listing or other administrative or regulatory requirements.
  
 Effective Date: May 16, 2022
  
  	 
	11

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