Document:

Exhibit 10.21

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (the “Agreement”) is entered into as of the 29th day of January, 2021, by and between iPower
Inc., a Nevada corporation (the “Company”), and Kevin Vassily, an individual residing at the address
set forth on Schedule A hereto (the “Executive”).

 

INTRODUCTION

 

WHEREAS, the Company is in the business of the
sale of hydroponic equipment (the “Business”); and

 

WHEREAS, the Company wishes
to employ the Executive under the title and capacity set forth on Schedule A hereto; and

 

WHEREAS, the Executive desires
to be employed by the Company in such capacity, subject to the terms of this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the premises and mutual promises herein below set forth, the parties hereby agree as follows:

 

1.             
Employment Period. The initial term of the Executive’s employment by the Company pursuant to this Agreement
shall commence upon the date hereof (the “Effective Date”) and shall continue for that period of calendar months
from the Effective Date set forth on Schedule A hereto (the “Employment Period”). Thereafter, the Employment
Period shall automatically renew for successive periods of one (1) year each, unless either party shall have given to the other
at least thirty (30) days’ prior written notice of their intention not to renew the Executive’s employment prior to
the end of the Employment Period or the then applicable renewal term, as the case may be. In any event, the Employment Period may
be terminated as provided herein.

 

		2.	Employment; Duties.

 

(a)           
Subject to the terms and conditions set forth herein, the Company hereby employs the Executive to act for the Company during
the Employment Period in the capacity set forth on Schedule A hereto, and the Executive hereby accepts such employment.
The duties and responsibilities of the Executive shall include such duties and responsibilities appropriate to such office and
as are normally associated with and appropriate for such position and as the Company’s board of directors (the “Board”)
may from time to time reasonably assign to the Executive.

 

(b)          
Executive recognizes that during the period of Executive’s employment hereunder, Executive owes an undivided duty
of loyalty to the Company, and Executive will use Executive’s good faith efforts to promote and develop the business of the
Company and its subsidiaries (the Company’s subsidiaries from time to time, together with any other affiliates of the Company,
the “Affiliates”). Executive shall devote all of Executive’s business time, attention and skills to the
performance of Executive’s services as an executive of the Company. Recognizing and acknowledging that it is essential for
the protection and enhancement of the brand name, reputation and business of the Company and the goodwill pertaining thereto, Executive
shall perform the Executive’s duties under this Agreement professionally, in accordance with the applicable laws, rules and
regulations and such standards, policies and procedures established by the Company and the industry from time to time.

 

(c)           
However, the parties agree that: (i) Executive may devote a reasonable amount of his time to civic, community, or charitable
activities and may serve as a director of other corporations (provided that any such other corporation is not a competitor of the
Company, as determined by the Board) and to other types of business or public activities not expressly mentioned in this paragraph
and (ii) Executive may participate as a non-employee director and/or investor in other companies and projects as disclosed by Executive
to, and approved by, the Board, so long as Executive’s responsibilities with respect thereto do not conflict or interfere
with the faithful performance of his duties to the Company.

 

 

 

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3.             
Place of Employment The Executive’s services shall be performed at the Company’s offices located at 2399
Bateman Ave., Duarte, CA 91010, at any other location at which the Company now or hereafter has a business facility, at employee’s
home office, or at any other location where Executive’s presence is necessary to perform his duties. The parties acknowledge
that the Executive may be required to travel in connection with the performance of his duties hereunder.

 

4.             
Base Salary. The Executive shall be entitled to receive a salary from the Company during the Employment Period at
a rate per year indicated on Schedule A hereto (the “Base Salary”). The Base Salary shall be payable
in monthly installments in accordance with the Company’s customary payroll practices. The Executive’s Base Salary may
be increased on each anniversary of the Effective Date, at the Board’s sole discretion.

 

		5.	Bonus.

 

(a)         
The Executive shall be eligible to receive (i) a guaranteed cash bonus (the “Annual Bonus”), plus (iii) an annual
performance cash bonus (the “Performance Bonus”), which Performance Bonus shall be payable solely at the discretion
of the Company’s board of directors and shall be earned by the Executive based upon the level of achievement of specific
operational, financial or other milestones by the Company established by the Board in consultation with the Executive (the “Milestones”)
indicated on the attached Schedule B, and based upon the Executive’s performance of the Executive Duties set forth
on Schedule A.

 

(b)         
The Executive shall be eligible to participate in any other bonus or incentive program established by the Company for executives
of the Company.

 

		6.	Other Benefits

 

(a)        
Grant of Restricted Stock Units. The Executive shall be entitled to receive a number of restricted stock units (“Restricted
Stock Units”) as set forth on Schedule A hereto, issuable under the Company’s 2020 Equity Incentive Plan,
which will vest in accordance with the terms of a separate Restricted Stock Unit Award Agreement, a form of which is attached hereto
as Exhibit A. Any additional equity awards to the Executive shall be at the option of the Board.

 

(b)        
Restrictions. Any and all shares of stock, options, restricted stock units and other equity awards granted to or
owned by the Executive will be subject to the share ownership guidelines and insider trading and blackout policies adopted from
time to time by the Board of Directors for senior executives of the Company and will also be subject to applicable holding periods
and transaction reporting requirements under applicable securities laws.

 

(c)         
Insurance and Other Benefits. During the Employment Period, the Executive and the Executive’s dependents shall
be entitled to participate in any Company insurance programs and any applicable benefit plans, as the same may be adopted and/or
amended from time to time (the “Benefits”). The Executive shall be bound by all of the policies and procedures
relating to Benefits established by the Company from time to time.

 

(d)        
Vacation; Personal Days. During the Employment Period, the Executive shall be entitled to an annual vacation of 34
working days, such duration consistent with the Company’s policies from time to time, as determined by the Board. The Executive
shall be entitled to paid personal days on a basis consistent with the Company’s other senior executives, as determined by
the Board.

 

(e)       
Expense Reimbursement. The Company shall reimburse the Executive for all reasonable business, promotional, travel
and entertainment expenses (“Reimbursable Expenses”) incurred or paid by the Executive during the Employment Period
in the performance of Executive’s services under this Agreement on a basis consistent with the Company’s other senior
executives, as determined by the Board, provided that the Executive furnishes to the Company appropriate documentation required
by the Internal Revenue Code and/or other taxing authorities in a timely fashion in connection with such expenses and shall furnish
such other documentation and accounting as the Company may from time to time reasonably request.

 

 

 

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7.             
Termination; Compensation Due Upon Termination of Employment. The Executive’s employment with the Company shall
be entirely “at-will,” meaning that either the Executive or the Company may terminate such employment relationship
by terminating this Agreement in writing delivered to the other party at any time for any reason or for no reason at all, subject,
however, to the terms of this Section 7. The Executive’s right to compensation for periods after the date his employment
with the Company terminates shall be determined in accordance with the provisions of paragraphs (a) through (e) below.

 

		(a)	Resignation and Termination

 

(i)            
Voluntary Resignation. The Executive may terminate his employment at any time upon thirty (30) days prior written
notice to the Company. In the event of the Executive’s voluntary termination of employment other than for Good Reason (as
defined below), the Company shall have no obligation to make payments to the Executive in accordance with the provisions of Sections
4 or 5, except as otherwise required by this Agreement or by applicable law, to provide the benefits described in Section 6 for
periods after the date on which the Executive’s employment with the Company terminates due to the Executive’s voluntary
resignation, except for the payment of the Executive’s Base Salary accrued through the date of such resignation.

 

		(ii)	Termination

 

(A)         
The Company may terminate the employment at any time upon thirty (30) days prior written notice to the Executive. With respect
to the Annual Bonus, to the extent the Milestones are achieved or, in the absence of Milestones, the Board has, in its sole discretion,
otherwise determined an amount for the Executive’s bonus for the current Employment Period, pay the Executive a pro rata
portion of the Annual Bonus for the year of the Employment Period on the date such Annual Bonus would have been payable to the
Executive had the Executive remained employed by the Company. The Executive shall have no further rights under this Agreement or
otherwise to receive any other compensation or benefits after such termination of employment.

 

(B)          
If, following a termination of employment, the Executive breaches the provisions of Sections 8, 9 or 10 hereof, the Executive
shall not be eligible, as of the date of such breach, for the payments and benefits described in Section 7(a)(ii)(A) above, and
any and all obligations and agreements of the Company with respect to such payments shall thereupon cease.

 

(b)           
Discharge for Cause. Upon written notice to the Executive, the Company may terminate the Executive’s employment
for “Cause” if any of the following events shall occur:

 

(i)            
any act or omission that constitutes a material breach by the Executive of any of his obligations under this Agreement;

 

(ii)           
the willful and continued failure or refusal of the Executive to satisfactorily perform the duties reasonably required of
him as an employee of the Company;

 

(iii)          
the Executive’s conviction of, or plea of nolo contendere to, (i) any felony or (ii) a crime involving dishonesty
or moral turpitude or which could reflect negatively upon the Company or otherwise impair or impede its operations;

 

(iv)          
the Executive’s engaging in any misconduct, negligence, act of dishonesty (including, without limitation, theft or
embezzlement), violence, threat of violence or any activity that could result in any violation of federal securities laws, in each
case, that is injurious to the Company or any of its Affiliates;

 

(v)          
the Executive’s knowing, willful, and material breach of a written policy of the Company or the rules of any governmental
or regulatory body applicable to the Company;

 

 

 

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(vi)          
the Executive’s refusal to follow the directions of the Board, unless such directions are, in the written opinion
of legal counsel, illegal or in violation of applicable regulations;

 

(vii)        
any other willful misconduct by the Executive which is materially injurious to the financial condition or business reputation
of the Company or any of its Affiliates, or

 

 (viii)         the Executive’s breach of his obligations under Section 8, 9 or 10 hereof.

 

In the event Executive
is terminated for Cause, the Company shall have no obligation to make payments to Executive in accordance with the provisions of
Sections 4 or 5, or, except as otherwise required by law, to provide the benefits described in Section 6, for periods after the
Executive’s employment with the Company is terminated on account of the Executive’s discharge for Cause except for
the Executive’s then applicable Base Salary accrued through the date of such termination.

 

(c)           
Termination for Good Reason. The Executive may terminate this Agreement at any time for Good Reason. In the event
of termination under this paragraph (c), the Company shall make payments to the Executive in accordance with the provisions of
Sections 4 or 5 as required by this Agreement or by applicable law, to provide the benefits described in Section 6 for periods
after the date on which the Executive’s employment with the Company subject to the Executive’s continued compliance
with Sections 8, 9 and 10 of this Agreement. With respect to the Annual Bonus and Performance Bonus, to the extent the Milestones
are achieved or, in the absence of Milestones, the Board has, in its sole discretion, otherwise determined an amount for the Executive’s
bonus for the current Employment Period, pay the Executive a pro rata portion of the Annual Bonus and Performance Bonus for the
year of the Employment Period on the date such Annual Bonus or Performance Bonus would have been payable to the Executive had
the Executive remained employed by the Company. The Executive shall have no further rights under this Agreement or otherwise to
receive any other compensation or benefits after such termination of employment. For the purposes of this Agreement, “Good
Reason” shall mean any of the following (without Executive’s express written consent):

 

(i)           
the assignment to the Executive of duties that are significantly different from, and that result in a substantial diminution
of, the duties that he assumed on the Effective Date;

 

(ii)           
removal of the Executive from his position as indicated on Schedule A hereto, or the assignment to the Executive
of duties that are significantly different from, and that result in a substantial diminution of, the duties that he assumed under
this Agreement, within twelve (12) months after a Change of Control (as defined below);

 

(iii)          
a reduction by the Company in the Executive’s then applicable Base Salary or other compensation, unless said reduction
is pari passu with other senior executives of the Company;

 

(iv)          
the taking of any action by the Company that would, directly or indirectly, materially reduce the Executive’s benefits,
unless said reductions are pari passu with other senior executives of the Company; or

 

(v)           
a breach by the Company of any material term of this Agreement that is not cured by the Company within thirty (30) days
following receipt by the Company of written notice thereof.

 

 

 

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For
purposes of this Agreement, “Change of Control” shall mean the occurrence of any one or more of the following: (i)
the accumulation, whether directly, indirectly, beneficially or of record, by any individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of 50% or
more of the shares of the outstanding equity securities of the Company, (ii) a merger or consolidation of the Company in which
the Company does not survive as an independent company or upon the consummation of which the holders of the Company’s outstanding
equity securities prior to such merger or consolidation own less than 50% of the outstanding equity securities of the Company after
such merger or consolidation, or (iii) a sale of all or substantially all of the assets of the Company; provided, however, that
the following acquisitions shall not constitute a Change of Control for the purposes of this Agreement: (A) any acquisitions of
common stock or securities convertible into common stock directly from the Company, or (B) any acquisition of common stock or securities
convertible into common stock by any employee benefit plan (or related trust) sponsored by or maintained by the Company.

 

(f)            
Notice of Termination. Any termination of employment by the Company or the Executive shall be communicated by a
written “Notice of Termination” to the other party hereto given in accordance with Section 16 of this Agreement. In
the event of a termination by the Company for Cause, the Notice of Termination shall (i) indicate the specific termination provision
in this Agreement relied upon, (ii) set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated and (iii) specify the date of termination, which
date shall be the date of such notice. The failure by the Executive or the Company to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Cause shall not waive any right of the Executive or the Company, respectively,
hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s
or the Company’s rights hereunder.

 

(g)          
Resignation of Executive Officer. The termination of the Executive’s employment for any reason will constitute
the Executive’s resignation from (i) any director, officer or employee position the Executive has with the Company or any
of its Affiliates, and (ii) all fiduciary positions (including as a trustee) the Executive holds with respect to any employee benefit
plans or trusts established by the Company. The Executive agrees that this Agreement shall serve as written notice of resignation
in this circumstance, unless otherwise required by any plan or applicable law.

 

		8.	Non-Competition; Non-Solicitation.

 

(a)           
For the duration of the Employment Period and, unless the Company terminates the Executive’s employment without Cause,
during the Severance Period (the “Non-compete Period”), the Executive shall not, directly or indirectly, except
as specifically provided in the last sentence of Section 2(c) hereof, engage or invest in, own, manage, operate, finance, control
or participate in the ownership, management, operation, financing, or control of, be employed by, associated with, or in any manner
connected with, lend any credit to, or render services or advice to, any business, firm, corporation, partnership, association,
joint venture or other entity that engages or conducts any business the same as or substantially similar to the Business or any
other business engaged in or proposed to be engaged in or conducted by the Company and/or any of its Affiliates during the Employment
Period, or then included in the future strategic plan of the Company and/or any of its Affiliates, anywhere within North America;
provided, however, that the Executive may own less than 5% in the aggregate of the outstanding shares of any class
of securities of any enterprise (but without otherwise participating in the activities of such enterprise), other than any such
enterprise with which the Company competes or is currently engaged in a joint venture, if such securities are of a class listed
on any national or regional securities exchange or have been registered under Section 12(b) or (g) of the Exchange Act.

 

(b)           
During the Employment Period and for a period of 24 months following termination of the Executive’s employment with
the Company, the Executive shall not:

 

(i)           
solicit or hire, or attempt to recruit, persuade, solicit or hire, any employee, or independent contractor of, or consultant
to, the Company, or its Affiliates, to leave the employment (or independent contractor relationship) thereof, whether or not any
such employee or independent contractor is party to an employment agreement; or

 

 

 

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(ii)           
attempt in any manner to solicit or accept from any customer or client of the Company or any of its Affiliates, with whom
the Company or any of its Affiliates had significant contact during the term of this Agreement, business of the kind or competitive
with the business done by the Company or any of its Affiliates with such customer or to persuade or attempt to persuade any such
customer to cease to do business or to reduce the amount of business which such customer has customarily done or is reasonably
expected to do with the Company or any of its Affiliates or if any such customer elects to move its business to a person other
than the Company or any of its Affiliates, provide any services (of the kind or competitive with the Business of the Company or
any of its Affiliates) for such customer, or have any discussions regarding any such service with such customer, on behalf of
such other person.

 

(c)          
The Executive recognizes and agrees that because a violation by the Executive of his obligations under this Section will
cause irreparable harm to the Company that would be difficult to quantify and for which money damages would be inadequate, the
Company shall have the right to injunctive relief to prevent or restrain any such violation, without the necessity of posting a
bond. The Non-compete Period will be extended by the duration of any violation by the Executive of any of his obligations under
this Section.

 

(d)          
The Executive expressly agrees that the character, duration and scope of the covenant not to compete are reasonable in light
of the circumstances as they exist at the date upon which this Agreement has been executed. However, should a determination nonetheless
be made by a court of competent jurisdiction at a later date that the character, duration or geographical scope of the covenant
not to compete is unreasonable in light of the circumstances as they then exist, then it is the intention of the Executive, on
the one hand, and the Company, on the other, that the covenant not to compete shall be construed by the court in such a manner
as to impose only those restrictions on the conduct of the Executive which are reasonable in light of the circumstances as they
then exist and necessary to assure the Company of the intended benefit of the covenant not to compete.

 

9.            
Inventions and Patents. The Executive acknowledges that all inventions, innovations, improvements, know-how, plans,
development, methods, designs, analyses, specifications, software, drawings, reports and all similar or related information (whether
or not patentable or reduced to practice) which related to any of the Company’s actual or proposed business activities and
which are created, designed or conceived, developed or made by the Executive during the Executive’s past or future employment
by the Company or any Affiliates, or any predecessor thereof (“Work Product”), belong to the Company, or its Affiliates,
as applicable. Any copyrightable work falling within the definition of Work Product shall be deemed a “work made for hire”
and ownership of all right title and interest shall rest in the Company. The Executive hereby irrevocably assigns, transfers and
conveys, to the full extent permitted by law, all right, title and interest in the Work Product, on a worldwide basis, to the Company
to the extent ownership of any such rights does not automatically vest in the Company under applicable law. The Executive will
promptly disclose any such Work Product to the Company and perform all actions requested by the Company (whether during or after
employment) to establish and confirm ownership of such Work Product by the Company (including, without limitation, assignments,
consents, powers of attorney and other instruments).

 

10.           
Confidentiality.

 

(a)           
The Executive understands that the Company and/or its Affiliates, from time to time, may impart to the Executive confidential
information, whether such information is written, oral, electronic or graphic.

 

(b)           
For purposes of this Agreement, “Confidential Information” means information, which is used in the business
of the Company or its Affiliates and (i) is proprietary to, about or created by the Company or its Affiliates, (ii) gives the
Company or its Affiliates some competitive business advantage or the opportunity of obtaining such advantage or the disclosure
of which could be detrimental to the interests of the Company or its Affiliates, (iii) is designated as Confidential Information
by the Company or its Affiliates, is known by the Executive to be considered confidential by the Company or its Affiliates, or
from all the relevant circumstances should reasonably be assumed by the Executive to be confidential and proprietary to the Company
or its Affiliates, or (iv) is not generally known by non-Company personnel. Such Confidential Information includes, without limitation,
the following types of information and other information of a similar nature (whether or not reduced to writing or designated
as confidential):

 

 

 

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(i)            
internal personnel and financial information of the Company or its Affiliates, vendor information (including vendor characteristics,
services, prices, lists and agreements), purchasing and internal cost information, internal service and operational manuals, and
the manner and methods of conducting the business of the Company or its Affiliates;

 

(ii)           
marketing and development plans, price and cost data, price and fee amounts, pricing and billing policies, bidding, quoting
procedures, marketing techniques, forecasts and forecast assumptions and volumes, and future plans and potential strategies (including,
without limitation, all information relating to any oil and gas prospect and the identity of any key contact within the organization
of any acquisition prospect) of the Company or its Affiliates which have been or are being discussed;

 

(iii)         
names of customers and their representatives, contracts (including their contents and parties), customer services, and the
type, quantity, specifications and content of products and services purchased, leased, licensed or received by customers of the
Company or its Affiliates; and

 

(iv)          
confidential and proprietary information provided to the Company or its Affiliates by any actual or potential customer,
government agency or other third party (including businesses, consultants and other entities and individuals).

 

The Executive hereby acknowledges
the Company’s exclusive ownership of such Confidential Information.

 

(c)           
The Executive agrees as follows: (1) only to use the Confidential Information to provide services to the Company and its
Affiliates; (2) only to communicate the Confidential Information to fellow employees, agents and representatives on a need-to-know
basis; and (3) not to otherwise disclose or use any Confidential Information, except as may be required by law or otherwise authorized
by the Board. Upon demand by the Company or upon termination of the Executive’s employment, the Executive will deliver to
the Company all manuals, photographs, recordings and any other instrument or device by which, through which or on which Confidential
Information has been recorded and/or preserved, which are in the Executive’s possession, custody or control.

 

11.           
Executive’s Representation. The Executive hereby represents that the Executive’s entry into this Agreement
and performance of the services hereunder will not violate the terms or conditions of any other agreement to which the Executive
is a party.

 

12.           
Arbitration. In the event of any breach arising from the performance of this Agreement, either party may request
arbitration. In such event, the parties will submit to arbitration by a qualified arbitrator with the definition and laws of the
State of California. Such arbitration shall be final and binding on both parties.

 

13.           
Governing Law/Jurisdiction. This Agreement and any disputes or controversies arising hereunder shall be construed
and enforced in accordance with and governed by the internal laws of the State of California without regard to the conflicts of
laws principles thereof.

 

		14.	Public Company Obligations; Indemnification.

 

(a)           
Executive acknowledges that the Company intends to become a publicly reporting company whose shares of common stock will
be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and whose common stock
will be registered under the Exchange Act, and that, after the Company becomes a publicly reporting company, this Agreement will
be subject to the public filing requirements of the Exchange Act. In addition, both parties acknowledge that the Executive’s
compensation and perquisites (each as determined by the rules of the US Securities and Exchange Commission (the “SEC”)
or any other regulatory body or exchange having jurisdiction) (which may include benefits or regular or occasional aid/assistance,
such as recreation, club memberships, meals, education for his family, vehicle, lodging or clothing, occasional bonuses or anything
else he receives, during the Employment Period and any renewals thereof, in cash or in kind) paid or payable or received or receivable
under this Agreement or otherwise, and his transactions and other dealings with the Company, may be required to be publicly disclosed.

 

 

 

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(b)           
Executive acknowledges and agrees that the applicable insider trading rules, transaction reporting rules, limitations on
disclosure of non-public information and other requirements set forth in the Securities Act, the Exchange Act and rules and regulations
promulgated by the SEC may apply to this Agreement and Executive’s employment with the Company.

 

(c)           
Executive (on behalf of himself, as well as the Executive’s executors, heirs, administrators and assigns) absolutely
and unconditionally agrees to indemnify and hold harmless the Company and all of its past, present and future affiliates, executors,
heirs, administrators, shareholders, employees, officers, directors, attorneys, accountants, agents, representatives, predecessors,
successors and assigns from any and all claims, debts, demands, accounts, judgments, causes of action, equitable relief, damages,
costs, charges, complaints, obligations, controversies, actions, suits, proceedings, expenses, responsibilities and liabilities
of every kind and character whatsoever (including, but not limited to, reasonable attorneys’ fees and costs) in the event
of Executive’s knowing, willful and material breach of any obligation of Executive under the Securities Act, the Exchange
Act, any rules promulgated by the SEC and any other applicable federal, state or foreign laws, rules, regulations or orders.

 

15.           
Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof and thereof and supersedes and cancels any and all previous agreements, both written and oral, regarding
the subject matter hereof between the parties hereto. This Agreement shall not be changed, altered, modified or amended, except
by a written agreement signed by both parties hereto.

 

16.           
Notices. All notices, requests, demands and other communications called for or contemplated hereunder shall be in
writing and shall be deemed to have been given when delivered to the party to whom addressed or when sent by telecopy (if promptly
confirmed by registered or certified mail, return receipt requested, prepaid and addressed) to the parties, their successors in
interest, or their assignees at the following addresses, or at such other addresses as the parties may designate by written notice
in the manner aforesaid:

 

		(a)	to the Company at:

 

iPower Inc.

2399 Bateman Avenue

Daurte, CA 91010

Attn: Chief Executive Officer Email: lawrence.t@meetipower.com

 

with a copy to:

 

Michelman & Robinson
LLP 800 Third Avenue, 24th Floor New York, NY 10022

Attn: Megan J. Penick, Esq.

Email: mpenick@mrllp.com

 

		(b)	to the Executive as set forth on Schedule A hereto.

 

All
such notices, requests and other communications will (i) if delivered personally to the address as provided in this Section, be
deemed given upon delivery, (ii) if delivered by facsimile transmission to the facsimile number as provided for in this Section,
be deemed given upon facsimile confirmation, (iii) if delivered by mail in the manner described above to the address as provided
for in this Section, be deemed given on the earlier of the third business day following mailing or upon receipt and (iv) if delivered
by overnight courier to the address as provided in this Section, be deemed given on the earlier of the first business day following
the date sent by such overnight courier or upon receipt (in each case regardless of whether such notice, request or other communication
is received by any other person to whom a copy of such notice is to be delivered pursuant to this Section). Either party may, by
notice given to the other party in accordance with this Section, designate another address or person for receipt of notices hereunder.

 

 

 

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17.          
Severability. If any term or provision of this Agreement, or the application thereof to any person or under any circumstance,
shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such terms to the persons
or under circumstances other than those as to which it is invalid or unenforceable, shall be considered severable and shall not
be affected thereby, and each term of this Agreement shall be valid and enforceable to the fullest extent permitted by law. The
invalid or unenforceable provisions shall, to the extent permitted by law, be deemed amended and given such interpretation as to
achieve the economic intent of this Agreement.

 

18.          
Waiver. The failure of any party to insist in any one instance or more upon strict performance of any of the terms
and conditions hereof, or to exercise any right or privilege herein conferred, shall not be construed as a waiver of such terms,
conditions, rights or privileges, but same shall continue to remain in full force and effect. Any waiver by any party of any violation
of, breach of or default under any provision of this Agreement by the other party shall not be construed as, or constitute, a continuing
waiver of such provision, or waiver of any other violation of, breach of or default under any other provision of this Agreement.

 

19.           
Successors and Assigns. This Agreement shall be binding upon the Company and any successors and assigns of the Company.
Neither this Agreement nor any right or obligation hereunder may be assigned by the Executive. The Company may assign this Agreement
and its right and obligations hereunder, in whole or in part.

 

20.           
Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original,
and all of which together shall constitute one and the same instrument. Additionally, a facsimile counterpart of this Agreement
shall have the same effect as an originally executed counterpart.

 

21.           
Headings. Headings in this Agreement are for reference purposes only and shall not be deemed to have any substantive
effect.

 

22.          
Opportunity to Seek Advice. The Executive acknowledges and confirms that he has had the opportunity to seek such
legal, financial and other advice and representation as he has deemed appropriate in connection with this Agreement, that the Executive
is fully aware of its legal effect, and that Executive has entered into it freely based on the Executive’s judgment and not
on any representations or promises other than those contained in this Agreement.

 

23.           
Withholding and Payroll Practices. All salary, severance payments, bonuses or benefits payments made by the Company
under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law and shall
be paid in the ordinary course pursuant to the Company’s then existing payroll practices.

 

[The next page is
the signature page.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	9	 

     

    

 

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first written above.

 

	 	iPOWER INC.
	 	 	 
	 	 	 
	 	By:	/s/ Chenlong Tan
	 	 	 
	 	 	Name:  Chenlong Tan
	 	 	Title:    Chief Executive Officer
	 	 	 
	 	 	 
	 	EXECUTIVE:
	 	 	 
	 	 	/s/ Kevin Vassily
	 	 	 
	 	 	Name:   Kevin Vassily

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

Schedule A

 

 

		a)	Employment Period: 48 months

 

		b)	Employment

 

i)             
Title: Chief Financial Officer

 

ii)            
Executive Duties:

 

In his capacity as Chief
Financial Officer, the Executive shall perform such services, consistent with his office, including, but not limited to business
planning, budgeting, managing and implementing all of the financial activities of the Company, and such other duties as shall be
assigned to him by the Board of Directors of the Company from time to time, devoting such time and effort and performing all of
the functions of the offices held by him, as directed by the Board of Directors from time-to-time.

 

		c)	Compensations

 

		i)	Base Salary: $240,000 per year.

 

		ii)	Target Annual Bonus: (i) $60,000 guaranteed bonus; and (ii) up to $60,000
performance bonus to be determined by the Board in its sole discretion.

 

		iii)	First Year Restricted Stock Grant: 5,000 shares for each $100 million of IPO
market cap, issuable under the Company’s 2020 Equity Incentive Plan, vesting quarterly in one year commencing on the completion
date of IPO, in accordance with the terms of the Restricted Stock Unit Award Agreement.

 

		iv)	Second to Fourth Year Restricted Stock Grant: Adjustments will be made based
on previous year grant and achievements.

 

		d)	This Agreement cannot be terminated within 90 days of the Effective Date.

 

		e)	Executive Contact Information:

 

 

Kevin D. Vassily

3335 SW 86th Ave

Portland, OR 97225

kdvass@gmail.com

+1.415.465.4377

 

 

 

 

 

 

 

 

 

    	 	11	 

     

    

 

 

 

Schedule B

 

Milestones

 

	Key Performance Indicators	Level to be Achieved by

                                                                                the Company
	Year
	TBD	%	2021
	 	%	2021
	 	%	2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	12	 

     

    

 

Exhibit A

 

Form of Restricted Stock Award Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	13Exhibit 10.1

​
​
BROOKS AUTOMATION, INC.
2020 EQUITY INCENTIVE PLAN
		1.	DEFINITIONS.

Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this Brooks Automation, Inc. 2020 Equity Incentive Plan, have the following meanings:
“Administrator” means the Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the term “Administrator” means the Committee.
“Affiliate” means a corporation or other entity which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.
“Agreement” means a written or electronic document setting forth the terms of a Stock Right delivered pursuant to the Plan in such form as the Administrator shall approve.
“Board of Directors” means the Board of Directors of the Company.
“Cause” means, with respect to a Participant (a) the willful failure to perform, or serious negligence in the performance of, the Participant’s duties and responsibilities for the Company or any of its subsidiaries that remains uncured, or continues, beyond the fifteenth (15th) day following the date on which the Company gives the Participant notice specifying in reasonable detail the nature of the failure or negligence; (b) fraud, embezzlement or other dishonesty with respect to the Company or any of its subsidiaries or customers; (c) conviction of, or a plea of guilty or nolo contendere with respect to, a felony or to any crime (whether or not a felony) that involves moral turpitude; or (d) breach of fiduciary duty or violation of any covenant of confidentiality, assignment of rights to intellectual property, non-competition or non-solicitation of customers or employees; provided, however, that any provision in an agreement between a Participant and the Company or an Affiliate, which contains a conflicting definition of Cause for termination and which is in effect at the time of such termination, shall supersede this definition with respect to that Participant.  The determination of the Administrator as to the existence of Cause will be conclusive on the Participant and the Company.
“Change in Control” means the occurrence of any of the following events:
		(i)	Any Person acquires beneficial ownership (within the meaning of Rule 13d 3 promulgated under the Exchange Act) of thirty-five (35%) percent or more of either (x) the then outstanding shares of Common Stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, that for purposes hereof the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company, or (D) any Business Combination (but except as provided in subclause (iii) below a Business Combination may nevertheless constitute a Change in Control under subclause (iii)); and provided further, that an acquisition by a Person of thirty-five percent (35%) percent or more but less than fifty (50%) percent of the Outstanding Company Common Stock or of the combined voting power of the Outstanding Company Voting Securities shall not 

Exhibit 10.1

			constitute a Change in Control under this subclause (i) if within fifteen (15) days of the Board of Directors being advised that such ownership level has been reached, a majority of the “Incumbent Directors” (as hereinafter defined) then in office adopt a resolution approving the acquisition of that level of securities ownership by such Person; or

		(ii)	Individuals who, as of the date of grant, constituted the Board of Directors (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board of Directors; provided, that any individual who becomes a member of the Board of Directors subsequent to the date of grant and whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors shall be treated as an Incumbent Director unless he or she assumed office as a result of an actual or threatened election contest with respect to the election or removal of directors; or

		(iii)	There is consummated a reorganization, merger or consolidation involving the Company, or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case unless, following such Business Combination, (x) the Persons who were the beneficial owners, respectively, of the Outstanding Company Common Stock and of the combined voting power of the Outstanding Company Voting Securities immediately prior to the Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and of the combined voting power of the Outstanding Company Voting Securities, as the case may be, (y) unless in connection with such Business Combination a majority of the Incumbent Directors then in office determine that this clause (iii) does not apply to such Business Combination, no Person (excluding any entity resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or of such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, thirty-five (35%) percent or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors, except to the extent that such ownership existed prior to the Business Combination and (z) at least a majority of the members of the Board of Directors resulting from such Business Combination were Incumbent Directors at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination.

		(iv)	The stockholders of the Company approve a complete liquidation or dissolution of the Company; provided, that if any payment or benefit payable hereunder upon or following a Change in Control would be required to comply with the limitations of Section 409A(a)(2)(A)(v) of the Code in order to avoid an additional tax under Section 409A of the Code, such payment or benefit shall be made only if such Change in Control constitutes a change in ownership or control of the Company, or a change in ownership of the Company’s assets in accordance with Section 409A of the Code,

“Code” means the United States Internal Revenue Code of 1986, as amended including any successor statute, regulation and guidance thereto.
“Committee” means the committee of the Board of Directors, if any, to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan.
“Common Stock” means shares of the Company’s common stock, $.01 par value per share.

Exhibit 10.1

“Company” means Brooks Automation, Inc., a Delaware corporation.
“Consultant” means any natural person who is an advisor or consultant that provides bona fide services to the Company or its Affiliates, provided that such services are not in connection with the offer or sale of securities in a capital raising transaction, and do not directly or indirectly promote or maintain a market for the Company’s or its Affiliates’ securities.
“Corporate Transaction” means a merger, consolidation, or sale of all or substantially all of the Company’s assets or the acquisition of all of the outstanding voting stock of the Company in a single transaction or a series of related transactions by a single entity other than a transaction to merely change the state of incorporation.
“Disability” or “Disabled” means permanent and total disability as defined in Section 22(e)(3) of the Code.
“Employee” means any employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the Plan.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Fair Market Value” of a Share of Common Stock means:
(1)If the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the closing or, if not applicable, the last price of the Common Stock on the composite tape or other comparable reporting system for the trading day on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date;
(2)If the Common Stock is not traded on a national securities exchange but is traded on the over-the-counter market, if sales prices are not regularly reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close of trading in the over-the-counter market for the most recent trading day on which Common Stock was traded on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date; and
(3)If the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such value as the Administrator, in good faith, shall determine in compliance with applicable laws.
“ISO” means an option intended to qualify as an incentive stock option under Section 422 of the Code.
“Non-Qualified Option” means an option which is not intended to qualify as an ISO.
“Option” means an ISO or Non-Qualified Option granted under the Plan.
“Participant” means an Employee, director or Consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan.  As used herein, “Participant” shall include “Participant’s Survivors” where the context requires.

Exhibit 10.1

“Performance Based Award” means a Stock Grant or Stock-Based Award that vests based on the attainment of written Performance Goals as set forth in Paragraph 9 hereof.
“Performance Goals” means performance goals determined by the Committee in its sole discretion and set forth in an Agreement. The satisfaction of Performance Goals shall be subject to certification by the Committee. The Committee has the authority to take appropriate action with respect to the Performance Goals (including, without limitation, making adjustments to the Performance Goals or determining the satisfaction of the Performance Goals in connection with a Corporate Transaction) provided that any such action does not otherwise violate the terms of the Plan.
“Person” means any individual, entity or other person, including a group within the meaning of Sections 13(d) or 14(d) (2) of the Exchange Act.
“Plan” means this Brooks Automation, Inc.  2020 Equity Incentive Plan.
“Securities Act” means the Securities Act of 1933, as amended.
“Shares” means shares of the Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan.  The Shares issued under the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both.
“Stock-Based Award” means a grant by the Company under the Plan of an equity award or an equity based award which is not an Option or a Stock Grant.
“Stock Grant” means a grant by the Company of Shares under the Plan.
“Stock Right” means a right to Shares or the value of Shares of the Company granted pursuant to the Plan -- an ISO, a Non-Qualified Option, a Stock Grant or a Stock-Based Award.
“Survivor” means a deceased Participant’s legal representatives and/or any person or persons who acquired the Participant’s rights to a Stock Right by will or by the laws of descent and distribution.
		2.	PURPOSES OF THE PLAN.

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

(a)The number of Shares which may be issued from time to time pursuant to this Plan shall be the sum of: (i) 2,500,000 shares of Common Stock and (ii) any shares of Common Stock that are represented by awards granted under the Company’s Amended and Restated 2000 Equity Incentive Plan or the Company’s 2015 Equity Incentive Plan that are forfeited, expire or are cancelled without delivery of shares of Common Stock or which result in the forfeiture of shares of Common Stock back to the Company on or after January 26, 2021 or the equivalent of such number of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination, recapitalization or similar transaction in accordance with Paragraph 25 of this Plan, all of 

Exhibit 10.1

which Shares are eligible to be issued as ISOs; provided, however, that no more than 300,000 Shares shall be added to the Plan pursuant to subsection (ii).
(b)If an Option ceases to be “outstanding”, in whole or in part (other than by exercise), or if the Company shall reacquire (at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the unissued or reacquired Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan.  Notwithstanding the foregoing, if a Stock Right is exercised, in whole or in part, by tender or withholding of Shares or if the Company or an Affiliate’s tax withholding obligation is satisfied by the tender or withholding of Shares, the number of Shares deemed to have been issued under the Plan for purposes of the limitation set forth in Paragraph 3(a) above shall be the number of Shares that were subject to the Stock Right or portion thereof, and not the net number of Shares actually issued.  In addition, Shares repurchased by the Company with the proceeds of the option exercise price may not be reissued under the Plan. However, in the case of ISOs, the foregoing provisions shall be subject to any limitations under the Code.
		4.	ADMINISTRATION OF THE PLAN.

The Administrator of the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee, in which case the Committee shall be the Administrator. Subject to the provisions of the Plan, the Administrator is authorized to:
(a)Interpret the provisions of the Plan and all Stock Rights and to make all rules and determinations which it deems necessary or advisable for the administration of the Plan;
(b)Determine which Employees, directors and Consultants shall be granted Stock Rights;
(c)Determine the number of Shares for which a Stock Right or Stock Rights shall be granted, provided, however, that in no event shall Stock Rights with respect to more than 500,000 Shares be granted to any Participant in any fiscal year; and provided further that in no event shall the aggregate grant date fair value (determined in accordance with ASC 718) of Stock Rights to be granted and any other cash compensation paid to any non-employee director in any calendar year, exceed $750,000, increased to $1,000,000 in the year in which such non-employee director initially joins the Board of Directors;  
(d)Specify the terms and conditions upon which a Stock Right or Stock Rights may be granted provided that no dividends or dividend equivalents shall be paid on any Stock Right prior to the vesting of the underlying Shares and except in the case of (i) death, disability or retirement of the Participant or (ii) a Change in Control, Stock Rights shall not vest, and any right of the Company to restrict or reacquire Shares subject to a Stock Grant shall not lapse, less than one (1) year from the date of grant and any Stock Right subject to the satisfaction of Performance Goals over a performance period shall be subject to a performance period of not less than one year, provided that any time-based vesting with respect to such Stock Right or Stock Grant may accrue incrementally pursuant to the terms of such Stock Right or Stock Grant over such one-year period; and provided further that, notwithstanding the foregoing, Stock Rights may be granted having time-based vesting of less than one (1) year from the date of grant so long as no more than ten percent (10%) of the Shares reserved for issuance under the Plan pursuant to Paragraph 3(a) above (as adjusted under Paragraph 25 of this Plan) may be granted in the aggregate pursuant to such awards, other than Stock Rights granted to non-employee directors paid in lieu of cash fees;
(e)Amend any term or condition of any outstanding Stock Right, other than reducing the exercise price or purchase price, provided that (i) such term or condition as amended is not prohibited by the Plan; (ii) any such amendment shall not impair the rights of a Participant under any Stock Right previously granted without such Participant’s consent or in the event of death of the Participant the Participant’s Survivors; and (iii) any such amendment shall be made only after the Administrator determines whether such amendment would cause any adverse tax consequences to the Participant, including, but not limited to, the annual vesting limitation contained in Section 422(d) of the Code and described in Paragraph 6(b)(iv) below with respect to ISOs and pursuant to Section 409A of the Code;

Exhibit 10.1

(f)Determine and make any adjustments in the Performance Goals included in any Performance Based Awards in compliance with (d) above; and
(g)Adopt any sub-plans applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with or take advantage of any tax or other laws applicable to the Company, any Affiliate or to Participants or to otherwise facilitate the administration of the Plan, which sub-plans may include additional restrictions or conditions applicable to Stock Rights or Shares issuable pursuant to a Stock Right;
provided, however, that all such interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of potential tax consequences under Section 409A of the Code and preserving the tax status under Section 422 of the Code of those Options which are designated as ISOs.  Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be final, unless otherwise determined by the Board of Directors, if the Administrator is the Committee.  In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan that would otherwise be the responsibility of the Committee.
To the extent permitted under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected by it.  The Board of Directors or the Committee may revoke any such allocation or delegation at any time.  Notwithstanding the foregoing, only the Board of Directors or the Committee shall be authorized to grant a Stock Right to any director of the Company or to any “officer” of the Company as defined by Rule 16a-1 under the Exchange Act.
		5.	ELIGIBILITY FOR PARTICIPATION.

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

Each Option shall be set forth in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant.  The Administrator may provide that Options be granted subject to such terms and conditions, consistent with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including, without limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto.  The Option Agreements shall be subject to at least the following terms and conditions:
(a)Non-Qualified Options:  Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non-Qualified Option:
		(i)	Exercise Price:  Each Option Agreement shall state the exercise price (per share) of the Shares covered by each Option, which exercise price shall be determined by the Administrator and shall be at least equal to the Fair Market Value per share of Common Stock on the date of grant of the Option.

Exhibit 10.1

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

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

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

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

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

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

(b)ISOs: Each Option intended to be an ISO shall be issued only to an Employee who is deemed to be a resident of the United States for tax purposes, and shall be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the Internal Revenue Service:
		(i)	Minimum Standards:  The ISO shall meet the minimum standards required of Non-Qualified Options, as described in Paragraph 6(a) above, except clause (i) and (v) thereunder.

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

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

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

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

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

Exhibit 10.1

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

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

		7.	TERMS AND CONDITIONS OF STOCK GRANTS.

Each Stock Grant to a Participant shall state the principal terms in an Agreement duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant.  The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards:
		(i)	Each Agreement shall state the purchase price per share, if any, of the Shares covered by each Stock Grant, which purchase price shall be determined by the Administrator but shall not be less than the minimum consideration required by the Delaware General Corporation Law, if any, on the date of the grant of the Stock Grant;

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

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

		(iv)	Dividends (other than stock dividends to be issued pursuant to Section 25 of the Plan) may accrue but shall not be paid prior to the time, and may be paid only to the extent that the restrictions or rights to reacquire the Shares subject to the Stock Grant lapse.

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

The Administrator shall have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the Administrator may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible into Shares and the grant of stock appreciation rights, phantom stock awards or stock units.  The principal terms of each Stock-Based Award shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant.  The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company.  Each Agreement shall include the terms of any right of the Company including the right to terminate the Stock-Based Award without the issuance of Shares, the terms of any vesting conditions, Performance Goals or events upon which Shares shall be issued. Under no circumstances may the Agreement covering stock appreciation rights (a) have an exercise or base price (per share) that is less than the Fair Market Value per share of Common Stock on the date of grant or (b) expire more than ten years following the date of grant. 
The Company intends that the Plan and any Stock-Based Awards granted hereunder be exempt from the application of Section 409A of the Code or meet the requirements of paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code, to the extent applicable, and be operated in accordance with Section 409A so that any compensation deferred under any Stock-Based Award (and applicable investment earnings) shall not be included in 

Exhibit 10.1

income under Section 409A of the Code.  Any ambiguities in the Plan shall be construed to effect the intent as described in this Paragraph 8.
		9.	PERFORMANCE BASED AWARDS.

The Committee shall determine whether, with respect to a performance period, the applicable Performance Goals have been met with respect to a given Participant and, if they have, to so certify and ascertain the amount of the applicable Performance Based Award.  No Performance Based Awards will be issued for such performance period until such certification is made by the Committee.  The number of Shares issued in respect of a Performance Based Award determined by the Committee for a performance period shall be paid to the Participant at such time as determined by the Committee in its sole discretion after the end of such performance period.
		10.	EXERCISE OF OPTIONS AND ISSUE OF SHARES.

An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company or its designee (in a form acceptable to the Administrator, which may include electronic notice), together with provision for payment of the aggregate exercise price in accordance with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set forth in the Option Agreement.  Such notice shall be signed by the person exercising the Option (which signature may be provided electronically in a form acceptable to the Administrator), shall state the number of Shares with respect to which the Option is being exercised and shall contain any representation required by the Plan or the Option Agreement.  Payment of the exercise price for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check; or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for at least six months (if required to avoid negative accounting treatment) having a Fair Market Value equal as of the date of the exercise to the aggregate cash exercise price for the number of Shares as to which the Option is being exercised; or (c) at the discretion of the Administrator, by having the Company retain from the Shares otherwise issuable upon exercise of the Option, a number of Shares having a Fair Market Value equal as of the date of exercise to the aggregate exercise price for the number of Shares as to which the Option is being exercised; or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established with a securities brokerage firm, and approved by the Administrator; or (e) at the discretion of the Administrator, by any combination of (a), (b), (c) and (d) above or (f) at the discretion of the Administrator, by payment of such other lawful consideration as the Administrator may determine.  Notwithstanding the foregoing, the Administrator shall accept only such payment on exercise of an ISO as is permitted by Section 422 of the Code.
The Company shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s Survivors, as the case may be).  In determining what constitutes “reasonably promptly,” it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect to the Shares prior to their issuance.  The Shares shall, upon delivery, be fully paid, non-assessable Shares.
		11.	PAYMENT IN CONNECTION WITH THE ISSUANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

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

Exhibit 10.1

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

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

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

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

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

		(iii)	The provisions of this Paragraph, and not the provisions of Paragraph 16 or 17, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of employment, director status or consultancy; provided, however, in the case of a Participant’s Disability or death within three months after the termination of employment, director status or consultancy, the Participant or the Participant’s Survivors may exercise 

Exhibit 10.1

			the Option within one year after the date of the Participant’s termination of service, but in no event after the date of expiration of the term of the Option.

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

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

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

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

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

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

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

Except as otherwise provided in a Participant’s Option Agreement:
		(i)	A Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of Disability may exercise any Option granted to such Participant to the extent that the Option has become exercisable but has not been exercised on the date of the Participant’s termination of service due to Disability;

		(ii)	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of the Participant’s termination of service due to Disability of any additional vesting rights that would have accrued on the next vesting date had the 

Exhibit 10.1

			Participant not become Disabled.  The proration shall be based upon the number of days accrued in the current vesting period prior to the date of the Participant’s termination of service due to Disability;

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

		(iv)	The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination).

If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.
		17.	EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

Except as otherwise provided in a Participant’s Option Agreement:
		(i)	In the event of the death of a Participant while the Participant is an Employee, director or Consultant of the Company or of an Affiliate, such Option may be exercised by the Participant’s Survivors to the extent that the Option has become exercisable but has not been exercised on the date of death;

		(ii)	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of death of any additional vesting rights that would have accrued on the next vesting date had the Participant not died.  The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s date of death; and

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

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

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

Exhibit 10.1

In addition, for purposes of this Paragraph 18 and Paragraph 19 below, any change of employment or other service within or among the Company and any Affiliates shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be an Employee, director or Consultant of the Company or any Affiliate.
		19.	EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE, DEATH OR DISABILITY.

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

Except as otherwise provided in a Participant’s Agreement, the following rules apply if the Participant’s service (whether as an Employee, director or Consultant) with the Company or an Affiliate is terminated for Cause:
		(i)	All Shares subject to any Stock Grant or Stock-Based Award that remain subject to forfeiture provisions or as to which the Company shall have a repurchase right shall be immediately forfeited to the Company as of the time the Participant is notified his or her service is terminated for Cause.

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

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

Except as otherwise provided in a Participant’s Agreement, the following rules apply if a Participant ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of Disability: to the extent the forfeiture provisions or the Company’s rights of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided, however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant or Stock-Based Award through the date of Disability as would have lapsed had the Participant not become Disabled.  The proration shall be based upon the number of days accrued prior to the date of Disability.
The Administrator shall make the determination both as to whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination).  If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.

Exhibit 10.1

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

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

Unless the offering and sale of the Shares shall have been effectively registered under the Securities Act, the Company shall be under no obligation to issue Shares under the Plan unless and until the following conditions have been fulfilled:
		(i)	The person who receives a Stock Right shall warrant to the Company, prior to the receipt of Shares, that such person is acquiring such Shares for his or her own account, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person acquiring such Shares shall be bound by the provisions of the following legend (or a legend in substantially similar form) which shall be endorsed upon the certificate evidencing the Shares issued pursuant to such exercise or such grant of a Stock Right:

“The shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws.”
		(ii)	At the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued in compliance with the Securities Act without registration thereunder.

		24.	DISSOLUTION OR LIQUIDATION OF THE COMPANY.

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

Exhibit 10.1

		25.	ADJUSTMENTS.

Upon the occurrence of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement.
(a)Stock Dividends and Stock Splits.  If (i) the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or (ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such shares of Common Stock, each Stock Right and the number of shares of Common Stock deliverable thereunder shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be made including, in the exercise, base or purchase price per share and in the Performance Goals applicable to outstanding Performance Based Awards to reflect such events.  The number of Shares subject to the limitations in Paragraph 3(a) and 4(c) shall also be proportionately adjusted upon the occurrence of such events.
(b)Corporate Transactions. If the Company is to be consolidated with or acquired by another entity in a Corporate Transaction, the Administrator or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”), shall, as to outstanding Options, either: (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that such Options must be exercised (either (A) to the extent then exercisable or (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end of which period such Options which have not been exercised shall terminate; or (iii) terminate such Options in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the number of shares of Common Stock into which such Option would have been exercisable (either (A) to the extent then exercisable or, (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this Subparagraph) less the aggregate exercise price thereof.  For purposes of determining the payments to be made pursuant to Subclause (iii) above, in the case of a Corporate Transaction the consideration for which, in whole or in part, is other than cash, the consideration other than cash shall be valued at the fair value thereof as determined in good faith by the Board of Directors.
With respect to outstanding Stock Grants, the Administrator or the Successor Board, shall make appropriate provision for the continuation of such Stock Grants on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either the consideration payable with respect to the outstanding Shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity.  In lieu of the foregoing, in connection with any Corporate Transaction, the Administrator may provide that, upon consummation of the Corporate Transaction, each outstanding Stock Grant shall be terminated in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the number of shares of Common Stock comprising such Stock Grant (to the extent such Stock Grant is no longer subject to any forfeiture or repurchase rights then in effect or, at the discretion of the Administrator, all forfeiture and repurchase rights being waived upon such Corporate Transaction).
In taking any of the actions permitted under this Paragraph 25(b), the Administrator shall not be obligated by the Plan to treat all Stock Rights, all Stock Rights held by a Participant, or all Stock Rights of the same type, identically.
(c)Recapitalization or Reorganization.  In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, a Participant upon exercising an Option or accepting a Stock Grant

Exhibit 10.1

after the recapitalization or reorganization shall be entitled to receive for the price paid upon such exercise or acceptance if any, the number of replacement securities which would have been received if such Option had been exercised or Stock Grant accepted prior to such recapitalization or reorganization.
(d)Adjustments to Stock-Based Awards.  Upon the happening of any of the events described in Subparagraphs (a), (b) or (c) above, any outstanding Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs.  The Administrator or the Successor Board shall determine the specific adjustments to be made under this Paragraph 25, including, but not limited to the effect of any, Corporate Transaction and Change in Control and, subject to Paragraph 4, its determination shall be conclusive.
(e)Modification of Options.  Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph (a), (b) or (c) above with respect to Options shall be made only after the Administrator determines whether such adjustments would (i) constitute a “modification” of any ISOs (as that term is defined in Section 424(h) of the Code) or (ii) cause any adverse tax consequences for the holders of Options, including, but not limited to, pursuant to Section 409A of the Code.  If the Administrator determines that such adjustments made with respect to Options would constitute a modification or other adverse tax consequence, it may refrain from making such adjustments, unless the holder of an Option specifically agrees in writing that such adjustment be made and such writing indicates that the holder has full knowledge of the consequences of such “modification” on his or her income tax treatment with respect to the Option.  This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion of the ISO to violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).
		26.	ISSUANCES OF SECURITIES.

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

No fractional shares shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such fractional shares equal to the Fair Market Value thereof.
		28.	CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs

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

In the event that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”) withholdings or other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s salary, wages or other remuneration in connection with the issuance of a Stock Right or Shares under the Plan or for any other reason required by law, the Company may withhold from the Participant’s 

Exhibit 10.1

compensation, if any, or may require that the Participant advance in cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount of such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock or a promissory note, is authorized by the Administrator (and permitted by law).  For purposes hereof, the fair market value of the shares withheld for purposes of payroll withholding shall be determined in the manner set forth under the definition of Fair Market Value provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise.  If the Fair Market Value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance the difference in cash to the Company or the Affiliate employer.  The Administrator in its discretion may condition the exercise of an Option for less than the then Fair Market Value on the Participant’s payment of such additional withholding.
		30.	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

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

The Plan will terminate on November 6, 2030, the date which is ten years from the earlier of the date of its adoption by the Board of Directors and the date of its approval by the shareholders of the Company.  The Plan may be terminated at an earlier date by vote of the shareholders or the Board of Directors of the Company; provided, however, that any such earlier termination shall not affect any Agreements executed prior to the effective date of such termination.  Termination of the Plan shall not affect any Stock Rights theretofore granted.
		32.	AMENDMENT OF THE PLAN AND AGREEMENTS.

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

Exhibit 10.1

		33.	EMPLOYMENT OR OTHER RELATIONSHIP.

Nothing in this Plan or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any period of time.
		34.	SECTION 409A.

If a Participant is a “specified employee” as defined in Section 409A of the Code (and as applied according to procedures of the Company and its Affiliates) as of his separation from service, to the extent any payment under this Plan or pursuant to the grant of a Stock-Based Award constitutes deferred compensation (after taking into account any applicable exemptions from Section 409A of the Code), and to the extent required by Section 409A of the Code, no payments due under this Plan or pursuant to a Stock-Based Award may be made until the earlier of: (i) the first day of the seventh month following the Participant’s separation from service, or (ii) the Participant’s date of death; provided, however, that any payments delayed during this six-month period shall be paid in the aggregate in a lump sum, without interest, on the first day of the seventh month following the Participant’s separation from service.
The Administrator shall administer the Plan with a view toward ensuring that Stock Rights under the Plan that are subject to Section 409A of the Code comply with the requirements thereof and that Options under the Plan be exempt from the requirements of Section 409A of the Code, but neither the Administrator nor any member of the Board of Directors, nor the Company nor any of its Affiliates, nor any other person acting hereunder on behalf of the Company, the Administrator or the Board of Directors shall be liable to a Participant or any Survivor by reason of the acceleration of any income, or the imposition of any additional tax or penalty, with respect to a Stock Right, whether by reason of a failure to satisfy the requirements of Section 409A of the Code or otherwise
		35.	INDEMNITY.

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

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

This Plan shall be construed and enforced in accordance with the law of the State of Delaware.
104757795v.5​

Approved by Brooks Automation, Inc. stockholders on January 26, 2021

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