Document:

Exhibit
4.2

 

THE
REGISTERED HOLDER OF THIS WARRANT AGREES BY HIS, HER OR ITS ACCEPTANCE HEREOF, THAT SUCH HOLDER WILL NOT FOR A PERIOD OF ONE HUNDRED
EIGHTY (180) DAYS FOLLOWING THE EFFECTIVE DATE (THE “EFFECTIVE DATE”) OF THE REGISTRATION STATEMENT (AS DEFINED BELOW):
(A) SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS WARRANT TO ANYONE OTHER THAN OFFICERS OR PARTNERS OF ROTH CAPITAL PARTNERS,
LLC, EACH OF WHOM SHALL HAVE AGREED TO THE RESTRICTIONS CONTAINED HEREIN, IN ACCORDANCE WITH FINRA RULE 5110(G)(1), AND (B) CAUSE
THIS WARRANT OR THE SECURITIES ISSUABLE HEREUNDER TO BE THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT OR CALL TRANSACTION
THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC DISPOSITION OF THIS WARRANT OR THE SECURITIES HEREUNDER, EXCEPT AS PROVIDED FOR IN
FINRA RULE 5110(G)(2).

 

THIS
WARRANT IS NOT EXERCISABLE PRIOR TO [●], 2021 AND IS VOID AFTER 5:00 P.M., EASTERN TIME, [●], 2023.

 

VIVOS
THERAPEUTICS, INC.

 

Underwriter
Warrant To Purchase Common Stock

 

Warrant
No.: ____________

Number
of Shares of Common Stock: _____________

Date
of Issuance: [●] (“Issuance Date”)

 

Vivos
Therapeutics, Inc., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Roth Capital Partners, LLC, the registered holder hereof or its
permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company,
at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant to Purchase Common Stock (including any
Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, this “Warrant”), at any
time or times on or after the 180th day after the Effective Date (the “Exercisability Date”), but not after
5:00 p.m., New York time, on the Expiration Date (as defined below), [______________ (_____________)] fully paid nonassessable
shares of Common Stock (the “Warrant Shares”). Except as otherwise defined herein, capitalized terms in this
Warrant shall have the meanings set forth in Section 15. This Warrant is one of the Underwriter Warrants to Purchase Common
Stock (collectively, the “Warrants”) issued pursuant to: (i) Section 4(f) of the Underwriting Agreement, dated
as of [●], 2020, by and between the Company and Roth Capital Partners, LLC (the “Underwriting Agreement”)
and (ii) the Company’s Registration Statement on Form S-1 (File No.: 333-249412) (the “Registration Statement”).

 

    	 

     

    

 

1.
EXERCISE OF WARRANT.

 

(a)
Mechanics of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day
on or after the Exercisability Date, in whole or in part (but not as to fractional shares), by delivery of a written notice, in
the form attached hereto as Exhibit A (the “Exercise Notice”) of the Holder’s election to exercise
this Warrant. No ink-original Exercise Notice shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Exercise Notice form be required. Within two (2) Trading Days of the delivery of such Exercise Notice,
if the Holder is not electing a Cashless Exercise (as defined below) pursuant to Section 1(d), the Holder shall pay to
the Company an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant
is being exercised (the “Aggregate Exercise Price”) in cash or wire transfer of immediately available funds
(a “Cash Exercise”). The Holder shall not be required to surrender this Warrant in order to effect an exercise
hereunder; provided, however, that in the event that this Warrant is exercised in full or for the remaining unexercised
portion hereof, the Holder shall deliver this Warrant to the Company for cancellation within a reasonable time after such exercise.
On or before the first Trading Day following the date on which the Company has received the Exercise Notice (the date upon which
the Company has received the Exercise Notice, the “Exercise Date”), the Company shall transmit by facsimile
or e-mail transmission an acknowledgment of confirmation of receipt of the Exercise Notice to the Holder and the Company’s
transfer agent for the Common Stock (the “Transfer Agent”). The Company shall deliver any objection to the
Exercise Notice on or before the second Trading Day following the date on which the Company has received the Exercise Notice.
On or before the second Trading Day following the date on which the Company has received the Exercise Notice, provided the Aggregate
Exercise Price has been received by the Company prior to such Trading Day, the Company shall, (X) provided that the Transfer
Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program (the
“FAST Program”) and so long as the certificates therefor are not required to bear a legend regarding restriction
on transferability, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder
is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit
Withdrawal Agent Commission system, or (Y), if the Transfer Agent is not participating in the FAST Program or if the certificates
are required to bear a legend regarding restriction on transferability, issue and dispatch by overnight courier to the address
as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder
or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery
of the Exercise Notice and payment of the Aggregate Exercise Price, the Holder shall be deemed for all corporate purposes to have
become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date
such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such
Warrant Shares, as the case may be. If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a)
and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant
Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three (3) Trading
Days after any such submission and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing
the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the
number of Warrant Shares with respect to which this Warrant has been and/or is exercised. The Company shall pay any and all taxes
and other expenses of the Company (including overnight delivery charges) that may be payable with respect to the issuance and
delivery of Warrant Shares upon exercise of this Warrant; provided, however, that the Company shall not be required
to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares
or Warrants in a name other than that of the Holder or an affiliate thereof. The Holder shall be responsible for all other tax
liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

 

    	-2-

     

    

 

(b)
Exercise Price. For purposes of this Warrant, “Exercise Price” means $[●]1, subject
to adjustment as provided herein.

 

(c)
Company’s Failure to Timely Deliver Securities. If the Company shall fail for any reason or for no reason to issue
to the Holder within five (5) Business Days of the Exercise Date a certificate for the number of shares of Common Stock to which
the Holder is entitled and register such shares of Common Stock on the Company’s stock register or to credit the Holder’s
balance account with DTC for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise
of this Warrant, and if on or after such Trading Day the Holder purchases, or another Person purchases on the Holder’s behalf
or for the Holder’s account (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction
of a sale by the Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company
(a “Buy-In”), then the Company shall, within three (3) Business Days after the Holder’s written request
and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase
price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”),
at which point the Company’s obligation to deliver such certificate (and to issue such Warrant Shares) shall terminate,
or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant Shares
and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of
shares of Common Stock, times (B) the Weighted Average Price (as reported by Bloomberg) on the date of the event giving rise to
the Company’s obligation to deliver such certificate.

 

(d)
Cashless Exercise. The Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making
the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price,
elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according
to the following formula (a “Cashless Exercise”):

 

 

1 To be equal to 125% of the public offering price.

 

    	-3-

     

    

 

Net
Number = (A - B) (X)

                                (A)

 

For
purposes of the foregoing formula:

 

	 	A= 	the
    Weighted Average Price for the five (5) consecutive Trading Days ending on the date immediately preceding the date of the
    Exercise Notice.
	 	 	 
	 	B= 	the Exercise Price
    then in effect for the applicable Warrant Shares at the time of such exercise.
	 	 	 
	 	X= 	the total number
    of shares with respect to which this Warrant is then being exercised.

 

(e)
Rule 144. For purposes of Rule 144(d) promulgated under the Securities Act of 1933, as amended, as in effect on the date
hereof, assuming the Holder is not an affiliate of the Company, it is intended that the Warrant Shares issued in a Cashless Exercise
shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced,
on the Issuance Date.

 

(f)
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed.

 

(g)
Beneficial Ownership. The Company shall not effect the exercise of this Warrant, and the Holder shall not have the right
to exercise this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person’s
affiliates) would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the shares of Common Stock
outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of
shares of Common Stock beneficially owned by such Person and its affiliates shall include the number of shares of Common Stock
issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude
shares of Common Stock which would be issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially
owned by such Person and its affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other
securities of the Company beneficially owned by such Person and its affiliates (including, without limitation, any convertible
notes or convertible preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation
contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be
calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number
of outstanding shares of Common Stock as reflected in the most recent of (1) the Company’s most recent Form 10-K, Form 10-Q,
Current Report on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be, (2) a more
recent public announcement by the Company or (3) any other notice by the Company or the Transfer Agent setting forth the number
of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of the Holder, the Company
shall within two (2) Business Days confirm to the Holder the number of shares of Common Stock then outstanding. In any case, the
number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities
of the Company, including this Warrant, by the Holder and its affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. By written notice to the Company, the Holder may from time to time increase or decrease the
Maximum Percentage to any other percentage not in excess of 9.99% specified in such notice; provided that (i) any such
increase will not be effective until the sixty-first (61st) day after such notice is delivered to the Company, and (ii) any such
increase or decrease will apply only to the Holder. The provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 1(g) to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation. The Holder shall be responsible, at the Holder’s
cost, for any filings with the Securities and Exchange Commission required to be made by the Holder on account of its ownership
of this Warrant or the underlying Warrant Shares.

 

    	-4-

     

    

 

2.
ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be
adjusted from time to time as follows:

 

(a)
Voluntary Adjustment by Company. The Company may at any time during the term of this Warrant reduce the then current Exercise
Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

 

(b)
Adjustment upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Issuance Date subdivides
(by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of
its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such
subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company
at any time on or after the Issuance Date combines (by any stock split, stock dividend, recapitalization, reorganization, scheme,
arrangement or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will
be proportionately decreased. Any adjustment under this Section 2(b) shall become effective at the close of business on
the date the subdivision or combination becomes effective.

 

3.
RIGHTS UPON PRO RATA DISTRIBUTION OF ASSETS.

 

(a)
During such time as this Warrant is outstanding, if the Company shall declare or make any pro rata dividend or other distribution
of its assets (or rights to acquire its assets) to holders of Common Stock, payable otherwise than in cash, or a cash dividend
or distribution payable otherwise than out of retained earnings, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), then, in each
such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated
therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without
regard to any limitations on exercise hereof) immediately before the date of which a record is taken for such Distribution, or,
if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the participation
in such Distribution (provided, however, that, to the extent that the Holder’s right to participate in any such Distribution
would result in the Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution
to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent)
and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding the Maximum Percentage).

 

    	-5-

     

    

 

4.
PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)
Purchase Rights. In addition to any adjustments pursuant to Section 2 above, if at any time prior to the Expiration
Date the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities
or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”), then
the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which
the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of
this Warrant (without regard to any limitations on the exercise of this Warrant) immediately before the date on which a record
is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record
holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

 

(b)
Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor
Entity assumes in writing (unless the Company is the Successor Entity) all of the obligations of the Company under this Warrant
in accordance with the provisions of this Section (4)(b) pursuant to written agreements in form and substance reasonably
satisfactory to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements
to deliver to each holder of the Warrants in exchange for such Warrants a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant, including, without limitation, an adjusted exercise price
equal to the value for the shares of Common Stock reflected by the terms of such Fundamental Transaction, and exercisable for
a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise
of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and
reasonably satisfactory to the Required Holders. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall
succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of
the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor
Entity had been named as the Company herein. Upon consummation of the Fundamental Transaction, the Successor Entity shall deliver
to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the
Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) issuable
upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of the common equity (or its equivalent) of
the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of
such Fundamental Transaction had this Warrant been converted immediately prior to such Fundamental Transaction, as adjusted in
accordance with the provisions of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to
the consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities
or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company
shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this
Warrant at any time after the consummation of the Corporate Event but prior to the Expiration Date, in lieu of shares of Common
Stock (or other securities, cash, assets or other property) purchasable upon the exercise of this Warrant prior to such Corporate
Event, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or
subscription rights) which the Holder would have been entitled to receive upon the happening of such Corporate Event had this
Warrant been exercised immediately prior to such Corporate Event. Provision made pursuant to the preceding sentence shall be in
a form and substance reasonably satisfactory to the Required Holders.

 

    	-6-

     

    

 

(c)
Applicability to Successive Transactions. The provisions of this Section shall apply similarly and equally to successive
Fundamental Transactions and Corporate Events and shall be applied without regard to any limitations on the exercise of this Warrant.

 

5.
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of
Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution,
issuance or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, and will at all times in good faith comply with all the provisions of this Warrant and take all actions
consistent with effectuating the purposes of this Warrant. Without limiting the generality of the foregoing, the Company (i) shall
not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price
then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long
as this Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares
of Common Stock, solely for the purpose of effecting the exercise of this Warrant, 100% of the number of shares of Common Stock
issuable upon exercise of this Warrant then outstanding (without regard to any limitations on exercise).

 

6.
WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s
capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital
of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in
such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to
vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock,
consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise
of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to
purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities
are asserted by the Company or by creditors of the Company.

 

    	-7-

     

    

 

7.
REISSUANCE OF WARRANTS.

 

(a)
Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company and deliver
the completed and executed Assignment Form, in the form attached hereto as Exhibit B, whereupon the Company will forthwith
issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder
may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less then
the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section
7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b)
Lost, Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the
loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification
undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of
this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing
the right to purchase the Warrant Shares then underlying this Warrant.

 

(c)
Exchangeable for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the
right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right
to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided,
however, that no Warrants for fractional shares of Common Stock shall be given.

 

(d)
Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant,
such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant,
the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to
Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares
of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant
Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is
the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

    	-8-

     

    

 

8.
NOTICES. The Company shall provide Holder with prompt written notice of all actions taken pursuant to this Warrant. Whenever
notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in writing, will
be mailed (a) if within the domestic United States by first-class registered or certified airmail, or nationally recognized overnight
express courier, postage prepaid, or by facsimile or (b) if delivered from outside the United States, by International Federal
Express or facsimile, and (c) will be deemed given (i) if delivered by first-class registered or certified mail domestic, three
(3) Business Days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one (1) Business Day after so
mailed, (iii) if delivered by International Federal Express, two (2) Business Days after so mailed and (iv) if delivered by facsimile,
upon electronic confirmation of receipt, and will be delivered and addressed as follows:

 

if
to the Company, to:

 

	 	Vivos
    Therapeutics, Inc.
	 	9137
    Ridgeline Boulevard, Suite 135
	 	Highlands
    Ranch, CO 80129
	 	Attn:
    Chief Executive Officer
	 	Facsimile:
    [___________________]

 

with
a copy (which shall not constitute notice) to:

 

	 	Ellenoff
    Grossman & Schole LLP
	 	1345
    Avenue of the Americas, 11th Floor
	 	Attn:
    Barry I. Grossman, Esq.
	 	Email:
    bigrossman@egsllp.com
	 	Facsimile:
    212-370-7889

 

if
to the Holder, at the address of the Holder appearing on the books of the Company.

 

9.
AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company
may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has
obtained the written consent of the Required Holders. Any such amendment shall apply to all Warrants and be binding upon all registered
holders of such Warrants.

 

10.
GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. This Warrant shall be governed by, and construed in accordance
with, the internal laws of the State of New York, without reference to the choice of law provisions thereof. The Company and,
by accepting this Warrant, the Holder, each irrevocably submits to the exclusive jurisdiction of the courts of the State of New
York located in New York County and the United States District Court for the Southern District of New York for the purpose of
any suit, action, proceeding or judgment relating to or arising out of this Warrant and the transactions contemplated hereby.
Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world
by the same methods as are specified for the giving of notices under this Warrant. The Company and, by accepting this Warrant,
the Holder, each irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the
laying of venue in such court. The Company and, by accepting this Warrant, the Holder, each irrevocably waives any objection to
the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such
suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE COMPANY AND, BY
ITS ACCEPTANCE HEREOF, THE HOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT
AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

    	-9-

     

    

 

11.
CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not
be construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall
not form part of, or affect the interpretation of, this Warrant.

 

12.
DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation
of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile or email
within two (2) Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder.
If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant
Shares within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Holder,
then the Company shall, within two (2) Business Days submit via facsimile or email (a) the disputed determination of the Exercise
Price to an independent, reputable investment bank selected by the Company and approved by the Holder, which approval shall not
be unreasonably withheld, or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent,
outside accountant. The Company shall cause the investment bank or the accountant, as the case may be, to perform the determinations
or calculations and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives
the disputed determinations or calculations. The prevailing party (which, for purposes of this Warrant, is the party whose determinations
or calculations is closest to those of the investment bank or the accountant, as the case may be) in any dispute resolved pursuant
to this Section 12 shall be entitled to the full amount of all reasonable expenses, including all costs and fees paid or
incurred in good faith, in relation to the resolution of such dispute. Such investment bank’s or accountant’s determination
or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

 

13.
REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance
and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure
by the Company to comply with the terms of this Warrant.

 

    	-10-

     

    

 

14.
TRANSFER. Subject to applicable laws and the restrictions set forth in this paragraph, this Warrant may be offered for
sale, sold, transferred or assigned without the consent of the Company. The Holder agrees that, during the Lock-Up Period (as
defined below) contained in Rule 5110(g)(1) of the Financial Industry Regulatory Authority, Inc. (“FINRA”),
it will not (a) sell, transfer, assign, pledge, hypothecate or otherwise transfer this Warrant (including any Warrant Shares issued
or issuable hereunder) other than to a bona fide officer or partner of the Holder or any selected dealer in connection with the
offering contemplated by the Underwriting Agreement, in each case in accordance with FINRA Conduct Rule 5110(g)(1), or (b) cause
this Warrant or any Warrant Shares issued or issuable hereunder to be the subject of any hedging, short sale, derivative, put
or call transaction that would result in the effective economic disposition of this Warrant or any Warrant Shares issued or issuable
hereunder, except as provided for in FINRA Rule 5110(g)(2). As used herein, the term “Lock-Up Period” means
the period beginning on the date that the registration statement registering this Warrant is declared effective by the Securities
and Exchange Commission (the “Effective Date”) and ending on the one hundred eighty day (180) anniversary of
the Effective Date. In addition, notwithstanding the other terms of this Warrant or any agreement between the Company and the
Holder, the Holder agrees that, as required by FINRA Rule 5110(f)(2)(H): (i) this Warrant may not be exercised more than five
(5) years from the Effective Date; (ii) the Holder shall not have more than one demand registration right at the Company’s
expense; (iii) the Holder shall not have the right to demand registration of this Warrant or the Warrant Shares more than five
(5) years from the earlier of the Effective Date or the commencement of sales of the public offering contemplated by the Underwriting
Agreement; (iv) the Holder shall not have the right to piggyback registration with respect to this Warrant or the Warrant Shares
more than seven (7) years from the earlier of the Effective Date or the commencement of sales of the public offering contemplated
by the Underwriting Agreement; (v) this Warrant may not have anti-dilution terms that allow the Holder and related persons to
receive more shares or to exercise at a lower price than originally agreed upon at the time of the public offering, when the public
shareholders have not been proportionally affected by a stock split, stock dividend, or other similar event; and (vi) this Warrant
may not have anti-dilution terms that allow the Holder and related persons to receive or accrue cash dividends prior to the exercise
or conversion of the security.

 

15.
CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)
“Bloomberg” means Bloomberg Financial Markets.

 

(b)
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City
of New York are authorized or required by law to remain closed.

 

(c)
“Common Stock” means (i) the Company’s shares of Common Stock, par value $0.0001 per share, and (ii)
any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification
of such Common Stock.

 

(d)
“Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

 

(e)
“Eligible Market” means the Principal Market, The New York Stock Exchange, Inc., The NYSE, American, The Nasdaq
Global Market or The Nasdaq Global Select Market.

 

    	-11-

     

    

 

(f)
“Expiration Date” means the third (3rd) anniversary of the Effective Date or, if such date falls on a day other
than a Trading Day or on which trading does not take place on the Principal Market, or, if the Principal Market is not the principal
trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock
is then traded (a “Holiday”), the next date that is not a Holiday.

 

(g)
“Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions,
(i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person (but excluding
a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company), or (ii) sell,
assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another
Person, or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than
the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the Person or Persons making
or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv)
consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares
of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), or (v)
reorganize, recapitalize or reclassify its Common Stock, or (vi) any “person” or “group” (as these terms
are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented
by issued and outstanding Common Stock.

 

(h)
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible
Securities.

 

(i)
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such
Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation
of the Fundamental Transaction.

 

(j)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

 

(k)
“Principal Market” means The Nasdaq Capital Market.

 

(l)
“Required Holders” means, as of any date, the holders of at least a majority of the Warrants outstanding as
of such date.

 

(m)
“Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting
from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such
Fundamental Transaction shall have been entered into.

 

    	-12-

     

    

 

(n)
“Trading Day” means any day on which the Common Stock are traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market
on which the Common Stock are then traded; provided that “Trading Day” shall not include any day on which the
Common Stock are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock are suspended
from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in
advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(o)
“Weighted Average Price” means, for any security as of any date, the dollar volume-weighted average price for
such security on the Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal
Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the
Principal Market publicly announces is the official close of trading), as reported by Bloomberg through its “Volume at Price”
function or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter
market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time (or such
other time as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time
(or such other time as the Principal Market publicly announces is the official close of trading), as reported by Bloomberg, or,
if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest
closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “OTC
Pink” by OTC Markets Group, LLC. If the Weighted Average Price cannot be calculated for a security on a particular date
on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as mutually
determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such
security, then such dispute shall be resolved pursuant to Section 12 with the term “Weighted Average Price”
being substituted for the term “Exercise Price.” All such determinations shall be appropriately adjusted for any stock
dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

 

[Signature
Page Follows]

 

    	-13-

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Underwriter Warrant to Purchase Common Stock to be duly executed as of the Issuance
Date set out above.

 

	 	VIVOS
    THERAPEUTICS, INC.
	 	 	 
	 	By:	                   
	 	Name:	 
	 	Title:
    	 

 

    	 

     

    

 

EXHIBIT
A

 

EXERCISE
NOTICE

 

TO
BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT
TO PURCHASE COMMON STOCK

 

VIVOS
THERAPEUTICS, INC.

 

The
undersigned holder hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”)
of Vivos Therapeutics, Inc., a Delaware corporation (the “Company”), evidenced by the attached Warrant to Purchase
Common Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective
meanings set forth in the Warrant.

 

1.
Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as:

 

____________
a “Cash Exercise” with respect to _________________ Warrant Shares; and/or

 

____________
a “Cashless Exercise” with respect to _______________ Warrant Shares.

 

2.
Payment of Exercise Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the
Warrant Shares to be issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________
to the Company in accordance with the terms of the Warrant.

 

3.
Delivery of Warrant Shares. The Company shall deliver to the holder __________ Warrant Shares in accordance with the
terms of the Warrant and, after delivery of such Warrant Shares, _____________ Warrant Shares remain subject to the Warrant.

 

Date:
_______________ __, ______

 

	 	 
	Name
    of Registered Holder	 

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	A-1

     

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

VIVOS
THERAPEUTICS, INC.

 

(To
assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 
	 	(Please
    Print)
	Address:	 
	 	(Please
    Print)
	Dated:
    _______________ __, ______	 
	Holder’s
    Signature:______________________________	 
	Holder’s
    Address:_______________________________	 

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

 

    	B-1a2018_11x16inference-201

                     INFERENCE TECHNOLOGIES GROUP INC.                             2018 EQUITY INCENTIVE PLAN                ADOPTED BY THE BOARD OF DIRECTORS: November 16, 2018                        TERMINATION DATE: November 15, 2028                                             1.    General.         (a)   Eligible Stock Award Recipients.  Employees, Directors and Consultants are eligible to  receive Stock Awards.         (b)   Available Stock Awards.  The Plan provides for the grant of the following types of  Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Stock Appreciation  Rights, (iv) Restricted Stock Awards, (v) Restricted Stock Unit Awards and (vi) Other Stock Awards.         (c)   Purpose.  The Plan, through the grant of Stock Awards, is intended to help the Company  secure and retain the services of eligible award recipients, provide incentives for such persons to exert  maximum efforts for the success of the Company and any Affiliate and provide a means by which the  eligible recipients may benefit from increases in value of the Common Stock.   2.    Administration.         (a)   Administration by the Board.  The Board will administer the Plan.  The Board may  delegate administration of the Plan to a Committee or Committees, as provided in Section 2(c).         (b)   Powers of the Board.  The Board will have the power, subject to, and within the  limitations of, the express provisions of the Plan:               (i)   To determine (A) who will be granted Stock Awards; (B) when and how each  Stock Award will be granted; (C) what type of Stock Award will be granted; (D) the provisions of each  Stock Award (which need not be identical), including when a person will be permitted to exercise or  otherwise receive cash or Common Stock under the Stock Award; (E) the number of shares of Common  Stock subject to, or the cash value of, a Stock Award; and (F) the Fair Market Value applicable to a Stock  Award.               (ii)  To construe and interpret the Plan and Stock Awards granted under it, and to  establish, amend and revoke rules and regulations for administration of the Plan and Stock Awards.  The  Board, in the exercise of these powers, may correct any defect, omission or inconsistency in the Plan or in  any Stock Award Agreement, in a manner and to the extent it will deem necessary or expedient to make  the Plan or Stock Award fully effective.               (iii) To settle all controversies regarding the Plan and Stock Awards granted under it.               (iv)  To accelerate, in whole or in part, the time at which a Stock Award may be  exercised or vest (or the time at which cash or shares of Common Stock may be issued in settlement  thereof).                                             1.    

 

             (v)   To suspend or terminate the Plan at any time.  Except as otherwise provided in   the Plan or a Stock Award Agreement, suspension or termination of the Plan will not impair a   Participant’s rights under the Participant’s then-outstanding Stock Award without the Participant’s written   consent except as provided in subsection (viii) below.                (vi)  To amend the Plan in any respect the Board deems necessary or advisable,   including, without limitation, by adopting amendments relating to Incentive Stock Options and certain   nonqualified deferred compensation under Section 409A of the Code and/or bringing the Plan or Stock   Awards granted under the Plan into compliance with the requirements for Incentive Stock Options or   ensuring that they are exempt from, or compliant with, the requirements for nonqualified deferred   compensation under Section 409A of the Code, subject to the limitations, if any, of applicable law. If   required by applicable law or listing requirements, and except as provided in Section 9(a) relating to   Capitalization Adjustments, the Company will seek stockholder approval of any amendment of the Plan   that (A) materially increases the number of shares of Common Stock available for issuance under the   Plan, (B) materially expands the class of individuals eligible to receive Stock Awards under the Plan,   (C) materially increases the benefits accruing to Participants under the Plan, (D) materially reduces the   price at which shares of Common Stock may be issued or purchased under the Plan, (E) materially   extends the term of the Plan, or (F) materially expands the types of Stock Awards available for issuance   under the Plan.  Except as otherwise provided in the Plan or a Stock Award Agreement, no amendment of   the Plan will materially impair a Participant’s rights under an outstanding Stock Award without the   Participant’s written consent.                (vii) To submit any amendment to the Plan for stockholder approval, including, but  not limited to, amendments to the Plan intended to satisfy the requirements of Section 422 of the Code  regarding Incentive Stock Options.               (viii) To approve forms of Stock Award Agreements for use under the Plan and to  amend the terms of any one or more Stock Awards, including, but not limited to, amendments to provide   terms more favorable to the Participant than previously provided in the Stock Award Agreement, subject   to any specified limits in the Plan that are not subject to Board discretion; provided however, that a   Participant’s rights under any Stock Award will not be impaired by any such amendment unless (A) the   Company requests the consent of the affected Participant, and (B) such Participant consents in writing.    Notwithstanding the foregoing, (1) a Participant’s rights will not be deemed to have been impaired by any   such amendment if the Board, in its sole discretion, determines that the amendment, taken as a whole,   does not materially impair the Participant’s rights, and (2) subject to the limitations of applicable law, if   any, the Board may amend the terms of any one or more Stock Awards without the affected Participant’s   consent (A) to maintain the qualified status of the Stock Award as an Incentive Stock Option under  Section 422 of the Code; (B) to change the terms of an Incentive Stock Option, if such change results in  impairment of the Stock Award solely because it impairs the qualified status of the Stock Award as an  Incentive Stock Option under Section 422 of the Code; (C) to clarify the manner of exemption from, or to  bring the Stock Award into compliance with, Section 409A of the Code; or (D) to comply with other  applicable laws.               (ix)  Generally, to exercise such powers and to perform such acts as the Board deems  necessary or expedient to promote the best interests of the Company and that are not in conflict with the  provisions of the Plan or Stock Awards.               (x)   To adopt such procedures and sub-plans as are necessary or appropriate to permit  participation in the Plan by Employees, Directors or Consultants who are foreign nationals or employed                                           2.    

 

 outside the United States (provided that Board approval will not be necessary for immaterial   modifications to the Plan or any Stock Award Agreement that are required for compliance with the laws   of the relevant foreign jurisdiction).                (xi)   To effect, with the consent of any adversely affected Participant, (A) the   reduction of the exercise, purchase or strike price of any outstanding Stock Award; (B) the cancellation of   any outstanding Stock Award and the grant in substitution therefor of a new (1) Option or SAR, (2)   Restricted Stock Award, (3) Restricted Stock Unit Award, (4) Other Stock Award, (5) cash and/or (6)   other valuable consideration determined by the Board, in its sole discretion, with any such substituted   award (x) covering the same or a different number of shares of Common Stock as the cancelled Stock   Award and (y) granted under the Plan or another equity or compensatory plan of the Company; or (C) any   other action that is treated as a repricing under generally accepted accounting principles.          (c)   Delegation to Committee.  The Board may delegate some or all of the administration of   the Plan to a Committee or Committees.  If administration of the Plan is delegated to a Committee, the   Committee will have, in connection with the administration of the Plan, the powers theretofore possessed   by the Board that have been delegated to the Committee, including the power to delegate to a   subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise   (and references in this Plan to the Board will thereafter be to the Committee or subcommittee, as   applicable).  Any delegation of administrative powers will be reflected in resolutions, not inconsistent   with the provisions of the Plan, adopted from time to time by the Board or Committee (as applicable).    The Board may retain the authority to concurrently administer the Plan with the Committee and may, at   any time, revest in the Board some or all of the powers previously delegated.         (d)    Delegation to an Officer.  The Board may delegate to one or more Officers the  authority to do one or both of the following: (i) designate Employees who are not Officers to be recipients  of Options and SARs (and, to the extent permitted by applicable law, other Stock Awards) and, to the  extent permitted by applicable law, the terms of such Stock Awards, and (ii) determine the number of  shares of Common Stock to be subject to such Stock Awards granted to such Employees; provided,  however, that the Board resolutions regarding such delegation will specify the total number of shares of  Common Stock that may be subject to the Stock Awards granted by such Officer and that such Officer  may not grant a Stock Award to himself or herself.  Any such Stock Awards will be granted on the form  of Stock Award Agreement most recently approved for use by the Committee or the Board, unless  otherwise provided in the resolutions approving the delegation authority.  The Board may not delegate  authority to an Officer who is acting solely in the capacity of an Officer (and not also as a Director) to  determine the Fair Market Value pursuant to Section 13(t) below.          (e)   Effect of Board’s Decision. All determinations, interpretations and constructions made  by the Board in good faith will not be subject to review by any person and will be final, binding and  conclusive on all persons.   3.    Shares Subject to the Plan.         (a)   Share Reserve.                 (i)   Subject to Section 9(a) relating to Capitalization Adjustments, the aggregate  number of shares of Common Stock that may be issued pursuant to Stock Awards from and after the  Effective Date will not exceed 3,953,541 shares (the “Share Reserve”).                                               3.    

 

             (ii) For clarity, the Share Reserve in this Section 3(a) is a limitation on the number of  shares of Common Stock that may be issued pursuant to the Plan.  Accordingly, this Section 3(a) does not   limit the granting of Stock Awards except as provided in Section 7(a).            (b)  Reversion of Shares to the Share Reserve.  If a Stock Award or any portion thereof  (i) expires or otherwise terminates without all of the shares covered by such Stock Award having been   issued or (ii) is settled in cash (i.e., the Participant receives cash rather than stock), such expiration,   termination or settlement will not reduce (or otherwise offset) the number of shares of Common Stock   that may be available for issuance under the Plan.  If any shares of Common Stock issued pursuant to a   Stock Award are forfeited back to or repurchased by the Company because of the failure to meet a   contingency or condition required to vest such shares in the Participant, then the shares that are forfeited   or repurchased will revert to and again become available for issuance under the Plan.  Any shares   reacquired by the Company in satisfaction of tax withholding obligations on a Stock Award or as   consideration for the exercise or purchase price of a Stock Award will again become available for   issuance under the Plan.           (c)   Incentive Stock Option Limit.  Subject to the Share Reserve and Section 9(a) relating to  Capitalization Adjustments, the aggregate maximum number of shares of Common Stock that may be  issued pursuant to the exercise of Incentive Stock Options will be a number of shares of Common Stock  equal to three multiplied by the Share Reserve.          (d)   Source of Shares.  The stock issuable under the Plan will be shares of authorized but  unissued or reacquired Common Stock, including shares repurchased by the Company on the open market  or otherwise.   4.    Eligibility.         (a)   Eligibility for Specific Stock Awards.  Incentive Stock Options may be granted only to  employees of the Company or a “parent corporation” or “subsidiary corporation” thereof (as such terms  are defined in Sections 424(e) and 424(f) of the Code).  Stock Awards other than Incentive Stock Options  may be granted to Employees, Directors and Consultants; provided, however, that Stock Awards may not  be granted to Employees, Directors and Consultants who are providing Continuous Service only to any  “parent” of the Company, as such term is defined in Rule 405, unless (i) the stock underlying such Stock  Awards is treated as “service recipient stock” under Section 409A of the Code (for example, because the  Stock Awards are granted pursuant to a corporate transaction such as a spin off transaction), (ii) the  Company, in consultation with its legal counsel, has determined that such Stock Awards are otherwise  exempt from Section 409A of the Code, or (iii) the Company, in consultation with its legal counsel, has  determined that such Stock Awards comply with the distribution requirements of Section 409A of the  Code.           (b)   Ten Percent Stockholders.  A Ten Percent Stockholder will not be granted an Incentive  Stock Option unless the exercise price of such Option is at least 110% of the Fair Market Value on the  date of grant and the Option is not exercisable after the expiration of five years from the date of grant.         (c)   Consultants.   A Consultant will not be eligible for the grant of a Stock Award if, at the  time of grant, either the offer or sale of the Company’s securities to such Consultant is not exempt under  Rule 701 because of the nature of the services that the Consultant is providing to the Company, because  the Consultant is not a natural person, or because of any other provision of Rule 701, unless the Company  determines that such grant need not comply with the requirements of Rule 701 and will satisfy another                                           4.    

 

 exemption under the Securities Act as well as comply with the securities laws of all other relevant   jurisdictions.      5.    Provisions Relating to Options and Stock Appreciation Rights.          Each Option or SAR will be in such form and will contain such terms and conditions as the Board   deems appropriate.  All Options will be separately designated Incentive Stock Options or Nonstatutory   Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will   be issued for shares of Common Stock purchased on exercise of each type of Option.  If an Option is not   specifically designated as an Incentive Stock Option, or if an Option is designated as an Incentive Stock   Option but some portion or all of the Option fails to qualify as an Incentive Stock Option under the   applicable rules, then the Option (or portion thereof) will be a Nonstatutory Stock Option. The provisions   of separate Options or SARs need not be identical; provided, however, that each Stock Award Agreement   will conform to (through incorporation of provisions hereof by reference in the applicable Stock Award   Agreement or otherwise) the substance of each of the following provisions:          (a)   Term.  Subject to the provisions of Section 4(b) regarding Ten Percent Stockholders, no   Option or SAR will be exercisable after the expiration of 10 years from the date of its grant or such   shorter period specified in the Stock Award Agreement.          (b)  Exercise Price.  Subject to the provisions of Section 4(b) regarding Ten Percent  Stockholders, the exercise or strike price of each Option or SAR will be not less than 100% of the Fair  Market Value of the Common Stock subject to the Option or SAR on the date the Stock Award is granted.   Notwithstanding the foregoing, an Option or SAR may be granted with an exercise or strike price lower  than 100% of the Fair Market Value of the Common Stock subject to the Stock Award if such Stock  Award is granted pursuant to an assumption of or substitution for another option or stock appreciation  right pursuant to a Corporate Transaction and in a manner consistent with the provisions of Section 409A  of the Code and, if applicable, Section 424(a) of the Code.  Each SAR will be denominated in shares of  Common Stock equivalents.         (c)   Purchase Price for Options.  The purchase price of Common Stock acquired pursuant to   the exercise of an Option may be paid, to the extent permitted by applicable law and as determined by the   Board in its sole discretion, by any combination of the methods of payment set forth below.  The Board   will have the authority to grant Options that do not permit all of the following methods of payment (or   otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the   Company to use a particular method of payment.  The permitted methods of payment are as follows:                (i)   by cash, check, bank draft or money order payable to the Company;                (ii)  pursuant to a program developed under Regulation T as promulgated by the   Federal Reserve Board that, prior to the issuance of the stock subject to the Option, results in either the   receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate   exercise price to the Company from the sales proceeds;                 (iii) by delivery to the Company (either by actual delivery or attestation) of shares of   Common Stock;                 (iv)  if an Option is a Nonstatutory Stock Option, by a “net exercise” arrangement   pursuant to which the Company will reduce the number of shares of Common Stock issuable upon                                           5.    

 

 exercise by the largest whole number of shares with a Fair Market Value that does not exceed the   aggregate exercise price; provided, however, that the Company will accept a cash or other payment from  the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such  reduction in the number of whole shares to be issued.  Shares of Common Stock will no longer be subject  to an Option and will not be exercisable thereafter to the extent that (A) shares issuable upon exercise are  used to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as  a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations;               (v)   according to a deferred payment or similar arrangement with the Optionholder;  provided, however, that interest will compound at least annually and will be charged at the minimum rate  of interest necessary to avoid (A) the imputation of interest income to the Company and compensation  income to the Optionholder under any applicable provisions of the Code, and (B) the classification of the  Option as a liability for financial accounting purposes; or               (vi)  in any other form of legal consideration that may be acceptable to the Board and  specified in the applicable Stock Award Agreement.           (d)   Exercise and Payment of a SAR.  To exercise any outstanding SAR, the Participant  must provide written notice of exercise to the Company in compliance with the provisions of the Stock  Appreciation Right Agreement evidencing such SAR.  The appreciation distribution payable on the  exercise of a SAR will be not greater than an amount equal to the excess of (A) the aggregate Fair Market  Value (on the date of the exercise of the SAR) of a number of shares of Common Stock equal to the  number of Common Stock equivalents in which the Participant is vested under such SAR, and with  respect to which the Participant is exercising the SAR on such date, over (B) the aggregate strike price of  the number of Common Stock equivalents with respect to which the Participant is exercising the SAR on  such date.  The appreciation distribution may be paid in Common Stock, in cash, in any combination of  the two or in any other form of consideration, as determined by the Board and contained in the Stock  Award Agreement evidencing such SAR.         (e)   Transferability of Options and SARs.  The Board may, in its sole discretion, impose  such limitations on the transferability of Options and SARs as the Board will determine.  In the absence  of such a determination by the Board to the contrary, the following restrictions on the transferability of  Options and SARs will apply:               (i)   Restrictions on Transfer.  An Option or SAR will not be transferable except by  will or by the laws of descent and distribution (or pursuant to subsections (ii) and (iii) below), and will be  exercisable during the lifetime of the Participant only by the Participant.  The Board may permit transfer  of the Option or SAR in a manner that is not prohibited by applicable tax and securities laws. Except as  explicitly provided in the Plan, neither an Option nor a SAR may be transferred for consideration.                 (ii)  Domestic Relations Orders.  Subject to the approval of the Board or a duly  authorized Officer, an Option or SAR may be transferred pursuant to the terms of a domestic relations  order, official marital settlement agreement or other divorce or separation instrument as permitted by  Treasury Regulation 1.421-1(b)(2).  If an Option is an Incentive Stock Option, such Option may be  deemed to be a Nonstatutory Stock Option as a result of such transfer.                 (iii) Beneficiary Designation.  Subject to the approval of the Board or a duly  authorized Officer, a Participant may, by delivering written notice to the Company, in a form approved by  the Company (or the designated broker), designate a third party who, upon the death of the Participant,                                           6.    

 

 will thereafter be entitled to exercise the Option or SAR and receive the Common Stock or other   consideration resulting from such exercise.  In the absence of such a designation, upon the death of the   Participant, the executor or administrator of the Participant’s estate will be entitled to exercise the Option   or SAR and receive the Common Stock or other consideration resulting from such exercise.  However, the   Company may prohibit designation of a beneficiary at any time, including due to any conclusion by the   Company that such designation would be inconsistent with the provisions of applicable laws.          (f)   Vesting Generally.  The total number of shares of Common Stock subject to an Option   or SAR may vest and therefore become exercisable in periodic installments that may or may not be equal.    The Option or SAR may be subject to such other terms and conditions on the time or times when it may   or may not be exercised (which may be based on the satisfaction of performance goals or other criteria) as   the Board may deem appropriate.  The vesting provisions of individual Options or SARs may vary.  The   provisions of this Section 5(f) are subject to any Option or SAR provisions governing the minimum  number of shares of Common Stock as to which an Option or SAR may be exercised.         (g)   Termination of Continuous Service.  Except as otherwise provided in the applicable  Stock Award Agreement or other agreement between the Participant and the Company, if a Participant’s  Continuous Service terminates (other than for Cause and other than upon the Participant’s death or  Disability), the Participant may exercise his or her Option or SAR (to the extent that the Participant was  entitled to exercise such Stock Award as of the date of termination of Continuous Service) within the  period of time ending on the earlier of (i) the date three months following the termination of the  Participant’s Continuous Service (or such longer or shorter period specified in the applicable Stock  Award Agreement, which period will not be less than 30 days if necessary to comply with applicable laws  unless such termination is for Cause) and (ii) the expiration of the term of the Option or SAR as set forth  in the Stock Award Agreement.  If, after termination of Continuous Service, the Participant does not  exercise his or her Option or SAR (as applicable) within the applicable time frame, the Option or SAR  will terminate.         (h)   Extension of Termination Date.  If the exercise of an Option or SAR following the  termination of the Participant’s Continuous Service (other than for Cause and other than upon the  Participant’s death or Disability) would be prohibited at any time solely because the issuance of shares of  Common Stock would violate the registration requirements under the Securities Act, then the Option or  SAR will terminate on the earlier of (i) the expiration of a total period of time (that need not be  consecutive) equal to the applicable post-termination exercise period after the termination of the  Participant’s Continuous Service during which the exercise of the Option or SAR would not be in  violation of such registration requirements, and (ii) the expiration of the term of the Option or SAR as set  forth in the applicable Stock Award Agreement.  In addition, unless otherwise provided in a Participant’s  Stock Award Agreement, if the sale of any Common Stock received upon exercise of an Option or SAR  following the termination of the Participant’s Continuous Service (other than for Cause) would violate the  Company’s insider trading policy, then the Option or SAR will terminate on the earlier of (i) the  expiration of the period of time (that need not be consecutive) equal to the applicable post-termination  exercise period after the termination of the Participant’s Continuous Service during which the sale of the  Common Stock received upon exercise of the Option or SAR would not be in violation of the Company’s  insider trading policy, and (ii) the expiration of the term of the Option or SAR as set forth in the  applicable Stock Award Agreement.         (i)   Disability of Participant.  Except as otherwise provided in the applicable Stock Award  Agreement or other agreement between the Participant and the Company, if a Participant’s Continuous  Service terminates as a result of the Participant’s Disability, the Participant may exercise his or her                                           7.    

 

 Option or SAR (to the extent that the Participant was entitled to exercise such Option or SAR as of the   date of termination of Continuous Service), but only within such period of time ending on the earlier of   (i) the date 12 months following such termination of Continuous Service (or such longer or shorter period   specified in the Stock Award Agreement, which period will not be less than six months if necessary to   comply with applicable laws unless such termination is for Cause), and (ii) the expiration of the term of  the Option or SAR as set forth in the Stock Award Agreement.  If, after termination of Continuous  Service, the Participant does not exercise his or her Option or SAR within the applicable time frame, the  Option or SAR (as applicable) will terminate.          (j)   Death of Participant.  Except as otherwise provided in the applicable Stock Award   Agreement or other agreement between the Participant and the Company, if (i) a Participant’s Continuous   Service terminates as a result of the Participant’s death, or (ii) the Participant dies within the period (if   any) specified in the Stock Award Agreement for exercisability after the termination of the Participant’s   Continuous Service (for a reason other than death), then the Option or SAR may be exercised (to the   extent the Participant was entitled to exercise such Option or SAR as of the date of death) by the   Participant’s estate, by a person who acquired the right to exercise the Option or SAR by bequest or   inheritance or by a person designated to exercise the Option or SAR upon the Participant’s death, but only   within the period ending on the earlier of (i) the date 18 months following the date of death (or such   longer or shorter period specified in the Stock Award Agreement, which period will not be less than   six months if necessary to comply with applicable laws unless such termination is for Cause), and (ii) the   expiration of the term of such Option or SAR as set forth in the Stock Award Agreement.  If, after the   Participant’s death, the Option or SAR is not exercised within the applicable time frame, the Option or   SAR (as applicable) will terminate.            (k)  Termination for Cause.  Except as explicitly provided otherwise in a Participant’s Stock   Award Agreement or other individual written agreement between the Company or any Affiliate and the   Participant, if a Participant’s Continuous Service is terminated for Cause, the Option or SAR will   terminate immediately upon such Participant’s termination of Continuous Service, and the Participant will   be prohibited from exercising his or her Option or SAR (whether vested or unvested) from and after the   date of such termination of Continuous Service.          (l)   Non-Exempt Employees.  If an Option or SAR is granted to an Employee who is a non-  exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, the Option or SAR   will not be first exercisable for any shares of Common Stock until at least six months following the date   of grant of the Option or SAR (although the Stock Award may vest prior to such date).  Consistent with   the provisions of the Worker Economic Opportunity Act, (i) if such non-exempt Employee dies or suffers   a Disability, (ii) upon a Corporate Transaction in which such Option or SAR is not assumed, continued,   or substituted, (iii) upon a Change in Control, or (iv) upon the Participant’s retirement (as such term may   be defined in the Participant’s Stock Award Agreement, in another agreement between the Participant and   the Company, or, if no such definition, in accordance with the Company's then current employment   policies and guidelines), the vested portion of any Options and SARs may be exercised earlier than six   months following the date of grant.  The foregoing provision is intended to operate so that any income   derived by a non-exempt employee in connection with the exercise or vesting of an Option or SAR will   be exempt from his or her regular rate of pay. To the extent permitted and/or required for compliance with   the Worker Economic Opportunity Act to ensure that any income derived by a non-exempt employee in   connection with the exercise, vesting or issuance of any shares under any other Stock Award will be   exempt from the employee’s regular rate of pay, the provisions of this Section 5(l) will apply to all Stock   Awards and are hereby incorporated by reference into such Stock Award Agreements.                                            8.    

 

       (m)   Early Exercise of Options.  An Option may, but need not, include a provision whereby   the Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to   exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the   full vesting of the Option.  Subject to the “Repurchase Limitation” in Section 8(l), any unvested shares of   Common Stock so purchased may be subject to a repurchase right in favor of the Company or to any   other restriction the Board determines to be appropriate.  Provided that the “Repurchase Limitation” in   Section 8(l) is not violated, the Company will not be required to exercise its repurchase right until at least   six months (or such longer or shorter period of time required to avoid classification of the Option as a   liability for financial accounting purposes) have elapsed following exercise of the Option unless the   Board otherwise specifically provides in the Option Agreement.          (n)   Right of Repurchase.  Subject to the “Repurchase Limitation” in Section 8(l), the   Option or SAR may include a provision whereby the Company may elect to repurchase all or any part of   the vested shares of Common Stock acquired by the Participant pursuant to the exercise of the Option or   SAR.            (o)   Right of First Refusal.  The Option or SAR may include a provision whereby the   Company may elect to exercise a right of first refusal following receipt of notice from the Participant of   the intent to transfer all or any part of the shares of Common Stock received upon the exercise of the   Option or SAR.  Such right of first refusal will be subject to the “Repurchase Limitation” in Section 8(l).    Except as expressly provided in this Section 5(o) or in the Stock Award Agreement, such right of first   refusal will otherwise comply with any applicable provisions of the bylaws of the Company.      6.    Provisions of Stock Awards Other than Options and SARs.          (a)   Restricted Stock Awards.  Each Restricted Stock Award Agreement will be in such   form and will contain such terms and conditions as the Board will deem appropriate.  To the extent   consistent with the Company’s bylaws, at the Board’s election, shares of Common Stock underlying a   Restricted Stock Award may be (i) held in book entry form subject to the Company’s instructions until   any restrictions relating to the Restricted Stock Award lapse; or (ii) evidenced by a certificate, which   certificate will be held in such form and manner as determined by the Board.  The terms and conditions of   Restricted Stock Award Agreements may change from time to time, and the terms and conditions of   separate Restricted Stock Award Agreements need not be identical.  Each Restricted Stock Award   Agreement will conform to (through incorporation of the provisions hereof by reference in the agreement   or otherwise) the substance of each of the following provisions:                (i)   Consideration. A Restricted Stock Award may be awarded in consideration for   (A) cash, check, bank draft or money order payable to the Company, (B) past services to the Company or   an Affiliate, or (C) any other form of legal consideration (including future services) that may be   acceptable to the Board, in its sole discretion, and permissible under applicable law.                  (ii)  Vesting.  Subject to the “Repurchase Limitation” in Section 8(l), shares of   Common Stock awarded under the Restricted Stock Award Agreement may be subject to forfeiture to the   Company in accordance with a vesting schedule to be determined by the Board.               (iii) Termination of Participant’s Continuous Service.  If a Participant’s  Continuous Service terminates, the Company may receive through a forfeiture condition or a repurchase  right, any or all of the shares of Common Stock held by the Participant that have not vested as of the date  of termination of Continuous Service under the terms of the Restricted Stock Award Agreement.                                           9.    

 

             (iv)  Transferability.  Rights to acquire shares of Common Stock under the Restricted   Stock Award Agreement will be transferable by the Participant only upon such terms and conditions as   are set forth in the Restricted Stock Award Agreement, as the Board will determine in its sole discretion,   so long as Common Stock awarded under the Restricted Stock Award Agreement remains subject to the   terms of the Restricted Stock Award Agreement.                (v)   Dividends.  A Restricted Stock Award Agreement may provide that any   dividends paid on Restricted Stock will be subject to the same vesting and forfeiture restrictions as apply   to the shares subject to the Restricted Stock Award to which they relate.          (b)   Restricted Stock Unit Awards.  Each Restricted Stock Unit Award Agreement will be   in such form and will contain such terms and conditions as the will Board deem appropriate.  The terms   and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms   and conditions of separate Restricted Stock Unit Award Agreements need not be identical.  Each   Restricted Stock Unit Award Agreement will conform to (through incorporation of the provisions hereof   by reference in the Agreement or otherwise) the substance of each of the following provisions:                (i)   Consideration.  At the time of grant of a Restricted Stock Unit Award, the Board   will determine the consideration, if any, to be paid by the Participant upon delivery of each share of   Common Stock subject to the Restricted Stock Unit Award.  The consideration to be paid (if any) by the   Participant for each share of Common Stock subject to a Restricted Stock Unit Award may be paid in any   form of legal consideration that may be acceptable to the Board, in its sole discretion, and permissible   under applicable law.                (ii) Vesting.  At the time of the grant of a Restricted Stock Unit Award, the Board  may impose such restrictions on or conditions to the vesting of the Restricted Stock Unit Award as it, in  its sole discretion, deems appropriate.               (iii) Payment.  A Restricted Stock Unit Award may be settled by the delivery of  shares of Common Stock, their cash equivalent, any combination thereof or in any other form of  consideration, as determined by the Board and contained in the Restricted Stock Unit Award Agreement.               (iv)  Additional Restrictions.  At the time of the grant of a Restricted Stock Unit  Award, the Board, as it deems appropriate, may impose such restrictions or conditions that delay the  delivery of the shares of Common Stock (or their cash equivalent) subject to a Restricted Stock Unit  Award to a time after the vesting of such Restricted Stock Unit Award.                 (v)   Dividend Equivalents.  Dividend equivalents may be credited in respect of  shares of Common Stock covered by a Restricted Stock Unit Award, as determined by the Board and  contained in the Restricted Stock Unit Award Agreement.  At the sole discretion of the Board, such  dividend equivalents may be converted into additional shares of Common Stock covered by the Restricted  Stock Unit Award in such manner as determined by the Board.  Any additional shares covered by the  Restricted Stock Unit Award credited by reason of such dividend equivalents will be subject to all of the  same terms and conditions of the underlying Restricted Stock Unit Award Agreement to which they  relate.               (vi)  Termination of Participant’s Continuous Service.  Except as otherwise  provided in the applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock  Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous Service.                                           10.    

 

             (vii) Compliance with Section 409A of the Code.   Notwithstanding anything to the  contrary set forth herein, any Restricted Stock Unit Award granted under the Plan that is not exempt from  the requirements of Section 409A of the Code will contain such provisions so that such Restricted Stock  Unit Award will comply with the requirements of Section 409A of the Code.  Such restrictions, if any,  will be determined by the Board and contained in the Restricted Stock Unit Award Agreement evidencing  such Restricted Stock Unit Award.  For example, such restrictions may include, without limitation, a  requirement that any Common Stock that is to be issued in a year following the year in which the  Restricted Stock Unit Award vests must be issued in accordance with a fixed pre-determined schedule.         (c)   Other Stock Awards.  Other forms of Stock Awards valued in whole or in part by  reference to, or otherwise based on, Common Stock, including the appreciation in value thereof (e.g.,  options or stock rights with an exercise price or strike price less than 100% of the Fair Market Value of  the Common Stock at the time of grant) may be granted either alone or in addition to Stock Awards  provided for under Section 5 and the preceding provisions of this Section 6.  Subject to the provisions of  the Plan, the Board will have sole and complete authority to determine the persons to whom and the time  or times at which such Other Stock Awards will be granted, the number of shares of Common Stock (or  the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and  conditions of such Other Stock Awards.   7.    Covenants of the Company.         (a)   Availability of Shares.  The Company will keep available at all times the number of  shares of Common Stock reasonably required to satisfy then-outstanding Stock Awards.         (b)   Securities Law Compliance.  The Company will seek to obtain from each regulatory  commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock  Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided,  however, that this undertaking will not require the Company to register under the Securities Act the Plan,  any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award.  If, after  reasonable efforts and at a reasonable cost, the Company is unable to obtain from any such regulatory  commission or agency the authority that counsel for the Company deems necessary for the lawful  issuance and sale of Common Stock under the Plan, the Company will be relieved from any liability for  failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such  authority is obtained. A Participant will not be eligible for the grant of a Stock Award or the subsequent  issuance of cash or Common Stock pursuant to the Stock Award if such grant or issuance would be in  violation of any applicable securities law.          (c)   No Obligation to Notify or Minimize Taxes.  The Company will have no duty or  obligation to any Participant to advise such holder as to the time or manner of exercising such Stock  Award.  Furthermore, the Company will have no duty or obligation to warn or otherwise advise such  holder of a pending termination or expiration of a Stock Award or a possible period in which the Stock  Award may not be exercised.  The Company has no duty or obligation to minimize the tax consequences  of a Stock Award to the holder of such Stock Award.   8.    Miscellaneous.         (a)   Use of Proceeds from Sales of Common Stock.  Proceeds from the sale of shares of  Common Stock pursuant to Stock Awards will constitute general funds of the Company.                                          11.    

 

       (b)  Corporate Action Constituting Grant of Stock Awards.  Corporate action constituting  a grant by the Company of a Stock Award to any Participant will be deemed completed as of the date of  such corporate action, unless otherwise determined by the Board, regardless of when the instrument,  certificate, or letter evidencing the Stock Award is communicated to, or actually received or accepted by,  the Participant.  In the event that the corporate records (e.g., Board consents, resolutions or minutes)  documenting the corporate action constituting the grant contain terms (e.g., exercise price, vesting  schedule or number of shares) that are inconsistent with those in the Stock Award Agreement or related  grant documents as a result of a clerical error in the papering of the Stock Award Agreement or related  grant documents, the corporate records will control and the Participant will have no legally binding right  to the incorrect term in the Stock Award Agreement or related grant documents.         (c)   Stockholder Rights.  No Participant will be deemed to be the holder of, or to have any of  the rights of a holder with respect to, any shares of Common Stock subject to a Stock Award unless and  until (i) such Participant has satisfied all requirements for exercise of, or the issuance of shares of  Common Stock under, the Stock Award pursuant to its terms, and (ii) the issuance of the Common Stock  subject to the Stock Award has been entered into the books and records of the Company.         (d)   No Employment or Other Service Rights.  Nothing in the Plan, any Stock Award  Agreement or any other instrument executed thereunder or in connection with any Stock Award granted  pursuant thereto will confer upon any Participant any right to continue to serve the Company or an  Affiliate in the capacity in effect at the time the Stock Award was granted or will affect the right of the  Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with  or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement  with the Company or an Affiliate, or (iii) the service of a Director pursuant to the bylaws of the Company  or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or  the Affiliate is incorporated, as the case may be.         (e)   Change in Time Commitment.  In the event a Participant’s regular level of time  commitment in the performance of his or her services for the Company and any Affiliates is reduced (for  example, and without limitation, if the Participant is an Employee of the Company and the Employee has  a change in status from a full-time Employee to a part-time Employee or takes an extended leave of  absence) after the date of grant of any Stock Award to the Participant, the Board has the right in its sole  discretion to (x) make a corresponding reduction in the number of shares subject to any portion of such  Stock Award that is scheduled to vest or become payable after the date of such change in time  commitment, and (y) in lieu of or in combination with such a reduction, extend the vesting or payment  schedule applicable to such Stock Award. In the event of any such reduction, the Participant will have no  right with respect to any portion of the Stock Award that is so reduced or extended.         (f)   Incentive Stock Option Limitations.  To the extent that the aggregate Fair Market  Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options  are exercisable for the first time by any Optionholder during any calendar year (under all plans of the  Company and any Affiliates) exceeds $100,000 (or such other limit established in the Code) or otherwise  does not comply with the rules governing Incentive Stock Options, the Options or portions thereof that  exceed such limit (according to the order in which they were granted) or otherwise do not comply with  such rules will be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of the  applicable Option Agreement(s).         (g)   Investment Assurances.  The Company may require a Participant, as a condition of  exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory                                          12.    

 

 to the Company as to the Participant’s knowledge and experience in financial and business matters and/or   to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and   experienced in financial and business matters and that the Participant is capable of evaluating, alone or   together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to  give written assurances satisfactory to the Company stating that the Participant is acquiring Common  Stock subject to the Stock Award for the Participant’s own account and not with any present intention of  selling or otherwise distributing the Common Stock.  The foregoing requirements, and any assurances  given pursuant to such requirements, will be inoperative if (A) the issuance of the shares upon the  exercise or acquisition of Common Stock under the Stock Award has been registered under a then  currently effective registration statement under the Securities Act, or (B) as to any particular requirement,  a determination is made by counsel for the Company that such requirement need not be met in the  circumstances under the then applicable securities laws.  The Company may, upon advice of counsel to  the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary  or appropriate in order to comply with applicable securities laws, including, but not limited to, legends  restricting the transfer of the Common Stock.          (h)   Withholding Obligations.  Unless prohibited by the terms of a Stock Award Agreement,  the Company may, in its sole discretion, satisfy any federal, state or local tax withholding obligation  relating to a Stock Award by any of the following means or by a combination of such means: (i) causing  the Participant to tender a cash payment; (ii) withholding shares of Common Stock from the shares of  Common Stock issued or otherwise issuable to the Participant in connection with the Stock Award;  provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum  amount of tax required to be withheld by law (or such lesser amount as may be necessary to avoid  classification of the Stock Award as a liability for financial accounting purposes); (iii) withholding cash  from a Stock Award settled in cash; (iv) withholding payment from any amounts otherwise payable to the  Participant; or (v) by such other method as may be set forth in the Stock Award Agreement.           (i)   Electronic Delivery.  Any reference herein to a “written” agreement or document will  include any agreement or document delivered electronically or posted on the Company’s intranet (or other  shared electronic medium controlled by the Company to which the Participant has access).         (j)   Deferrals.  To the extent permitted by applicable law, the Board, in its sole discretion,  may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or  settlement of all or a portion of any Stock Award may be deferred and may establish programs and  procedures for deferral elections to be made by Participants.  Deferrals by Participants will be made in  accordance with Section 409A of the Code.  Consistent with Section 409A of the Code, the Board may  provide for distributions while a Participant is still an employee or otherwise providing services to the  Company.  The Board is authorized to make deferrals of Stock Awards and determine when, and in what  annual percentages, Participants may receive payments, including lump sum payments, following the  Participant’s termination of Continuous Service, and implement such other terms and conditions  consistent with the provisions of the Plan and in accordance with applicable law.         (k)   Compliance with Section 409A of the Code.  To the extent that the Board determines  that any Stock Award granted hereunder is subject to Section 409A of the Code, the Stock Award  Agreement evidencing such Stock Award will incorporate the terms and conditions necessary to avoid the  consequences specified in Section 409A(a)(1) of the Code.  To the extent applicable, the Plan and Stock  Award Agreements will be interpreted in accordance with Section 409A of the Code. Notwithstanding  anything to the contrary in the Plan (and unless the Stock Award Agreement specifically provides  otherwise), if the shares of Common Stock are publicly traded, and if a Participant holding a Stock Award                                          13.    

 

 that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for   purposes of Section 409A of the Code, no distribution or payment of any amount that is due because of a   “separation from service” (as defined in Section 409A of the Code without regard to alternative   definitions thereunder) will be issued or paid before the date that is six months following the date of such   Participant’s “separation from service” (as defined in Section 409A of the Code without regard to   alternative definitions thereunder) or, if earlier, the date of the Participant’s death, unless such distribution   or payment can be made in a manner that complies with Section 409A of the Code, and any amounts so   deferred will be paid in a lump sum on the day after such six month period elapses, with the balance paid   thereafter on the original schedule.          (l)   Repurchase Limitation.  The terms of any repurchase right will be specified in the   Stock Award Agreement.  The repurchase price for vested shares of Common Stock will be the Fair   Market Value of the shares of Common Stock on the date of repurchase.  The repurchase price for   unvested shares of Common Stock will be the lower of (i) the Fair Market Value of the shares of   Common Stock on the date of repurchase or (ii) their original purchase price.  However, the Company   will not exercise its repurchase right until at least six months (or such longer or shorter period of time   necessary to avoid classification of the Stock Award as a liability for financial accounting purposes) have   elapsed following delivery of shares of Common Stock subject to the Stock Award, unless otherwise   specifically provided by the Board.      9.    Adjustments upon Changes in Common Stock; Other Corporate Events.          (a)   Capitalization Adjustments.  In the event of a Capitalization Adjustment, the Board will   appropriately and  proportionately adjust: (i) the class(es) and maximum number of securities subject to   the Plan pursuant to Section 3(a), (ii) the class(es) and maximum number of securities that may be issued   pursuant to the exercise of Incentive Stock Options pursuant to Section 3(c), and (iii) the class(es) and   number of securities and price per share of stock subject to outstanding Stock Awards.  The Board will   make such adjustments, and its determination will be final, binding and conclusive.            (b)  Dissolution or Liquidation.  Except as otherwise provided in the Stock Award  Agreement, in the event of a dissolution or liquidation of the Company, all outstanding Stock Awards  (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to a  forfeiture condition or the Company’s right of repurchase) will terminate immediately prior to the  completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s  repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company  notwithstanding the fact that the holder of such Stock Award is providing Continuous Service, provided,  however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully  vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such Stock Awards  have not previously expired or terminated) before the dissolution or liquidation is completed but  contingent on its completion.          (c)   Corporate Transaction.   The following provisions will apply to Stock Awards in the  event of a Corporate Transaction unless otherwise provided in the instrument evidencing the Stock Award  or any other written agreement between the Company or any Affiliate and the Participant or unless  otherwise expressly provided by the Board at the time of grant of a Stock Award.  In the event of a  Corporate Transaction, then, notwithstanding any other provision of the Plan, the Board may take one or  more of the following actions with respect to Stock Awards, contingent upon the closing or completion of  the Corporate Transaction:                                          14.    

 

             (i)   arrange for the surviving corporation or acquiring corporation (or the surviving   or acquiring corporation’s parent company) to assume or continue the Stock Award or to substitute a   similar stock award for the Stock Award (including, but not limited to, an award to acquire the same   consideration paid to the stockholders of the Company pursuant to the Corporate Transaction);                (ii) arrange for the assignment of any reacquisition or repurchase rights held by the  Company in respect of Common Stock issued pursuant to the Stock Award to the surviving corporation or  acquiring corporation (or the surviving or acquiring corporation’s parent company);               (iii) accelerate the vesting, in whole or in part, of the Stock Award (and, if applicable,  the time at which the Stock Award may be exercised) to a date prior to the effective time of such  Corporate Transaction as the Board determines (or, if the Board does not determine such a date, to the  date that is five days prior to the effective date of the Corporate Transaction), with such Stock Award  terminating if not exercised (if applicable) at or prior to the effective time of the Corporate Transaction;  provided, however, that the Board may require Participants to complete and deliver to the Company a  notice of exercise before the effective date of a Corporate Transaction, which exercise is contingent upon  the effectiveness of such Corporate Transaction;               (iv)  arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights  held by the Company with respect to the Stock Award;                 (v)   cancel or arrange for the cancellation of the Stock Award, to the extent not vested  or not exercised prior to the effective time of the Corporate Transaction, in exchange for such cash  consideration (including no consideration) as the Board, in its sole discretion, may consider appropriate;  and               (vi)  make a payment, in such form as may be determined by the Board equal to the  excess, if any, of (A) the value of the property the Participant would have received upon the exercise of  the Stock Award immediately prior to the effective time of the Corporate Transaction, over (B) any  exercise price payable by such holder in connection with such exercise.  For clarity, this payment may be  zero ($0) if the value of the property is equal to or less than the exercise price.  Payments under this  provision may be delayed to the same extent that payment of consideration to the holders of the  Company’s Common Stock in connection with the Corporate Transaction is delayed as a result of  escrows, earn outs, holdbacks or any other contingencies.   The Board need not take the same action or actions with respect to all Stock Awards or portions thereof or  with respect to all Participants.  The Board may take different actions with respect to the vested and  unvested portions of a Stock Award.         (d)   Change in Control.  A Stock Award may be subject to additional acceleration of vesting  and exercisability upon or after a Change in Control as may be provided in the Stock Award Agreement  for such Stock Award or as may be provided in any other written agreement between the Company or any  Affiliate and the Participant, but in the absence of such provision, no such acceleration will occur.    10.   Plan Term; Earlier Termination or Suspension of the Plan.         (a)   Plan Term.  The Board may suspend or terminate the Plan at any time.  Unless  terminated sooner by the Board, the Plan will automatically terminate on the day before the 10th  anniversary of the earlier of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan is                                          15.    

 

 approved by the stockholders of the Company.  No Stock Awards may be granted under the Plan while   the Plan is suspended or after it is terminated.          (b)  No Impairment of Rights.  Suspension or termination of the Plan will not impair rights   and obligations under any Stock Award granted while the Plan is in effect except with the written consent   of the affected Participant or as otherwise permitted in the Plan.    11.   Effective Date of Plan.          This Plan will become effective on the Effective Date.      12.   Choice of Law.          The laws of the State of Delaware will govern all questions concerning the construction, validity   and interpretation of this Plan, without regard to that state’s conflict of laws rules.    13.   Definitions.   As used in the Plan, the following definitions will apply to the capitalized terms  indicated below:           (a)   “Affiliate” means, at the time of determination, any “parent” or “majority-owned  subsidiary” of the Company, as such terms are defined in Rule 405.  The Board will have the authority to  determine the time or times at which “parent” or “majority-owned subsidiary” status is determined within  the foregoing definition.           (b)   “Board” means the Board of Directors of the Company.         (c)   “Capitalization Adjustment” means any change that is made in, or other events that occur  with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Effective  Date without the receipt of consideration by the Company through merger, consolidation, reorganization,  recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring  cash dividend, stock split, reverse stock split, liquidating dividend, combination of shares, exchange of  shares, change in corporate structure, or any similar equity restructuring transaction, as that term is used  in Statement of Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or  any successor thereto).  Notwithstanding the foregoing, the conversion of any convertible securities of the  Company will not be treated as a Capitalization Adjustment.         (d)   “Cause” will have the meaning ascribed to such term in any written agreement between  the Participant and the Company defining such term and, in the absence of such agreement, such term  means, with respect to a Participant, the occurrence of any of the following events:  (i) such Participant’s  commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of  the United States or any state thereof; (ii) such Participant’s attempted commission of, or participation in,  a fraud or act of dishonesty against the Company, or any of its employees or directors; (iii) such  Participant’s intentional, material violation of any contract or agreement between the Participant and the  Company, the Company’s employment policies, or of any statutory or other duty owed to the Company;  (iv) such Participant’s unauthorized use or disclosure of the Company’s confidential information or trade  secrets; or (v) such Participant’s gross misconduct. The determination that a termination of the  Participant’s Continuous Service is either for Cause or without Cause will be made by the Company, in  its sole discretion.  Any determination by the Company that the Continuous Service of a Participant was  terminated with or without Cause for the purposes of outstanding Stock Awards held by such Participant                                          16.    

 

 will have no effect upon any determination of the rights or obligations of the Company or such Participant   for any other purpose.          (e)   “Change in Control” means the occurrence, in a single transaction or in a series of   related transactions, of any one or more of the following events:                (i)   any Exchange Act Person becomes the Owner, directly or indirectly, of securities   of the Company representing more than 50% of the combined voting power of the Company’s then   outstanding securities other than by virtue of a merger, consolidation or similar transaction.    Notwithstanding the foregoing, a Change in Control will not be deemed to occur (A) on account of the   acquisition of securities of the Company directly from the Company, (B) on account of the acquisition of   securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person that   acquires the Company’s securities in a transaction or series of related transactions the primary purpose of   which is to obtain financing for the Company through the issuance of equity securities or (C) solely   because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the   designated percentage threshold of the outstanding voting securities as a result of a repurchase or other   acquisition of voting securities by the Company reducing the number of shares outstanding, provided that   if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of   voting securities by the Company, and after such share acquisition, the Subject Person becomes the   Owner of any additional voting securities that, assuming the repurchase or other acquisition had not   occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person   over the designated percentage threshold, then a Change in Control will be deemed to occur;                (ii)  there is consummated a merger, consolidation or similar transaction involving  (directly or indirectly) the Company and, immediately after the consummation of such merger,  consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not  Own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the  combined outstanding voting power of the surviving Entity in such merger, consolidation or similar  transaction or (B) more than 50% of the combined outstanding voting power of the parent of the surviving  Entity in such merger, consolidation or similar transaction, in each case in substantially the same  proportions as their Ownership of the outstanding voting securities of the Company immediately prior to  such transaction; or               (iii) there is consummated a sale, lease, exclusive license or other disposition of all or  substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease,  license or other disposition of all or substantially all of the consolidated assets of the Company and its  Subsidiaries to an Entity, more than 50% of the combined voting power of the voting securities of which  are Owned by stockholders of the Company in substantially the same proportions as their Ownership of  the outstanding voting securities of the Company immediately prior to such sale, lease, license or other  disposition.   Notwithstanding the foregoing definition or any other provision of this Plan, (A) the term Change in  Control will not include a sale of assets, merger or other transaction effected exclusively for the purpose  of changing the domicile of the Company, (B) the definition of Change in Control (or any analogous  term) in an individual written agreement between the Company or any Affiliate and the Participant will  supersede the foregoing definition with respect to Stock Awards subject to such agreement; provided,  however, that if no definition of Change in Control or any analogous term is set forth in such an  individual written agreement, the definition set forth herein will apply, and (C) if at any time the  Company’s Certificate of Incorporation provides definitions of various analogous transactions that would                                          17.    

 

be deemed a liquidation event for the Company, then such definition will apply as if it were the definition  set forth herein except as is otherwise expressly provided in an individual written agreement between the  Company or any Affiliate and the Participant.         (f)   “Code” means the Internal Revenue Code of 1986, as amended, including any applicable  regulations and guidance thereunder.         (g)   “Committee” means a committee of one or more Directors to whom authority has been  delegated by the Board in accordance with Section 2(c).         (h)    “Common Stock” means the common stock of the Company.         (i)   “Company” means Inference Technologies Group Inc., a Delaware corporation.         (j)   “Consultant” means any person, including an advisor, who is (i) engaged by the  Company or an Affiliate to render consulting or advisory services and is compensated for such services,  or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services.   However, service solely as a Director, or payment of a fee for such service, will not cause a Director to be  considered a “Consultant” for purposes of the Plan.           (k)   “Continuous Service” means that the Participant’s service with the Company or an  Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated.  A change in  the capacity in which the Participant renders service to the Company or an Affiliate as an Employee,  Director or Consultant or a change in the Entity for which the Participant renders such service, provided  that there is no interruption or termination of the Participant’s service with the Company or an Affiliate,  will not terminate a Participant’s Continuous Service; provided, however, that if the Entity for which a  Participant is rendering services ceases to qualify as an Affiliate, as determined by the Board in its sole  discretion, such Participant’s Continuous Service will be considered to have terminated on the date such  Entity ceases to qualify as an Affiliate.  For example, a change in status from an Employee of the  Company to a Consultant of an Affiliate or to a Director will not constitute an interruption of Continuous  Service.  To the extent permitted by law, the Board or the chief executive officer of the Company, in that  party’s sole discretion, may determine whether Continuous Service will be considered interrupted in the  case of (i) any leave of absence approved by the Board or chief executive officer, including sick leave,  military leave or any other personal leave, or (ii) transfers between the Company, an Affiliate, or their  successors.  Notwithstanding the foregoing, a leave of absence will be treated as Continuous Service for  purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave of  absence policy, in the written terms of any leave of absence agreement or policy applicable to the  Participant, or as otherwise required by law.         (l)   “Corporate Transaction” means the consummation, in a single transaction or in a series  of related transactions, of any one or more of the following events:               (i)   a sale or other disposition of all or substantially all, as determined by the Board  in its sole discretion, of the consolidated assets of the Company and its Subsidiaries;               (ii)  a sale or other disposition of more than 50% of the outstanding securities of the  Company;               (iii) a merger, consolidation or similar transaction following which the Company is  not the surviving corporation; or                                         18.   

 

            (iv)  a merger, consolidation or similar transaction following which the Company is  the surviving corporation but the shares of Common Stock outstanding immediately preceding the  merger, consolidation or similar transaction are converted or exchanged by virtue of the merger,  consolidation or similar transaction into other property, whether in the form of securities, cash or  otherwise.         (m)   “Director” means a member of the Board.         (n)   “Disability” means, with respect to a Participant, the inability of such Participant to  engage in any substantial gainful activity by reason of any medically determinable physical or mental  impairment that can be expected to result in death or that has lasted or can be expected to last for a  continuous period of not less than twelve (12) months as provided in Sections 22(e)(3) and  409A(a)(2)(c)(i) of the Code, and will be determined by the Board on the basis of such medical evidence  as the Board deems warranted under the circumstances.           (o)   “Effective Date” means the effective date of this Plan, which is the earlier of (i) the date  that this Plan is first approved by the Company’s stockholders, and (ii) the date this Plan is adopted by the  Board.         (p)   “Employee” means any person employed by the Company or an Affiliate.  However,  service solely as a Director, or payment of a fee for such services, will not cause a Director to be  considered an “Employee” for purposes of the Plan.         (q)   “Entity” means a corporation, partnership, limited liability company or other entity.         (r)   “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules  and regulations promulgated thereunder.         (s)   “Exchange Act Person” means any natural person, Entity or “group” (within the  meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” will not  include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the  Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an  employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter  temporarily holding securities pursuant to a registered public offering of such securities, (iv) an Entity  Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions  as their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the  meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the Owner,  directly or indirectly, of securities of the Company representing more than 50% of the combined voting  power of the Company’s then outstanding securities.         (t)   “Fair Market Value” means, as of any date, the value of the Common Stock determined  by the Board in compliance with Section 409A of the Code or, in the case of an Incentive Stock Option,  in compliance with Section 422 of the Code.          (u)   “Incentive Stock Option” means an option granted pursuant to Section 5 of the Plan that  is intended to be, and that qualifies as, an “incentive stock option” within the meaning of Section 422 of  the Code.         (v)   “Nonstatutory Stock Option” means an option granted pursuant to Section 5 of the Plan  that does not qualify as an Incentive Stock Option.                                         19.   

 

      (w)   “Officer” means any person designated by the Company as an officer.          (x)   “Option” means an Incentive Stock Option or a Nonstatutory Stock Option to purchase  shares of Common Stock granted pursuant to the Plan.         (y)   “Option Agreement” means a written agreement between the Company and an  Optionholder evidencing the terms and conditions of an Option grant.  Each Option Agreement will be  subject to the terms and conditions of the Plan.         (z)   “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if  applicable, such other person who holds an outstanding Option.         (aa)  “Other Stock Award” means an award based in whole or in part by reference to the  Common Stock which is granted pursuant to the terms and conditions of Section 6(c).         (bb)  “Other Stock Award Agreement” means a written agreement between the Company and  a holder of an Other Stock Award evidencing the terms and conditions of an Other Stock Award grant.   Each Other Stock Award Agreement will be subject to the terms and conditions of the Plan.         (cc)  “Own,” “Owned,” “Owner,” “Ownership”  A person or Entity will be deemed to “Own,”  to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or  Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise,  has or shares voting power, which includes the power to vote or to direct the voting, with respect to such  securities.         (dd)  “Participant” means a person to whom a Stock Award is granted pursuant to the Plan or,  if applicable, such other person who holds an outstanding Stock Award.         (ee)  “Plan” means this 2018 Equity Incentive Plan.         (ff)  “Restricted Stock Award” means an award of shares of Common Stock which is granted  pursuant to the terms and conditions of Section 6(a).         (gg)  “Restricted Stock Award Agreement” means a written agreement between the Company  and a holder of a Restricted Stock Award evidencing the terms and conditions of a Restricted Stock  Award grant.  Each Restricted Stock Award Agreement will be subject to the terms and conditions of the  Plan.         (hh)  “Restricted Stock Unit Award” means a right to receive shares of Common Stock which  is granted pursuant to the terms and conditions of Section 6(b).         (ii)  “Restricted Stock Unit Award Agreement” means a written agreement between the  Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a  Restricted Stock Unit Award grant.  Each Restricted Stock Unit Award Agreement will be subject to the  terms and conditions of the Plan.          (jj)  “Rule 405” means Rule 405 promulgated under the Securities Act.           (kk)  “Rule 701” means Rule 701 promulgated under the Securities Act.                                           20.   

 

      (ll) “Securities Act” means the Securities Act of 1933, as amended.         (mm)  “Stock Appreciation Right” or “SAR” means a right to receive the appreciation on  Common Stock that is granted pursuant to the terms and conditions of Section 5.         (nn)  “Stock Appreciation Right Agreement” means a written agreement between the  Company and a holder of a Stock Appreciation Right evidencing the terms and conditions of a Stock  Appreciation Right grant.  Each Stock Appreciation Right Agreement will be subject to the terms and  conditions of the Plan.         (oo)  “Stock Award” means any right to receive Common Stock granted under the Plan,  including an Incentive Stock Option, a Nonstatutory Stock Option, a Restricted Stock Award, a Restricted  Stock Unit Award, a Stock Appreciation Right or any Other Stock Award.         (pp)  “Stock Award Agreement” means a written agreement between the Company and a  Participant evidencing the terms and conditions of a Stock Award grant.  Each Stock Award Agreement  will be subject to the terms and conditions of the Plan.         (qq)  “Subsidiary” means, with respect to the Company, (i) any corporation of which more  than 50% of the outstanding capital stock having ordinary voting power to elect a majority of the board of  directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of  such corporation will have or might have voting power by reason of the happening of any contingency) is  at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability  company or other entity in which the Company has a direct or indirect interest (whether in the form of  voting or participation in profits or capital contribution) of more than 50%.         (rr)  “Ten Percent Stockholder” means a person who Owns (or is deemed to Own pursuant to  Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of all  classes of stock of the Company or any Affiliate.                                            21.

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