Document:

TEXTED
MARKED BY [***] HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND WAS FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION

 

Exhibit
10.1

 

EXECUTION
VERSION

 

COLLABORATION
AGREEMENT

FOR AN INVESTIGATOR-INITIATED CLINICAL TRIAL

 

In
Madrid, July 31, 2019 (“Effective Date”)

 

GATHERED

 

On
the one hand, Grupo Español de Investigación en Sarcomas (GEIS) with tax identification number G81890212,
and address at C/ Diego de Leon 47, 28006 Madrid, Spain (hereinafter the “Sponsor”) represented in this act
by Dr. Claudia Valverde Morales, in her capacity as President.

 

On
the other hand, Lixte Biotechnology Holdings, Inc. with address at 248 Route 25A No. 2 East Setauket, New York 11733, United
States (hereinafter “LIXTE”), represented in this act by John S. Kovach, M.D. in his capacity as Chief Executive
Officer.

 

MANIFEST

 

I.
Whereas, the Sponsor is a non-profit clinical research association dedicated to improving the expectations of sarcoma patients,
with special interest and experience in conducting clinical trials in soft tissue sarcomas.

 

II.
Whereas, LIXTE is a clinical-stage public pharmaceutical company dedicated to discovering drugs for more effective treatments
for cancer.

 

III.
Whereas, the Sponsor intends to carry out the clinical trial entitled “Randomized phase I/II trial of LB-100 plus doxorubicin
vs. doxorubicin alone in first line of advanced soft tissue sarcoma” (hereinafter the “Trial”) in
accordance with the trial protocol summarized in Appendix 5 (hereinafter the “Protocol”).

 

IV.
Whereas, the Sponsor has asked LIXTE for financial collaboration and the supply of samples of LIXTE’S proprietary LB-100
drug (the “Trial Drug”) in order to conduct the Trial.

 

V.
Whereas, LIXTE, being interested in obtaining information about the efficacy and safety of LB-100 in soft tissue sarcomas, has
agreed to collaborate with the Sponsor for the development of the Trial under the conditions detailed in this agreement (the “Agreement”)
..

 

By
virtue of this, the parties, stating sufficient legal capacity, agree to formalize this Agreement in accordance with the following·

 

I.

Purpose

 

1.1
The purpose of this Agreement is to establish the terms and conditions under which LIXTE will collaborate with the Sponsor in
the conduct of the Trial , through financial contribution and the supply of a number of samples of the Trial Drug that are necessary
to achieve the

 

    	 

    	 

    

 

II.

Coordinating Investigator, Participating Sites, and

Project Participants

 

2.1
The Sponsor states that Dr. Javier Martin Broto shall perform the functions of coordinating investigator responsible for the practical
execution of the Trial (“Coordinating Investigator”), and that he is professionally qualified to lead the Trial.

 

2.2
The Sponsor represents and warrants that the rest of the participating centers where the Trial is to take place (collectively,
the “Participating Sites”) have the necessary professional qualifications and experience for conduct of the
Trial, and that they will carry out the Trial in accordance with the obligations established in this Agreement.

 

2.3
In the event of an absence of thirty (30) days or cessation of participation in the Trial by the aforementioned Coordinating Investigator,
the Sponsor must notify LIXTE as soon as possible and make best efforts to replace him with another person of similar qualification.
Sponsor will provide thirty (30) days’ notice to LIXTE, whenever practical, of any change of Coordinating Investigator.
LIXTE will have the right to review the qualifications of any Coordinating Investigator replacement and raise any reasonable concerns
which LIXTE may have in that regard and, both parties shall seek in good faith to address such concerns.

 

2.4
Before commencing the Trial, the Sponsor shall have obtained written agreements with the Participating Sites governing conduct
of the Trial, which shall contain terms expressing the same commitments assumed by the Sponsor in this Agreement.

 

2.5
The Sponsor and Coordinating Investigator shall require that all employees, consultants and agents of the Sponsor, the Coordinating
Investigator and the Participating Sites who are assigned to perform services under this Agreement (“Project Participants”)
are made aware of the obligations contained in-this Agreement and are bound by such obligations. In performing the services under
this Agreement, the Sponsor and Coordinating Investigator will reasonably allocate personnel with the necessary licenses, qualifications
and experience to conduct the Trial in accordance with the Protocol. In particular, Sponsor and the Coordinating Investigator
shall ensure that all Project Participants are trained in ICH Harmonised Tripartite Guideline For Good Clinical Practice E6(Rl)
Current Step 4 version dated 10 June 1996 (including the Post Step 4 corrections) (“GCP”). LIXTE will have
the right, before executing this Agreement, to review the qualifications of any key personnel, including Project Participants
whose participation in the Trial is expected for the duration of the Trial, and raise any concerns which LIXTE may have in that
regard. In the event that LIXTE has concerns regarding the performance of any Project Participant, the parties shall in good faith
seek to resolve such concerns. Sponsor will provide thirty (30) days’ notice to LIXTE, whenever practical, of any changes
to the Project Participants. Sponsor will provide project-specific training to replacement Project Participants at its own expense.
LIXTE will have the right to review the qualifications of any Project Participant replacements and raise any reasonable concerns
which LIXTE may have in that regard and, both parties shall seek in good faith to address such concerns.

 

2.6
The Sponsor and Coordinating Investigator will ensure that Sponsor, its trustees, officers and directors, Coordinating Investigator,
Participating Sites, Project Participants and any sub-contractors: (i) are under no contractual or other obligation or restriction
that is inconsistent with the Sponsor and Coordinating Investigator’s performance of or obligations under this Agreement
; (ii) do not have a financial or other interest in LIXTE or the outcome of the Trial that might interfere with their independent
judgment; (iii) have not been and are not under consideration to be (1) debarred from providing services; (2) excluded, debarred
or suspended from, or otherwise ineligible to participate in any national or state health care programs; (3) disqualified by any
government or regulatory agencies from performing specific services, and are not subject to a pending disqualification proceeding;
or (4) convicted of a criminal offense related to the provision of health care items or services, or under investigation or subject
to any such action that is pending.

 

    	 	2	 

    	 

    

 

2.7
Neither the Coordinating Investigator, Sponsor, nor any Participating Site may subcontract the performance of any of its/his/her
activities under this Agreement to a third party without LIXTE’s prior written consent. In the event that LIXTE consents
to such subcontracting, Sponsor agrees that (a) such third parties shall perform such activities in a manner consistent with the
terms and conditions of this Agreement, and (b) Sponsor remains liable for such third parties’ performance.

 

2.8
The Sponsor shall ensure that all clinical data, trial data, documentation, correspondence, and other information, data, and findings
and results generated in the conduct of the Trial (“Trial Data”) shall be recorded in a timely, accurate, complete
and legible manner. The Sponsor will take all reasonable and customary precautions, including periodic backup of computer files,
to prevent the loss or alteration of such Trial Data. In the event that LIXTE is required to use any Sponsor information systems
and associated processes in order to obtain access to any Trial Data, Sponsor will provide to LIXTE access rights, at no additional
charge, to such systems as is necessary for LIXTE to obtain access to such Trial Data. Such Sponsor systems will be accessible
by LIXTE during, at minimum, normal business hours, and the Sponsor will promptly correct any unavailability of, or defect or
inadequacy in, such systems to the extent they affect LIXTE’s ability to access such Trial Data. In no event will Sponsor
use or disclose, or permit any third party to use or disclose, the Trial Data for any commercial purpose or to any commercial
entity.

 

2.9
The Sponsor and Coordinating Investigator will collect, retain and/or use blood, fluid and/or tissue samples collected from subjects
of the Trial as may be set forth in the Protocol, and tangible materials directly or indirectly derived from such samples (collectively,
“Biological Samples”) solely as set forth in the Protocol.

 

III.

Compliance with Regulations

 

3.1
The Sponsor represents and warrants that it is aware of the laws and regulations applicable to clinical trials of medicinal products
for human use and declares that it will comply with, and will cause the Coordinating Investigator and the Participating Sites
to comply with, all regulations and guidelines applicable to the Trial, including but not limited to the Declaration of Helsinki
of the World Medical Association and the ICH Harmonised Tripartite Guideline For Good Clinical Practice E6(Rl) Current Step 4
version dated 10 June 1996 (including the Post Step 4 corrections) as applied to the monitoring and/or management of clinical
trials.

 

3.2
The Sponsor will (i) notify LIXTE of any communications from or to any regulatory authority having an impact on the Trial; (ii)
include LIXTE in any discussions or meetings with a regulatory authority regarding the Trial where appropriate; (iii) supply LIXTE
with a copy of any correspondence from a regulatory authority regarding the Trial, including any approval letter, and any other
Trial related correspondence; and (iv) allow LIXTE a reasonable opportunity to comment on any correspondence being sent to the
regulatory authority by Sponsor regarding the Trial, including any submitted annual reports.

 

IV.

Sponsor and Coordinating Investigator Responsibilities

 

4.1
Authorizations.

 

(a)
The Sponsor is responsible for obtaining and maintaining in force the authorizations required to carry out the Trial, and in particular
and prior to the start of the Trial: (a) the favorable opinion of the appropriate ethics committee (“Ethics Committee”),
(b) the authorization of the Spanish Agency of Medicines and Medical Devices (“AEMPS”).

 

(b)
The Sponsor. shall keep LIXTE informed at all times in relation to the process of obtaining reports and authorizations and/or
subsequent incidents that may affect the validity or permissibility of the Trial under applicable law (including those that may
affect the Participating Sites), as well as the progress _of the Trial.

 

    	 	3	 

    	 

    

 

(c)
At LIXTE’s request, the Sponsor shall provide to LIXTE a copy of the AEMPS authorization and the Ethics Committee’s
approval. The Sponsor shall not make any substantial modification to the Protocol without prior authorization from LIXTE.

 

(d)
The Sponsor is responsible for making all necessary arrangements and obtaining all required authorizations for the import and
use of the Trial Drug in the. European Union. LIXTE will make reasonable efforts to furnish documentation relating to the Tri!.
al Drug required for Sponsor to make such arrangements and obtain such authorizations.

 

4.2
Regulatory Framework. The Sponsor and the Coordinating Investigator will conduct the Trial (and ensure that the Participating
Sites conduct the Trial) in accordance with:

 

(a)
The Protocol;

 

(b)
The regulatory authorization legally required for the conduct of the Trial provided by the AEMPS of Spain;

 

(c)
The conditions established by the Ethics Committee; and

 

(d)
The anti-corruption clauses contained in Appendix 4 to this Agreement.

 

4.3
Trial Insurance. The Sponsor represents and warrants it will obtain liability insurance adequate to cover the damages that
may result from the Trial for the subjects on whom it is to be performed, and that such liability insurance will be adequate to
cover damages that may result from the execution of the responsibilities of the Sponsor, the Coordinating Investigator, the Participating
Sites, the Project Participants, and any sub-contractors. The Sponsor will provide written evidence of such insurance to LIXTE
upon request.

 

4.4
Information Communication and Publication of Results.

 

(a)
The Sponsor shall keep LIXTE informed of the progress of the Trial, and shall provide any information that LIXTE may request for
this purpose. In any case, the Sponsor will send to LIXTE all the results of the Trial (intermediate and final) (including the
Trial Data), during the sixty (60) days following the date on which such results become available.

 

(b)
The Sponsor will not communicate to any laboratory or other commercial organization the data of the Trial, other than LIXTE.

 

(c)
The Sponsor shall make public the results of the Trial via a written report within one ye r of the end of the Trial. Prior to
publication, the Sponsor will send a draft of the report to LIXTE. Within thirty (30) days of receipt of the report, LIXTE shall
provide any comments and/or raise any reasonable concerns LIXTE may have with the report, and both parties shall seek in good
faith to address such comments and concerns. If LIXTE determines that Confidential Information or a LIXTE Invention is contained
in the report, the Sponsor and Coordinating Investigator shall defer publication or disclosure for up to an additional sixty (60)
days from the time LIXTE notifies the Sponsor or Coordinating Investigator that LIXTE desires patent application(s) to be filed
on the LIXTE Invention. Sponsor shall include in the report a reference to LIXTE’s participation as a “collaborator”
(in the section “acknowledgements” or similar).

 

    	 	4	 

    	 

    

 

(d)
Notwithstanding the above, the Sponsor will not use the name and/or logos of LIXTE in any advertising, press releases, announcements,
communications, or for any promotional purpose, without the prior written consent of LIXTE.

 

(e)
The Sponsor shall register the Trial, at its inception, on the web site www.clinicaltrials.gov, and on other national and international
clinical study databases as required.

 

(f)
LIXTE will be legitimated to make public the Trial results through· a summary of them in the registry of clinical trials
in the LIXTE web site. In addition, LIXTE will be entitled to make public, at the beginning of the Trial, a summary of the protocol
in the clinical trial registry on the LIXTE website.

 

4.5
Inspections and Audits.

 

(a)
The parties agree that LIXTE, or others designated by LIXTE may, at mutually agreeable times and with prior written notice, during
normal business hours, arrange with the Sponsor, Coordinating Investigator or their respective designee:

 

(i)
to examine and inspect qualifications of the Project Participants and Participating Sites required for performance of the Trial
according to GCP; and

 

(ii)
to inspect and make copies of all data and supporting Trial documentation to confirm that the Trial is being conducted in conformance
with the Protocol and this Agreement, and in compliance with all applicable legal and regulatory requirements.

 

(b)
LIXTE agrees that all inspections and audits will be conducted in accordance with the policies and procedures regarding access
to the information systems of the Sponsor or Participating Site, as applicable.

 

V.

Drug Supply

 

5.1
LIXTE undertakes to collaborate with the Sponsor by providing the Trial Drug as described in Appendix 2.

 

5.2
No Trial Drug samples will be delivered to Participating Sites until the Sponsor has obtained the necessary authorizations from
the AEMPS and the corresponding Ethics Committee. The Sponsor shall be responsible for the management, handling, custody, including,
if applicable, destruction, of the Trial Drug in accordance with current legislation, the Protocol and this Agreement.

 

5.3
The dispensation of the Trial Drug to the subjects of the Trial will be carried out according to the description of the treatment
that appears in the Protocol. Any reformulation or modification in the composition of the Trial Drug is prohibited.

 

5.4
‘The Sponsor, Coordinating Investigator and Participating Sites shall use the Trial Drug exclusively for the purpose stipulated
in the Protocol and in accordance with the applicable regulations. Unless expressly authorized by LIXTE, the Sponsor shall not
make the Trial Drug and/or any related information provided by LIXTE available to any third party, except to the Coordinating
Investigator and Participating Sites.

 

    	 	5	 

    	 

    

 

5.5
The Sponsor shall at all times maintain, and shall cause the Coordinating Investigator and Participating Sites to maintain, an
updated record of the number and date of dispensation of the Trial Drug samples to each subject of the Trial.

 

5.6
At the end of the Trial or upon termination of this Agreement, whichever is earlier, the Sponsor will cause the Coordinating Investigator
to provide to LIXTE a written account of the quantities of the Trial Drug used in the Trial and will, at LIXTE’s election
(i) return to LIXTE any and all remaining stock of the Trial Drug or (ii) destroy any remaining stock of the Trial Drug, following
the requirements established by applicable legislation.

 

5.7
Any incidents related. to the delivery of the Trial Drug (e.g. damaged goods, quantity, etc.) should be reported by the Sponsor
to LIXTE within fourteen (14) days of delivery.

 

VI.

Financial Compensation

 

6.1
In consideration for the performance of the Trial, LIXTE undertakes to collaborate financially with the Sponsor in carrying out
the Trial by means of a maximum contribution of ***.

 

6.2
Payments will be made by bank transfer according to the schedule of milestones established in Appendix 1. The parties may modify
the schedule of Appendix 1 via a writing signed by each party’s authorized representative.

 

6.3
The parties acknowledge that the amount to be paid by LIXTE hereunder is reasonable compensation for the work to be performed
during conduct of the Trial and that neither Sponsor, any Participating Site, nor Coordinating Investigator has received any other
compensation or other inducement in connection with this Agreement or its participation in the Trial

 

6.4
In the event that the number of patients recruited for the Trial is less than the number set forth in the Protocol, the parties
shall meet and confer to discuss in good faith reduction in the payments due from LIXTE pursuant to Appendix 1, taking into account
the reduction in expenses of conducting the Trial resulting from the lower number of patients.

 

6.5
Within thirty (30) days of the occurrence of each milestone set forth in Appendix 1, Sponsor will issue an invoice to LIXTE for
the corresponding payment amount. The Sponsor will include in its invoices the protocol number and title of the Trial and will
send each invoice pursuant to the notification provisions of Section 14.1. LIXTE shall pay each invoice by bank transfer within
thirty (30) days after receipt of such invoice.

 

6.6
All payments by LIXTE shall be made directly to Sponsor, and not to any Participating Site or the Coordinating Investigator. Sponsor
shall be responsible for any payments required to be made to Participating Sites or the Coordinating Investigator.

 

VII.

Exclusion of Liability and Indemnity

 

7.1
The Sponsor is the exclusive institution responsible for the Trial and LIXTE’s participation is only as a collaborator via
the contributions described in Sections Five and Six. In all its relations with third parties, including the subjects of the Trial,
the Sponsor will not make statements that may indicate or suggest that LIXTE’s role in the Tri.al is different.

 

7.2
LIXTE assumes no liability to the Sponsor, Coordinating Investigator, Participating Sites, Project Participants and/or any third
party for any losses, damages, costs; claims, suits and expenses, including the cost and expense of handling and defending such
claims, proceedings, investigations and suits arising from the conduct of the Trial. Sponsor exonerates and will indemnify LIXTE
from any liability in this regard pursuant to Section 7.3.

 

    	 	6	 

    	 

    

 

7.3
Sponsor shall indemnify and hold harmless LIXTE and its affiliates and their respective officers, directors, employees and agents
(the “LIXTE Indemnitees”) from and against any losses, damages, costs, claims, suits and expenses, including
the cost and expense of handling and defending such claims, proceedings, investigations and suits, arising from a third party
claim against any LIXTE Indemnitee to the extent attributable to (i) a material breach of this Agreement by Sponsor, or (ii) the
gross negligence, malpractice or wrongful acts of the Coordinating Investigator or participants in the project at any Participating
Site; as applicable. In connection with such indemnity, LIXTE agrees: (1) to promptly notify Sponsor of any such claim or suit
(provided, however, that Sponsor shall not be released from its obligations under this Section 7.3 if the failure to promptly
notify Sponsor does not materially prejudice the defense of such claim, proceeding, investigation or suit); (2) to cooperate fully
with Sponsor in defending against such claim or suit; and (3) in the event of suit, to attend hearings and trials and assist in
securing and giving evidence, and to use reasonable efforts to obtain the attendance of necessary and proper witnesses. Sponsor
shall reimburse LIXTE for all reasonable expenses incurred at Sponsor’s request in connection with items (ii) and (iii)
above. Sponsor shall have the right to settle any such claim, proceeding, investigation or suit at the Sponsor’s sole expense
provided that any settlement will not include an admission of liability, wrongdoing or negligence of the LIXTE Indemnitees or
incur a financial obligation on behalf of a LIXTE Indemnitee, without their prior written consent. Sponsor shall pay for separate
counsel to the extent representation of the LIXTE Indemnitee(s) and Sponsor by the same counsel is a conflict of interest for
such counsel.

 

VIII.

Protection of Personal Data and Informed Consent

 

8.1
The treatment of the personal data of the subjects participating in the Trial will be in accordance with the General Data Protection
Regulation (EU) 2016/679 (GDPR), as well as Law 41/2002 of Spain, which regulates the autonomy of the patient, and other applicable
laws on data protection and patient autonomy. The Sponsor will comply with and ensure that the Coordinating Investigator and Participating
Sites comply with all the requirements established by such regulations.

 

8.2
All the information or data concerning Trial that are sent by the Sponsor and/or the Coordinating Investigator to LIXTE will be
sent in an anonymized, de-identified format, so that LIXTE does not have, in any case, access to the personal data of Trial patients.

 

8.3
The Sponsor undertakes to ensure that all Participating Sites obtain the informed consent of the subjects included in the Trial,
such informed consent to include, without limitation, an adequate description of the Trial, its risks, possible alternatives and
each subject’s rights and responsibilities.

 

IX.

Industrial and Intellectual Property Rights

 

9.1
The signature of this Agreement shall not affect the ownership of industrial and intellectual property rights of which the parties
were the holders before signing it, nor imply the granting of any rights except as expressly stipulated in this document.

 

    	 	7	 

    	 

    

 

9.2
All inventions, discoveries, developments, technology and data resulting from the performance of this Agreement or the Trial,
or the use of the Trial Drug, whether patentable or not (“Inventions”), conceived, reduced to practice or made
by or on behalf of the Sponsor and/or Coordinating Investigator, solely or jointly with others, that use, relate to, or incorporate
the Trial Drug or LIXTE’s Confidential Information, or that involve identification or use of biomarkers related to the safety,
efficacy or use of the Trial Drug (“LIXTE Inventions”), shall be the sole and exclusive property of LIXTE,
shall promptly be disclosed in writing by the Sponsor and Coordinating Investigator only to LIXTE, and Sponsor and the Coordinating
Investigator hereby assign to LIXTE all rights, title and interests in and to such Inventions and all intellectual property rights
therein. LIXTE shall have the sole and exclusive right to obtain, at its option, patent protection in the United States and other
countries on any LIXTE Invention. LIXTE hereby grants to Sponsor a limited, non-exclusive, non-transferable and nonsublicenseable
license under such LIXTE Invention, solely for internal non-commercial, academic, research and patient care purposes. LIXTE shall
own all rights in the Trial Data, provided that LIXTE hereby grants to Sponsor a limited, non-exclusive, nontransferable and non-sublicenseable
license to use and disclose, as necessary, the Trial Data, solely for (i) internal non-commercial, academic, research and patient
care purposes and (ii) as required to fulfill its obligations under applicable law as the sponsor of the Trial, subject to Sections
4.4 and 11.

 

9.3
Other than the funding payments specified herein, LIXTE is not obligated to make any payments to Sponsor in consideration of the
licenses set forth herein.

 

9.4
All Inventions other than LIXTE Inventions shall be owned by Sponsor if invented solely by Sponsor and jointly owned by Sponsor
and LIXTE if jointly invented by Sponsor and LIXTE; provided, however, that Sponsor hereby grants to LIXTE a limited, non-exclusive,
non-transferable and non-sublicenseable license to use any such Inventions.

 

9.5
Sponsor shall require that all Project Participants and Participating Sites have assigned to Sponsor their rights to any invention,
discovery, development, technology and data resulting from their performance of this Agreement.

 

9.6
LIXTE will remain at all times the exclusive owner of the Trial Drug, including all its industrial, commercial, and marketing
rights.

 

X.

Drug Safety Monitoring

 

10.1
Sponsor shall make the clinical safety data notifications set forth in Appendix 3 to LIXTE within the time periods prescribed
in Appendix 3. In addition, the Sponsor shall notify LIXTE of any other clinical safety data obtained during the Trial within
thirty (30) days of such data becoming available, and at any time when requested by LIXTE.

 

10.2
In accordance with ICH GCP standards and applicable local regulations, the Sponsor is responsible for assessing all clinical safety
information obtained during the Trial in order to produce all necessary safety reports. These safety reports shall include, without
limitation, the prompt notification of individual cases of suspected serious and unexpected adverse reactions (SUSAR) and the
Development Safety Update Reports (DSURs). The Sponsor will be responsible for sending these reports to the competent health authorities,
to the relevant Ethics Committee and to the Coordinating Investigator and Project Participants, as appropriate, within the relevant
timeframes established by law.

 

10.3
In the event that LIXTE has its own Investigator’s Brochure (“IB”) for the Trial Drug, LIXTE will provide
the Sponsor throughout the Trial, for information purposes, both the IB and its updates and/or supplements.

 

10.4
In the event that LIXTE produces safety reports of the Trial Drug, LIXTE agrees, for the duration of the Trial, to send a copy
of each such safety report to Sponsor within thirty (30) days of such report’s completion.

 

10.5
In the event that LIXTE prepares periodic SUSAR notification reports to be sent to investigators for the Trial Drug, LIXTE agrees,
for the duration of the Trial, to send a copy of each such safety report to Sponsor within thirty (30) days of such report’s
completion.

 

    	 	8	 

    	 

    

 

10.6
LIXTE will ensure that any urgent safety issues relating to the Trial Drug are reported to the Sponsor by any means that LIXTE,
in its absolute discretion, considers approximate.

 

10.7
The Sponsor will notify LIXTE in advance of any review meetings of the Independent Data Monitoring Committee (“IDMC”),
or equivalent. The Sponsor shall provide LIXTE, within thirty (30) days following completion of such meeting, with the minutes
of the protocol meetings, and any recommendations or requests addressed to the Sponsor. The Sponsor shall communicate within forty-eight
(48) hours any urgent safety issues relating to the LIXTE investigational medicinal product(s) identified at these meetings.

 

10.8
The Sponsor will notify LIXTE within twenty-four (24) hours after learning of any serious adverse effect or drug reaction affecting
any subject in the Trial.

 

10.9
If a subject of the Trial is injured or becomes ill as a result of participating in the Trial, the Sponsor and/or Coordinating
Investigator will be solely responsible for providing, at their expense, the medical treatment necessary to diagnose and treat
such injury or illness.

 

XI.

Confidentiality

 

11.1
During the term of this Agreement, the parties may obtain certain Confidential Information, as hereinafter defined, from each
other or as a result of performing the Trial. “Confidential Information” shall mean all information provided
by LIXTE (including, but not limited to, information about the Trial Drug), as well as all the information obtained during the
development of the Trial and the personal data of the subjects recruited in the Trial.

 

11.2
Sponsor and Coordinating Investigator agree to, and agree to cause the Participating Sites to: (i) use the Confidential Information
only in connection with their performance of this Agreement, (ii) treat the Confidential Information as they would their own proprietary
and confidential information, and (iii) to take all reasonable precautions to prevent disclosure of the Confidential Information
to any third party, except for legal and financial counsel involved in the Trial.

 

11.3
The foregoing obligations of Section 11.2 shall not be mandatory with respect to information that (i) has been published by LIXTE
or is in the public domain for reasons other than non-compliance by the Sponsor, (ii) was previously accredited by evidence in
the Sponsor’s possession, (iii) is required by law or regulation to be disclosed; provided that the Sponsor shall notify
LIXTE of any proceedings or requests that could result in disclosure under this Section 11.3 in sufficient time to permit LIXTE
to take the appropriate measures to prevent such disclosures or (iv) is made available to the Sponsor or coordinating Investigator
for use or disclosure from any third party having a legal right to do so and who is not under any obligation to keep such information
confidential.

 

11.4
The Sponsor and the Coordinating Investigator agree to maintain, and agree to cause the Participating Sites to maintain, all Confidential
Information in the strictest confidence for a period of ten (10) years from the termination of this Agreement.

 

11.5
Upon LIXTE’s written request, the Sponsor shall, and shall cause the Coordinating Investigator and Participating Sites to,
promptly deliver to LIXTE or to destroy if so requested, as applicable, all originals, copies, and summaries of documents, materials,
and other tangible manifestations of Confidential Information belonging to LIXTE and any other property of LIXTE, as applicable,
in its possession or under its control, in whatever media; provided, however, that Sponsor or Coordinating Investigator shall
be entitled to retain in confidence under this Agreement, (i) one (1) archived copy of the Confidential Information, including
without limitation notes and memoranda, solely for the purpose of administering its obligations or exercising its rights under
this Agreement; and (ii) Confidential Information contained in its electronic back-up files that are created in the normal course
of business pursuant to its standard protocol for preserving its electronic records.

 

    	 	9	 

    	 

    

 

XII.

Duration

 

12.1
Except in the cases of early termination described below, this Agreement shall remain in force until the completion of the Trial
and the fulfillment of all the obligations contemplated therein.

 

12.2
The Trial is expected to be carried out in the following stages:

 

	 	●	Administrative
    start-up: 4 months
	 	 	 
	 	●	First
    subject visit (FSV): Q4 2019
	 	 	 
	 	●	Total
    recruitment period: 24 months
	 	 	 
	 	●	Treatment
    period: 6 months
	 	 	 
	 	●	Follow-up
    period: 6 months
	 	 	 
	 	●	Close-out:
    4 months
	 	 	 
	 	●	Estimated
    end of study: Q3 2022

 

XIII.

Early Termination of the Agreement

 

13.1
Termination for Breach. Either party may terminate this Agreement for any material breach by the other party if it: (i)
provides written notification of a material breach to the other party and (ii) the other party fails to cure such material breach
within thirty (30) days of receipt of such notification.

 

13.2
Termination by LIXTE. Without prejudice to LIXTE’s right to claim any damages, LIXTE shall be entitled to
terminate this Agreement at any time, without any requirement other than prior notice to Sponsor and without having to pay any
indemnity to the Sponsor for such early termination.

 

13.3
Termination for Health or Safety. Finally, either party may immediately terminate this Agreement if: (i) it believes that
immediate termination is necessary due to an evaluation of risks to the safety and/or health of the subjects involved in it or
(ii) it is informed that approval to conduct the Trial has been withdrawn by AEMPS or other applicable regulatory authority.

 

13.4
Effect of Termination. In the event of any termination:

 

(a)
The Sponsor shall cause the Coordinating Investigator to issue a report as to remaining amounts of the Trial Drug, and return
or destroy such remaining amounts of the Trial Drug pursuant to Section 5.6.

 

(b)
The Sponsor shall return to LIXTE the amount corresponding to those expenses that at the time of the suspension had not yet occurred.

 

(c)
The Sponsor shall return or destroy all Confidential Information or other property of Lixte pursuant to Section 11.5.

 

    	 	10	 

    	 

    

 

13.5
Survival of Provisions. Sections 2.8, 3.1, 4.3, 4.4, 4.5, 6.3, 7, 8, 9, 10, 11, .13, 14 and any other provision required
for the interpretation thereof shall survive termination of this Agreement.

 

XIV.

Miscellaneous

 

14.1
Notices. All communications related to this Agreement will be addressed in writing, in English, and (i) mailed posted repaid
by certified or registered mail, return receipt re-· quested, or (ii) personally delivered to the appropriate party via
electronic delivery or reputable overnight service with written verification of receipt, or (iii) emailed, in each case to the
appropriate addresses indicated below:

 

	Grupo
        Español de Investigación en Sarcomas

        C/
        Diego de León 47

        28006
        Madrid, Spain

        Email:
        secretaria@grupogeis.org
	Lixte
        Biotechnology Holdings, Inc.

        248
        Route 25A No. 2

        East
        Setauket, New York 11733, USA

        Email:
        [jkovach@lixte.com

 

Notices
shall be deemed to have been received at the earlier of receipt or five (5) days from the date of mailing (in the case of a letter).

 

14.2
Law and Jurisdiction. This Agreement and its appendices shall be governed by Spanish law. In order to resolve any discrepancy
that may occur in the application or interpretation of the provisions of this Agreement, the parties submit, expressly waiving
any jurisdiction that may correspond to them, to the jurisdiction of the Courts of Madrid, Spain.

 

14.3
Compliance with Law. Any provisions of law that invalidate, or otherwise are inconsistent with, the terms of this Agreement,
or that would cause any of the parties to be in violation of the law, shall be deemed to supersede the terms of this Agreement;
provided, however, that the parties shall use their best efforts to amend this Agreement to accommodate any such changes that
most closely approximate the intent and economic effect of the invalid provision. In the event that this Agreement cannot be so
amended, this Agreement shall terminate, and the provisions of Section 13.4 shall apply.

 

14.4
Assignment. Neither party may assign this Agreement without the prior written consent of the other party, which consent
will not be unreasonably withheld; provided, however, that either party may assign this Agreement without consent to a successor-in-interest
to substantially all of the business of that party to which the subject matter of this Agreement relates upon delivery to the
other party of notice of such assignment, provided that the successor agrees to assume all responsibilities and obligations under
this Agreement. This Agreement, including the indemnification obligations under Section 7.3, shall be binding upon and inure to
the benefit of the ·parties hereto, their respective permitted successors, assigns, legal representatives and heirs.

 

14.5
Independent Contractors. For purposes of this Agreement, LIXTE shall not be deemed an agent, servant, partner, joint venturer
or employee of Sponsor. Thus it does not have the authority to take action on Sponsor’s behalf or to bind Sponsor without
Sponsor’s prior written consent. Lixte is acting in the capacity of an independent contractor of Sponsor.

 

14.6
No Waiver. Either party’s failure to require the other party to comply with any provision of this Agreement shall
not be deemed a waiver of such provision or any other provision of this Agreement.

 

14.7
Entire Agreement. This Agreement represents the entire understanding of the parties with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements between the parties, whether written or oral. Any modification,
amendment or supplement to this Agreement or Appendices attached hereto shall be in a writing signed by an authorized representative
of each party.

 

    	 	11	 

    	 

    

 

14.8
Severability. If any clause, section or paragraph of this Agreement is determined by a court of competent jurisdiction
to be illegal, invalid or unenforceable, it will be deemed severed from the remainder of this Agreement and will have no effect
on the legality, validity or enforceability of the remaining provisions of this Agreement. The parties shall negotiate in good
faith to replace any illegal, invalid or unenforceable provision with a legal, valid and enforceable one such that the objectives
contemplated by the parties when entering this Agreement may be realized.

 

14.9
Rules of Construction and Interpretation. Unless the context otherwise requires: (i) references in this Agreement to any
gender include references to all genders, and references to the singular include references to the plural and vice versa; (ii)
the words “include”, “includes” and “including” when used in this Agreement shall be deemed
to be followed by the phrase “without limitation”; (iii) references in this Agreement to Articles, Sections, Appendices
and Schedules shall be deemed references to Articles and Sections of, and Appendices and Schedules to, this Agreement, as applicable;
(iv) the words “hereof’, “hereby” and “herein” and words of similar meaning when used in this
Agreement refer to this Agreement in its entirety and not to any particular Article,. Section or provision of this Agreement;
(v) where either party’s “consent” or “approval” is required hereunder, except as otherwise specified
herein, such party’s consent or approval may be granted or withheld in such party’s sole discretion; (vi) the words
“shall,” “will,” or “agrees” are mandatory and “may” is permissive; (vii) the
word “or” is not exclusive; (viii) any definition or reference to any agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or therein);
(ix) all references to contracts, agreements, leases or other arrangements shall refer to oral as well as written matters; (x)
any reference to any laws herein shall be construed as referring to such laws as from time to time enacted, repealed or amended
and (xi) any reference herein to any person shall be construed to include the person’s successors and permitted assigns.

 

14.10
Representations and Warranties. Sponsor and LIXTE each represent and warrant that: (i) it is a corporation or other legal
entity duly incorporated or established, validly existing and in good standing, (ii) such party has the legal authority and right
to enter into this Agreement, (iii) it has taken all necessary actions on its part to authorize the execution, delivery and performance
of the obligations undertaken in this Agreement, and no other corporate actions are necessary with respect thereto, (iv) it has
no obligation to any other party which is in conflict with its obligations under this Agreement, and (v) it is duly licensed,
authorized or qualified to do business and is in good standing in every jurisdiction in which a license, authorization or qualification
is required for it to perform its obligations under this Agreement.

 

14.11
Further Assurances. Each party hereto agrees to duly execute and deliver, or cause to be duly executed and delivered such
further instruments and do and cause to be done such further acts and things, including without limitation, the filing of such
additional assignments, agreements, documents and instruments, that may be necessary or as the other party hereto may at any time
and from time to time reasonably request in connection with this Agreement or to carry out more effectively the provisions and
purposes hereof or to better assure and confirm unto such other party its rights and remedies under this Agreement.

 

14.12
Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original but all
of which shall constitute one and the same instrument. This Agreement may be executed electronically. Each counterpart shall be
considered an original whether or not such counterpart is executed electronically.

 

    	 	12	 

    	 

    

 

In
proof of conformity, the parties sign this Agreement in duplicate as of the Effective Date.

 

	Grupo
    Español de Investigación en Sarcomas	 	Lixte
    Biotechnology Holdings, Inc.
	 	 	 
	By:	 	 	By:	 
	Name:	Claudia
    Valverde Morales	 	Name:	John
    S. Kovach, M.D.
	Title:	President	 	Title:	President
    & CEO
	Date:	 	 	Date:	 

 

    	 	13	 

    	 

    

 

Appendix
1: Budget & Payment Schedule

 

Protocol
reviewed by FDA and delivery of required documentation/permits

 

	Payment
    No.	 	Total***	 	Milestone	 	Estimated
    Date
	1	 	 	 	Upon
    CTA signature	 	Q3
    2019
	2	 	 	 	Protocol
    reviewed by FDA and delivery of required documentation/permits for LB-100 import and use in the EU	 	Q3
    2019
	3	 	 	 	EC
    and RA approvals in Spain	 	Q4
    2019
	4	 	 	 	Phase
    1: First patient in	 	Q4
    2019
	5	 	 	 	Phase
    1: Final clinical report	 	Q2
    2020
	6	 	 	 	EC
    and RA approval in Country 2	 	Q1
    2020
	7	 	 	 	Phase
    2: First patient in	 	Q2
    2020
	8	 	 	 	Phase
    2: 20% of patients enrolled (30)	 	Q3
    2020
	9	 	 	 	Phase
    2: 40% of patients enrolled (60)	 	Q4
    2020
	10	 	 	 	Phase
    2: Interim analysis report	 	Q1
    2021
	11	 	 	 	Phase
    2: 60% of patients enrolled (90)	 	Q2
    2021
	12	 	 	 	Phase
    2: 80% of patients enrolled (120)	 	Q3
    2021
	13	 	 	 	Phase
    2: 100% of patients enrolled (150)	 	Q4
    2021
	14	 	 	 	Phase
    2: Final clinical report	 	Q1
    2022
	15	 	 	 	Phase
    2: First publication in congress	 	Q2
    2022
	16	 	 	 	Phase
    2: All sites closed-out	 	Q3
    2022
	17	 	 	 	Phase
    2: Manuscript published in journal	 	Q4
    2022

 

    	 	Appendix 1 - Page 1	 

    	 

    

 

Appendix
2: Drug Supply

 

Samples
provided for protocol:

 

“Randomized
phase I/II trial of LB-100 plus doxorubicin vs. doxorubicin alone in first line of advanced soft tissue sarcoma”

 

LIXTE
will provide the Sponsor with the samples described below for use in the Trial only.

 

	Name
    of the product:	 	LB-100
    for intravenous injection
	Product
    code:	 	 
	Item
    Code:	 	 
	Type
    of sample:	 	Glass
    vials each containing 10 mL of 1.0 mg/mL LB100
	Presentation/Content:	 	 
	Quantity:	 	 
	Technical
    storage conditions:	 	Frozen
    at minus 10° C to minus 25° C or lower
	Period
    of technical validity:	 	To
    March 30, 2020
	Packaging
    components:	 	Frozen
    vials
	Reference
    documents:	 	 

 

Reception
and Storage

 

Upon
receipt of the product, check that the seal is intact and contents are frozen. Ensure that the material is. stored in a -20°
C freezer or colder in accordance with Good Manufacturing Practice (GMP) or local regulations in force. If there is any sign of
deterioration, contact LIXTE immediately.

 

Postprocessing

 

Any
further processing must be carried out in accordance with GMP standards or local regulations in force.

 

The
Sponsor will be responsible for ensuring that the packaging/labeling complies with local regulations, product separation and appropriate
controls to prevent product mixing.

 

Subsequent
delivery, monitoring and other rearrangement activities will also be under the responsibility of the Trial Sponsor.

 

Notifications
and Complaints

 

If
during the Trial LIXTE becomes aware of any problem that may affect the quality of the samples, LIXTE will promptly notify the
Sponsor. The responsibility for claiming any investigational medication rests with the Sponsor, after consultation with LIXTE
and/or any other company that supplied the products.

 

The
Sponsor must notify LIXTE of protocol changes that may affect the use of the samples provided for the clinical trial.

 

Destruction

 

The
destruction will be performed by the Sponsor in accordance with Good Manufacturing Practice, Good Clinical Practice and national
legal requirements.

 

    	 	Appendix 2 - Page 1	 

    	 

    

 

Appendix
3: Notifications of Safety Data

 

Definition
of Adverse Event and Serious Adverse Event

 

For
the purposes of this Agreement, an adverse event .(AB) means any harmful incident to a clinical trial subject’s health,
whether or not causally related to the drugs (or other materials) used in the Trial, and a serious adverse event (SAE) means any
adverse event that results in death, life threatening, disabling or incapacitating, requiring hospitalization or prolongation
of hospitalization.

 

Serious
Adverse Events

 

The
Sponsor shall notify LIXTE and Theradex Oncology of all SAEs that occur during the Trial in subjects exposed to the LIXTE drug(s)
(in accordance with the protocol) by sending a copy of the original pages of the SAE forms, completed in English within 24 hours
of becoming aware of the event, regardless of the causal assessment established by the Sponsor/Investigator.

 

PDF’s
of SAE are emailed to:

 

	TBD

        TBD

        Theradex
        Oncology

        4365
        Route 1 South

        Suite
        101

        Princeton,
        NJ 08540 USA
	 	John
        S. Kovach

        jkovach@lixte.com

        Lixte
        Biotechnology

        248
        Rout 25A No. 2

        East
        Setauket, NY 11733 USA

 

Pregnancy
Notification

 

The
Sponsor will notify LIXTE of the pregnancy status of any patient who becomes pregnant while participating in the Trial and has
been exposed to a LIXTE medication under the Trial by sending copies of the original pregnancy notification form to LIXTE within
two weeks of becoming aware of the pregnancy. It will also follow up to determine the outcome of the pregnancy, including premature
pregnancy termination.

 

How
Safety Clinical Data Will Be Submitted to LIXTE

 

The
above notices and information, shall be communicated to LIXTE in English to the following address:

 

248
Route 25A No. 2

East
Setauket, New York 11733, United States

Attention:
CEO

 

Reporting
Period

 

AEs
that are subject to the above provisions are those that occur after the first dose of the LIXTE Trial drug(s) up to 28 days after
discontinuation of the LIXTE Trial drug(s).

 

Request
for Follow-Up Information

 

The
Sponsor will provide LIXTE with details of to whom LIXTE should address requests for followup information regarding the AEs cases
reported in this Trial, and undertakes to update these details as appropriate.

 

    	 	Appendix 3 - Page 1	 

    	 

    

 

Appendix
4: Anti-Corruption Clauses

 

These
anti-corruption clauses form part of the terms and conditions of the Agreement between the Sponsor and LIXTE. Any supply of product
and services to Veolia incorporates these terms by reference.

 

1.
In carrying out the Trial, the Sponsor hereby undertakes to strictly comply with applicable laws prohibiting the bribery of public
officials and private persons, ·influence peddling, money laundering that may in particular entail a public contract debarment.
The Sponsor undertakes to put in place and implement all necessary and reasonable policies and measures to prevent corruption.

 

2.
The Sponsor declares that to its knowledge, its legal representatives, directors, employees, agents, and anyone providing services
do not and will not directly or indirectly offer, give, agree to give, authorize, solicit, or accept the giving of money or anything
else of value or grant any advantage or gift to any person, company or undertaking whatsoever including any government official
or employee, political party official, candidate. for political office, person holding a legislative, administrative or judicial
position of any kind for or on behalf of any country, public agency or state owned company, official of a public international
organization, for the purpose of corruptly influencing such person in their official capacity, or for the purpose of rewarding
or inducing the improper performance of a relevant function or activity by any person in order to obtain or retain any business
or to gain any advantage in the conduct of business.

 

3.
The Sponsor further undertakes to ensure that neither the Sponsor nor any of its legal representatives, directors, employees,
agents, sub-contractors and anyone performing services under this Agreement has been, or is listed ·by any government agency
as being debarred, suspended, proposed for suspension or debarment.

 

4.
The·Sponsor agrees to notify any breach of any term of these clauses, to LIXTE within a reasonable time.

 

5.
If LIXTE notifies the Sponsor that it has reasonable grounds to believe that the Sponsor has breached any term of these clauses:

 

	(a)	LIXTE
    is entitled to suspend performance of this Agreement without notice for as long as LIXTE considers necessary to investigate
    the relevant conduct without incurring any liability or obligation to the Sponsor for such suspension;
	 	 
	(b)	The
    Sponsor is obliged to take all reasonable steps to prevent the loss or destruction of any evidence in relation to the relevant
    conduct.

 

    	 	Appendix 4 - Page 1	 

    	 

    

 

Appendix
5: Protocol Synopsis

 

CLINICAL
TRIAL SUMMARY

 

	Trial
    Title	 	Randomized
    phase I/II trial of LB-100 plus doxorubicin vs. doxorubicin alone in first line of advanced soft tissue sarcomas
	 	 	 
	Study
    Type	 	Phase
    I-II, two-arm, randomized, open-label, multicenter, international clinical trial
	 	 	 
	Sponsor	 	Grupo
        Español de Investigación en Sarcomas (GEIS)

        C/
        Diego de León, 47

        28006,
        Madrid, Spain

        www.grupogeis.org

	 	 	 
	CRO	 	Sofpromed
        Investigación Clinica, SLU

        C/
        del Ter, 27 - 2nd Floor - Office 8D

        07009
        Palma de Mallorca, Spain

        Tel:
        +34 648 414 261

        Fax:
        +34 971 570 222

        E-mail:
        ensayos@sofpromed.com

	 	 	 
	Study
    Indentifiers	 	Study
        Acronym:

        Sponsor
        Protocol Number: GEIS-74

        EudraCT
        Number: 2019-003034-16

	 	 	 
	Coordinating
    Investigators	 	Clinical
    Coordinating Investigator:

 

	 	 	●	Dr.
    Javier Martin - Hospital Universitario Virgen del Rocío (Seville)

 

	 	 	Translational
    Coordinating Investigator:

 

	 	 	●	Dr.
    David da Silva Moura - Hospital Universitario Virgen del Rocío (Seville)
	 	 	 	 
	Planned
    Calendar	 	●	Administrative
    start-up: 4 months
	 	 	 	 
	 	 	●	First
    subject first visit (FSFV): Q4 2019
	 	 	 	 
	 	 	●	Total
    recruitment period duration: 24 months
	 	 	 	 
	 	 	●	Treatment:
    6 months
	 	 	 	 
	 	 	●	Follow-up
    period: 6 months
	 	 	 	 
	 	 	●	Close-out:
    4 months
	 	 	 	 
	 	 	●	Estimated
    end of study date: Q3 2022

 

	Estimated
    Accrual Rate	 	6-7
    cases per month (at international level)

 

    	 	Appendix 5 - Page 1	 

    	 

    

 

	Clinical
    Study Objectives	 	PHASE
        I

         

        Primary
        clinical study objective

 

	 	 	●	To
    determine the maximum tolerated dose (MTD) of LB-100 in combination with doxorubicin (to be used as recommended dose for the
    phase II part).

 

	 	 	Secondary
    clinical study objectives

 

	 	 	●	To
    evaluate the safety profile according to CTCAE 4.03.
	 	 	 	 
	 	 	●	To
    assess the activity of this combination (ORR, median PFS, median OS)
	 	 	 	 
	 	 	●	To
    assess pharmacodynamic parameters in tumor tissue

 

	 	 	PHASE
        II

         

        Primary
        clinical study objective

 

	 	 	●	To
    comparatively evaluate the efficacy of the LB-100 plus doxorubicin combination vs. doxorubicin alone as measured by median
    progression-free survival (PFS) in patients with advanced soft tissue sarcomas.

 

	 	 	Secondary
    clinical study objectives

 

	 	 	●	To
    determine the objective response rate (ORR).
	 	 	 	 
	 	 	●	To
    evaluate overall survival (OS).
	 	 	 	 
	 	 	●	To
    evaluate the safety profile.
	 	 	 	 
	 	 	●	To
    evaluate quality of life.
	 	 	 	 
	 	 	●	To
    correlate translational parameters (biomarkers) with clinical outcome.

 

    	 	Appendix 5 - Page 2	 

    	 

    

 

	Analytical
    Endpoints	 	PHASE
        I

         

        Primary
        clinical study objective

 

	 	 	●	The
    MTD of LB- I 00 in combination with doxorubicin will be determined by assessing adverse events according to CTCAE 4.03 and
    they will be used as a rule for escalating or diminishing dose levels regarding the dose-limiting toxicities detailed in the
    protocol.

 

	 	 	Secondary
    clinic.al study objectives

 

	 	 	●	Safety
    profile of the trial treatments, through assessment of adverse event type, incidence, severity, time of appearance, related
    causes, as well as physical explorations and laboratory tests. Toxicity will be grad- ed and tabulated by using CTCAE 4.03.
	 	 	 	 
	 	 	●	Activity
    will be measured as ORR, median PFS and media OS.
	 	 	 	 
	 	 	●	Pharmacodynamic
    changes will be checked in order to analyze the impact of combination of these compounds in cell-cycle control and apoptosis
    signaling.

 

	 	 	PHASE
        II 

         

        Primary
        clinical study endpoint

 

	 	 	●	Progression-free
    survival (PFS): Efficacy measured by median PFS according to RECIST 1.1. PFS for each patient is defined as the time measured
    in months from registry to progression or to death due to any cause, whatever occurs first.

 

	 	 	Secondary
    clinical study endpoints

 

	 	 	●	Objective
    Response Rate (ORR): ORR is defined as the number of subjects with a Best Overall Response (BOR) of Complete Response (CR)
    or Partial Response (PR) divided by the number of response evaluable subjects (according to RECIST 1.1 criteria).
	 	 	 	 
	 	 	●	Overall
    survival (OS): OS is defined as the time between the date of first dose and the date of death due to any cause. OS will be
    censored on the last date a subject was known to be alive. Median of OS
	 	 	 	 
	 	 	●	Safety
    profile of the trial treatments, through assessment of adverse event type, incidence , severity, time of appearance, related
    causes, as well as physical explorations and laboratory tests. Toxicity will be graded and tabulated by using CTCAE 4.03.
	 	 	 	 
	 	 	●	Quality
    of life measured by QLQ-C30 EORTC questionnaire.

 

    	 	Appendix 5 - Page 3	 

    	 

    

 

	Population	 	Adult
        patients with confirmed diagnosis of advanced undifferentiated pleomorphic sarcoma, leiomyosarcoma, myxoid/and hypercellular
        myxoid liposarcoma, myxofibrosarcoma, NOS sarcoma, synovial sarcoma, fibrosarcoma and malignant peripheral nerve sheath
        tumors (MPNST).

         

	Number
    of Patients	 	Phase
        I: 9-18 patients

         

        Phase
        II: 150 patients

         

        Total
        study: 168 (including 14% of losses)

         

	Sample
    Size Calculation	 	An
        enrollment of 150 patients is planned (75 per arm), of whom at least 130 are expected to be considered eligible (including
        external pathological review), recruited during 24 months. A maximum of 14% patients is assumed not reaching progression
        or death during the study because of follow-up losses, protocol violations, and patient refusal or not having progressed
        at the time of the statistical analysis of study endpoints.

         

        The
primary endpoint, progression free survival (PFS) will be measured from the date of randomization until there is radiological
evidence of disease progression or death of any cause. The main analysis will be conducted when 102 events occur. Assuming a control
group median PFS of 4.5 months (HO) and an alternative mPFS of 7.5 months for the experimental arm (Hl ), this design will allow
for the demonstration of a statistically significant decrease in the relative risk of progression or death with a Hazard Ratio
of 0.72 in the experimental arm (alpha=0.05, beta=0.2).

 

    	 	Appendix 5 - Page 4	 

    	 

    

 

	Treatment	 	Phase
        I: Dose-finding stage

         

        A
        dose-finding stage is planned for an initial set of 9-18 patients (21-day cycles):

 

	 	 	●	Starting
    at Dose Level 1: LB-100 1.75 mg/m2/d dl-3 followed on day 1 by Doxorubicin 60 mg/m2 /d (d1 only)
	 	 	●	Dose
    Level 2: LB-100 1.75 mg/m2/d dl-3 followed on day 1 by Doxorubicin 75 mg/m2 /d (d1 only)
	 	 	●	Dose
    Level 3: LB-100 2.33 g/m2/d dl-3 followed on day 1 by Doxorubicin 75 mg/m2 /d (dl only)
	 	 	●	Dose
    Level -1: LB-100 1.25 mg/m2 /d d1-3 followed on day 1 by Doxorubicin 60 mg/m2 /d (dl only)
	 	 	●	(If
    Dose Level -1 needs to be tested, a new scalation dose level would be LB-100 1.25 mg/m2/d dl-3 followed on day
    1 by Doxorubicin 75 mg/m2/d (d1 only)

 

	 	 	After
6 cycles (in absence of progression or intolerance), LB-100 will be administered as maintenance phase, until disease progression
or intolerance, in cycles every 3 weeks.

         

        The
        procedure in the Phase I part is the classical 3+3 design. The dose escalation rules are as follows: escalating in cohorts
        of 3-6 patients per dose level. Three patients are treated at a given dose level. If at least 2 patients are observed
        to have dose-limiting toxicity (DLT), the prior dose level is defined as the maximum tolerable dosage (MTD) (unless only
        3 patients have been treated at that level, in which case it is the tentative MTD). If 0 of the 3 patients are observed
        to have DLT, the dose level is escalated one step for the next cohort of 3 patients, and the process continues as above.
        If exactly 1 of the 3 patients treated show DLT, 3 additional patients are treated at the current dose level. If none
        of these additional 3 patients show DLT, the dose level is escalated for the next cohort of 3 patients, and the process
        continues as above; otherwise, the prior dose level is defined as the MTD.

	 	 	 
	 	 	Phase
        II

         

        In
        the phase II part, the dose of doxorubicin in the control arm will be 75 mg/m2/d dl intravenously by 20 minute
        infusion every 3 weeks and in the experimental arm, doxorubicin, at recommended dose derived from phase I part, will be
        administered intravenously by 20 minute infusion after completion of the administration of LB-100 by 2-hour intravenous
        infusion at the recommended dose derived from phase I part. LB-100 is administered during each of the first 3 days of
        each cycle and doxorubicin is administered on day 1 only of each 3-week cycle.

         

        After
        6 cycles (in absence of progression or intolerance), LB-100 will be administered as maintenance phase, until disease progression
        or intolerance, in cycles every 3 weeks.

         

        Treatment
        will continue until disease progression, development of unacceptable· toxicity, non-compliance, withdrawal of consent
        by the patient or investigator decision.

 

    	 	Appendix 5 - Page 5	 

    	 

    

 

	Drug
    Information	 	LB-100

         

        Pharmaceutical
        form: Sterile solution for injection.

         

        Route
        of administration: Intravenous use.

         

        Doxorubicin

         

        Pharmaceutical
        form: Powder for injection.

         

        Route
        of administration: Intravenous use.

 

	Inclusion
    Criteria	 	1.	Patients
    must provide written informed consent prior to performance of study-specific procedures and must be willing to comply with
    treatment and follow-up. Informed consent must be obtained prior to start of the screening process. Procedures conducted as
    part of the patient’s routine clinical management (e.g. blood count, imaging tests, etc.) and obtained prior to signature
    of informed consent may be used for screening or baseline purposes as long as these procedures are conducted as specified
    in the protocol.
	 	 	2.	Age
    ≥ 18 years
	 	 	3.	Histologic
    diagnosis of soft tissue sarcoma (undifferentiated plea- morphic sarcoma, leiomyosarcoma, myxoid and hypercellular myxoid
    liposarcoma, myxofibrosarcoma, NOS sarcoma, synovial sarcoma, fibrosarcoma, and malignant nerve sheath tumor) confirmed by
    central pathology review.
	 	 	4.	Mandatory
    pre-treatment formalin-fixed paraffin embedded (FFPE) tumor tissue must be provided for all subjects without exception for
    central pathology review and translational research. If archive biopsy is not available or this achived tuor sample is older
    than 3 months, the patient must be willing to have a pre-treatment re-biopsy of primary or meta- static tumor (baseline biopsy).
    In the phase I part, there will be a second mandatory biopsy just before the 3rd cycle.
	 	 	5.	Metastatic/advanced
    disease in progression in the last 6 months, and not suitable for metastasectomy or surgical resection.

 

    	 	Appendix 5 - Page 6	 

    	 

    

 

	 	 	6.	Measurable
    disease according to RECIST 1.1 criteria.
	 	 	7.	Eastern
    Cooperative Oncology Group (ECOG) Performance Status of 0-1.
	 	 	8.	The
    patient is naive of any previous treatment with anthracyclines.
	 	 	9.	Adequate
    organ, hepatic, renal, cardiac, and hematologic function.
	 	 	10.	Laboratory
    tests as follows: 

 

	 	 	Absolute
    neutrophil count ≥ 1,200/mm3
	 	 	 
	 	 	Platelet
    count ≥ 100,000/mm3
	 	 	 
	 	 	Hg
    > 9 g/dl
	 	 	 
	 	 	Bilirubin
    ≤ 1.5 mg/dL 
	 	 	 
	 	 	PT
    and INR ≤ 1.5
	 	 	 
	 	 	AST
    and ALT ≤ 2.5 times ULN
	 	 	 
	 	 	Creatinine
    ≤ 1.5 mg/dL or estimated C1Creatinine ≥ 90 ml/min 
	 	 	 
	 	 	Calcium
    ≤ 12 mg/dL
	 	 	 
	 	 	Blood
    glucose < 150 mg/dL

 

	 	 	11.	Left
    ventricular ejection fraction ≥ 50% by echocardiogram or MUGA scan assessed within 28 days before randomization.
	 	 	 	 
	 	 	12.	Females
    of childbearing potential must have a negative serum or urine pregnancy test within 24 hours prior to study treatment initiation
    and agree to use birth control measures during study treatment and for 7 months after its completion. Patients must not be
    pregnant or nursing at study entry. Women/men of reproductive potential must have agreed to use an effective contraceptive
    method.
	 	 	 	 
	 	 	13.	Men
    or women of child bearing potential should be using an effective method of contraception before entry into the study and throughout
    the same and for 6 months after ending the study. Women of childbearing potential must have a negative urine pregnancy test
    before study treatment initiation.
	 	 	 	 
	 	 	14.	Patient
    must have a Central Venous Catheter for treatment.

 

    	 	Appendix 5 - Page 7	 

    	 

    

 

	Exclusion
    Criteria	 	1.	Previous
    treatment with doxorubicin, epirubicin, idarubicin, and/or other anthracyclines or any other systemic therapy.
	 	 	2.	Uncontrolled
    intercurrent illness including (not limited to): symptomatic congestive heart failure (CHF) (New York Heart Association [NYHA]
    III/IV), unstable angina pectoris or coronary angioplasty, or stenting within 24 weeks prior to registration, unstable cardiac
    arrhythmia (ongoing cardiac dysrhythmias of NCI CTCAE version 4.03 Grade >= 2), known psychiatric illness that would limit
    study compliance, intra- cardiac defibrillators, known cardiac metastases, or abnormal cardiac valve morphology(>= Grade
    3).
	 	 	3.	It
    should be performed HBV and HCV serologies prior to inclusion. If HbsAg is positive it is recommended to reject the existence
    of replicative phase (HbaAg+, DNA VHB+). If these were positives the inclusion is not recommended, remaining
    at investigators’ discretion the preventive treatment with lamivudine. If a potential patient is positive for antiHCV
    antibodies, presence of the virus should be ruled out with a qualitative PCR, or the patient should NOT be included in the
    study (if a qualitative PCR cannot be performed then patient will not be able to enter the study)
	 	 	4.	Other
    disease or illness within the past 6 months, including any of the following:

 

	 	 	●	Myocardial
    infarction
	 	 	●	Severe
    or unstable angina
	 	 	●	Coronary
    or peripheral artery bypass graft
	 	 	●	Symptomatic
    congestive heart failure
	 	 	●	Cerebrovascular
    accident or transient ischemic attack
	 	 	●	Pulmonary
    embolism

 

	 	 	5.	Plasma
    bilirubin > ULN.
	 	 	6.	Creatinine
    > 1.6 mg/dL.
	 	 	7.	Evidence
    of a bleeding diathesis.
	 	 	8.	Ongoing
    cardiac dysrhythmias > Grade 2.
	 	 	9.	Prolonged
    QTc interval (i.e., QTc > 450 msec for males or QTc > 470 msec for females) on baseline ECG.
	 	 	10.	History
    of allergy to study drug components.
	 	 	11.	History
    of another cancer with the exception of adequately treated basal cell carcinoma or in situ cervical cancer, or with a relapse-free
    interval longer than 5 years after treatment of the primary cancer with no substantial risk of recurrence.
	 	 	12.	Presence
    of brain or central nervous system metastases at the time of randomization .
	 	 	13.	Patient
    is unwilling to provide translational tumor sample/s or biopsies (if required) are not easy to be taken.
	 	 	 	 
	Translational
    Study Objectives	 	1.	To
    determine predictive biomarkers, or predictive gene signatures, of LB-100 plus doxorubicin, in formalin-fixed paraffin-embedded
    (FFPE) tumor samples collected before treatment.
	 	 	2.	To
    study the cell signaling pathways relevant in the potential clinical benefit induced by the combination of LB-100 plus doxorubicin.
	 	 	3.	To
    evaluate the immune-phenotype induced by LB-100 plus doxorubicin, in peripheral blood samples collected at several time points
    during patient treatment.
	 	 	4.	To
    assess potential soluble predictive biomarkers of LB-100 plus doxorubicin in plasma samples collected during patient treatment.

 

    	 	Appendix 5 - Page 8Exhibit

Exhibit 10.1

NOVAN, INC.

2016 INCENTIVE AWARD PLAN

(As amended August 16, 2018, and approved by the stockholders of Novan, Inc. on July 31, 2019)

ARTICLE 1. 
 
PURPOSE
The purpose of the Novan, Inc. 2016 Incentive Award Plan (as it may be amended or restated from time to time, the “Plan”) is to promote the success and enhance the value of Novan, Inc. the (“Company”) by linking the individual interests of the members of the Board, Employees, and Consultants to those of Company stockholders and by providing such individuals with an incentive for outstanding performance to generate superior returns to Company stockholders. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of members of the Board, Employees, and Consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. 
ARTICLE 2. 

DEFINITIONS AND CONSTRUCTION
Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun shall include the plural where the context so indicates.
2.1    “Administrator” shall mean the entity that conducts the general administration of the Plan as provided in Article 12. With reference to the duties of the Committee under the Plan which have been delegated to one or more persons pursuant to Section 12.6, or as to which the Board has assumed, the term “Administrator” shall refer to such person(s) unless the Committee or the Board has revoked such delegation or the Board has terminated the assumption of such duties.
2.2    “Applicable Accounting Standards” shall mean Generally Accepted Accounting Principles in the United States, International Financial Reporting Standards or such other accounting principles or standards as may apply to the Company’s financial statements under United States federal securities laws from time to time.
2.3    “Applicable Law” shall mean any applicable law, including without limitation: (a) provisions of the Code, the Securities Act, the Exchange Act and any rules or regulations thereunder; (b) corporate, securities, tax or other laws, statutes, rules, requirements or regulations, whether federal, state, local or foreign; and (c) rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded. 
2.4    “Automatic Exercise Date” shall mean, with respect to an Option or a Stock Appreciation Right, the last business day of the applicable Option Term or Stock Appreciation Right Term that was initially established by the Administrator for such Option or Stock Appreciation Right (e.g., the last business day prior to the tenth anniversary of the date of grant of such Option or Stock Appreciation Right if the Option or Stock Appreciation Right initially had a ten-year Option Term or Stock Appreciation Right Term, as applicable).
2.5    “Award” shall mean an Option, a Stock Appreciation Right, a Restricted Stock award, a Restricted Stock Unit award, an Other Stock or Cash Based Award or a Dividend Equivalent award, which may be awarded or granted under the Plan.
2.6    “Award Agreement” shall mean any written notice, agreement, terms and conditions, contract or other instrument or document evidencing an Award, including through electronic medium, which shall contain such terms and conditions with respect to an Award as the Administrator shall determine consistent with the Plan.
2.7    “Award Limit” shall mean with respect to Awards that shall be payable in Shares or in cash, as the case may be, the respective limit set forth in Section 3.2. 
2.8    “Board” shall mean the Board of Directors of the Company.
2.9    “Change in Control” shall mean and includes each of the following: 

(a)A transaction or series of transactions (other than an offering of Common Stock to the general public through a registration statement filed with the Securities and Exchange Commission) whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) directly or indirectly acquires beneficial ownership (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) of securities of the Company possessing more than 50% of the total combined voting power of the Company’s securities outstanding immediately after such acquisition; provided, however, that the following acquisitions shall not constitute a Change in Control: (i) any acquisition by the Company or any of its Subsidiaries; (ii) any acquisition by an employee benefit plan maintained by the Company or any of its Subsidiaries, (iii) any acquisition which complies with Sections 2.9(c)(i), 2.9(c)(ii) and 2.9(c)(iii); or (iv) in respect of an Award held by a particular Holder, any acquisition by the Holder or any group of persons including the Holder (or any entity controlled by the Holder or any group of persons including the Holder); or
(b)The Incumbent Directors cease for any reason to constitute a majority of the Board;
(c)The consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination, (y) a sale or other disposition of all or substantially all of the Company’s assets in any single transaction or series of related transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction:
(i)which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction, and
(ii)after which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this Section 2.9(c)(ii) as beneficially owning 50% or more of the combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; and 
(iii)after which at least a majority of the members of the board of directors (or the analogous governing body) of the Successor Entity were Board members at the time of the Board’s approval of the execution of the initial agreement providing for such transaction; or
(d)The date of the completion of a liquidation or dissolution of the Company.
Notwithstanding the foregoing, if a Change in Control constitutes a payment event with respect to any Award (or any portion of an Award) that provides for the deferral of compensation that is subject to Section 409A, to the extent required to avoid the imposition of additional taxes under Section 409A, the transaction or event described in subsection (a), (b), (c) or (d) with respect to such Award (or portion thereof) shall only constitute a Change in Control for purposes of the payment timing of such Award if such transaction also constitutes a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5).
The Administrator shall have full and final authority, which shall be exercised in its sole discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition, the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided that any exercise of authority in conjunction with a determination of whether a Change in Control is a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be consistent with such regulation.

2.10    “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, together with the regulations and official guidance promulgated thereunder, whether issued prior or subsequent to the grant of any Award.
2.11    “Committee” shall mean the Compensation Committee of the Board, or another committee or subcommittee of the Board or the Compensation Committee of the Board described in Article 12 hereof.
2.12    “Common Stock” shall mean the common stock of the Company, par value $0.0001 per share.
2.13    “Company” shall have the meaning set forth in Article 1.
2.14    “Consultant” shall mean any consultant or adviser engaged to provide services to the Company or any Subsidiary who qualifies as a consultant or advisor under the applicable rules of the Securities and Exchange Commission for registration of shares on a Form S-8 Registration Statement.
2.15     “Covered Employee” shall mean any Employee who is, or could become, a “covered employee” within the meaning of Section 162(m) of the Code.
2.16    “Director” shall mean a member of the Board, as constituted from time to time.
2.17    “Director Limit” shall have the meaning set forth in Section 4.6.
2.18    “Dividend Equivalent” shall mean a right to receive the equivalent value (in cash or Shares) of dividends paid on Shares, awarded under Section 10.2.
2.19    “DRO” shall mean a “domestic relations order” as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended from time to time, or the rules thereunder. 
2.20    “Effective Date” shall mean the day prior to the Public Trading Date.
2.21    “Eligible Individual” shall mean any person who is an Employee, a Consultant or a Non-Employee Director, as determined by the Administrator.
2.22    “Employee” shall mean any officer or other employee (as determined in accordance with Section 3401(c) of the Code and the Treasury Regulations thereunder) of the Company or of any Subsidiary.
2.23    “Equity Restructuring” shall mean a nonreciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the number or kind of Shares (or other securities of the Company) or the share price of Common Stock (or other securities) and causes a change in the per-share value of the Common Stock underlying outstanding Awards.
2.24    “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.
2.25    “Expiration Date” shall have the meaning given to such term in Section 13.1(c).
2.26    “Fair Market Value” shall mean, as of any given date, the value of a Share determined as follows:
(a)    If the Common Stock is (i) listed on any established securities exchange (such as the New York Stock Exchange, the NASDAQ Capital Market, the NASDAQ Global Market and the NASDAQ Global Select Market), (ii) listed on any national market system or (iii) quoted or traded on any automated quotation system, its Fair Market Value shall be the closing sales price for a Share as quoted on such exchange or system for such date or, if there is no closing sales price for a Share on the date in question, the closing sales price for a Share on the last preceding date for which such quotation exists, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

(b)    If the Common Stock is not listed on an established securities exchange, national market system or automated quotation system, but the Common Stock is regularly quoted by a recognized securities dealer, its Fair Market Value shall be the mean of the high bid and low asked prices for such date or, if there are no high bid and low asked prices for a Share on such date, the high bid and low asked prices for a Share on the last preceding date for which such information exists, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or
(c)    If the Common Stock is neither listed on an established securities exchange, national market system or automated quotation system nor regularly quoted by a recognized securities dealer, its Fair Market Value shall be established by the Administrator in good faith.
Notwithstanding the foregoing, with respect to any Award granted after the effectiveness of the Company’s registration statement relating to its initial public offering and prior to the Public Trading Date, the Fair Market Value shall mean the initial public offering price of a Share as set forth in the Company’s final prospectus relating to its initial public offering filed with the Securities and Exchange Commission.
2.27     “Greater Than 10% Stockholder” shall mean an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or any subsidiary corporation (as defined in Section 424(f) of the Code) or parent corporation thereof (as defined in Section 424(e) of the Code).
2.28    “Holder” shall mean a person who has been granted an Award.
2.29    “Incentive Stock Option” shall mean an Option that is intended to qualify as an incentive stock option and conforms to the applicable provisions of Section 422 of the Code.
2.30    “Incumbent Directors’ shall mean for any period of 12 consecutive months, individuals who, at the beginning of such period, constitute the Board together with any new Director(s) (other than a Director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in Section 2.9(a) or 2.9(c)) whose election or nomination for election to the Board was approved by a vote of at least a majority (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for Director without objection to such nomination) of the Directors then still in office who either were Directors at the beginning of the 12-month period or whose election or nomination for election was previously so approved.  No individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to Directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be an Incumbent Director.
2.31    “Non-Employee Director” shall mean a Director of the Company who is not an Employee.
2.32    “Non-Employee Director Equity Compensation Policy” shall have the meaning set forth in Section 4.6. 
2.33    “Non-Qualified Stock Option” shall mean an Option that is not an Incentive Stock Option or which is designated as an Incentive Stock Option but does not meet the applicable requirements of Section 422 of the Code.
2.34    “Option” shall mean a right to purchase Shares at a specified exercise price, granted under Article 6. An Option shall be either a Non-Qualified Stock Option or an Incentive Stock Option; provided, however, that Options granted to Non-Employee Directors and Consultants shall only be Non-Qualified Stock Options.
2.35    “Option Term” shall have the meaning set forth in Section 6.4.
2.36    “Organizational Documents” shall mean, collectively, (a) the Company’s articles of incorporation, certificate of incorporation, bylaws or other similar organizational documents relating to the creation and governance of the Company, and (b) the Committee’s charter or other similar organizational documentation relating to the creation and governance of the Committee. 
2.37    “Other Stock or Cash Based Award” shall mean a cash payment, cash bonus award, stock payment, stock bonus award, performance award or incentive award that is paid in cash, Shares or a combination of both, awarded under Section 10.1, which may include, without limitation, deferred stock, deferred stock units, retainers, committee fees, and meeting-based fees.
2.38    “Performance-Based Compensation” shall mean any compensation that is intended to qualify as “performance-based compensation” as described in Section 162(m)(4)(C) of the Code.

2.39    “Performance Criteria” shall mean the criteria (and adjustments) that the Administrator selects for an Award for purposes of establishing the Performance Goal or Performance Goals for a Performance Period, determined as follows:
(a)The Performance Criteria that shall be used to establish Performance Goals are limited to the following: (i) net earnings or losses (either before or after one or more of the following: (A) interest, (B) taxes, (C) depreciation, (D) amortization and (E) non-cash equity-based compensation expense); (ii) gross or net sales or revenue or sales or revenue growth; (iii) net income (either before or after taxes); (iv) adjusted net income; (v) operating earnings or profit (either before or after taxes); (vi) cash flow (including, but not limited to, operating cash flow and free cash flow); (vii) return on assets or net assets; (viii) return on capital (or invested capital) and cost of capital; (ix) return on stockholders’ equity; (x) total stockholder return; (xi) return on sales; (xii) gross or net profit or operating margin; (xiii) costs, reductions in costs and cost control measures; (xiv) funds from operations or funds available for distributions; (xv) expenses; (xvi) working capital; (xvii) earnings or loss per share; (xviii) adjusted earnings or loss per share; (xix) price per share or dividends per share (or appreciation in and/or maintenance of such price or dividends); (xx) economic value added models or similar metrics; (xxi) regulatory achievements or compliance (including, without limitation, regulatory body approval for commercialization of a product); (xxii) implementation, completion or attainment of critical projects, processes or objectives relating to research, development, regulatory, commercial, or strategic milestones or developments; (xxiii) sales, unit volume or market share; (xxiv) licensing revenue; (xxv) brand recognition/acceptance, (xxvi) inventory turns or cycle time, (xxvii) strategic initiatives (including, without limitation, with respect to market penetration and spending efficiency, geographic business expansion, manufacturing, commercialization, production and productivity, customer satisfaction and growth, employee satisfaction, recruitment and maintenance of personnel, human resources management, supervision of litigation and other legal matters, information technology, strategic partnerships and transactions (including acquisitions, dispositions, joint ventures, in-licensing and out-licensing of intellectual property, and establishment of relationships with commercial entities with respect to the marketing, distribution and sale of Company products, and factoring transactions, research and development and related activity, financial or other capital raising transactions, operating efficiency, and asset quality)); (xxiii) financial ratios (including, without limitation, those measuring liquidity, activity, profitability or leverage); and (xxix) compound annual growth rate, any of which may be measured either in absolute terms or as compared to any incremental increase or decrease or as compared to results of a peer group or to market performance indicators or indices. 
(b)The Administrator, in its sole discretion, may provide that one or more objectively determinable adjustments shall be made to one or more of the Performance Goals. Such adjustments may include, but are not limited to, one or more of the following: (i) items related to a change in Applicable Accounting Standards; (ii) items relating to financing activities; (iii) expenses for restructuring or productivity initiatives; (iv) other non-operating items; (v) items related to acquisitions; (vi) items attributable to the business operations of any entity acquired by the Company during the Performance Period; (vii) items related to the sale or disposition of a business or segment of a business; (viii) items related to discontinued operations that do not qualify as a segment of a business under Applicable Accounting Standards; (ix) items attributable to any stock dividend, stock split, combination or exchange of stock occurring during the Performance Period; (x) any other items of significant income or expense which are determined to be appropriate adjustments; (xi) items relating to unusual or nonrecurring corporate transactions, events or developments, (xii) items related to amortization of acquired intangible assets; (xiii) items that are outside the scope of the Company’s core, on-going business activities; (xiv) items related to acquired in-process research and development; (xv) items relating to changes in tax laws; (xvi) items relating to major licensing or partnership arrangements; (xvii) items relating to asset impairment charges; (xviii) items relating to gains or losses for litigation, arbitration and contractual settlements; (xix) items attributable to expenses incurred in connection with a reduction in force or early retirement initiative; (xx) items relating to foreign exchange or currency transactions and/or fluctuations; or (xxi) items relating to any other unusual or nonrecurring events or changes in Applicable Law, Applicable Accounting Standards or business conditions. For all Awards intended to qualify as Performance-Based Compensation, such determinations shall be made within the time prescribed by, and otherwise in compliance with, Section 162(m) of the Code.

2.40    “Performance Goals” shall mean, for a Performance Period, one or more goals established in writing by the Administrator for the Performance Period based upon one or more Performance Criteria. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a Subsidiary, division, business unit, or an individual. The achievement of each Performance Goal shall be determined, to the extent applicable, with reference to Applicable Accounting Standards.
2.41    “Performance Period” shall mean one or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Holder’s right to, vesting of, and/or the payment in respect of, an Award.
2.42    “Permitted Transferee” shall mean, with respect to a Holder, any “family member” of the Holder, as defined in the General Instructions to Form S-8 Registration Statement under the Securities Act (or any successor form thereto), after taking into account Applicable Law.
2.43     “Plan” shall have the meaning set forth in Article 1.
2.44     “Program” shall mean any program adopted by the Administrator pursuant to the Plan containing the terms and conditions intended to govern a specified type of Award granted under the Plan and pursuant to which such type of Award may be granted under the Plan.
2.45    “Public Trading Date” shall mean the first date upon which Common Stock is listed (or approved for listing) upon notice of issuance on any securities exchange or designated (or approved for designation) upon notice of issuance as a national market security on an interdealer quotation system.
2.46    “Restricted Stock” shall mean Common Stock awarded under Article 8 that is subject to certain restrictions and may be subject to risk of forfeiture or repurchase.
2.47    “Restricted Stock Units” shall mean the right to receive Shares awarded under Article 9.
2.48    “Section 409A” shall mean Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder, including, without limitation, any such regulations or other guidance that may be issued after the Effective Date. 
2.49    “Securities Act” shall mean the Securities Act of 1933, as amended.
2.50    “Shares” shall mean shares of Common Stock.
2.51    “Stock Appreciation Right” shall mean an Award entitling the Holder (or other person entitled to exercise pursuant to the Plan) to exercise all or a specified portion thereof (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the difference obtained by subtracting the exercise price per share of such Award from the Fair Market Value on the date of exercise of such Award by the number of Shares with respect to which such Award shall have been exercised, subject to any limitations the Administrator may impose. 
2.52    “SAR Term” shall have the meaning set forth in Section 6.4.
2.53    “Subsidiary” shall mean any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing at least fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.
2.54    “Substitute Award” shall mean an Award granted under the Plan in connection with a corporate transaction, such as a merger, combination, consolidation or acquisition of property or stock, in any case, upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity; provided, however, that in no event shall the term “Substitute Award” be construed to refer to an award made in connection with the cancellation and repricing of an Option or Stock Appreciation Right.
2.55    “Termination of Service” shall mean:

(a)As to a Consultant, the time when the engagement of a Holder as a Consultant to the Company or a Subsidiary is terminated for any reason, with or without cause, including, without limitation, by resignation, discharge, death or retirement, but excluding terminations where the Consultant simultaneously commences or remains in employment or service with the Company or any Subsidiary. 
(b)As to a Non-Employee Director, the time when a Holder who is a Non-Employee Director ceases to be a Director for any reason, including, without limitation, a termination by resignation, failure to be elected, death or retirement, but excluding terminations where the Holder simultaneously commences or remains in employment or service with the Company or any Subsidiary.
(c)As to an Employee, the time when the employee-employer relationship between a Holder and the Company or any Subsidiary is terminated for any reason, including, without limitation, a termination by resignation, discharge, death, disability or retirement; but excluding terminations where the Holder simultaneously commences or remains in employment or service with the Company or any Subsidiary. 
The Administrator, in its sole discretion, shall determine the effect of all matters and questions relating to any Termination of Service, including, without limitation, whether a Termination of Service has occurred, whether a Termination of Service resulted from a discharge for cause and all questions of whether particular leaves of absence constitute a Termination of Service; provided, however, that, with respect to Incentive Stock Options, unless the Administrator otherwise provides in the terms of any Program, Award Agreement or otherwise, or as otherwise required by Applicable Law, a leave of absence, change in status from an employee to an independent contractor or other change in the employee-employer relationship shall constitute a Termination of Service only if, and to the extent that, such leave of absence, change in status or other change interrupts employment for the purposes of Section 422(a)(2) of the Code and the then-applicable regulations and revenue rulings under said Section. For purposes of the Plan, a Holder’s employee-employer relationship or consultancy relations shall be deemed to be terminated in the event that the Subsidiary employing or contracting with such Holder ceases to remain an Subsidiary following any merger, sale of stock or other corporate transaction or event (including, without limitation, a spin-off).
ARTICLE 3.
SHARES SUBJECT TO THE PLAN
3.1    Number of Shares.
(a)Subject to Sections 3.1(b) and 13.2, the aggregate number of Shares which may be issued or transferred pursuant to Awards (including, without limitation, Incentive Stock Options) under the Plan is 3,033,333. Any Shares distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Common Stock, treasury Common Stock or Common Stock purchased on the open market.
(b)If any Shares subject to an Award are forfeited or expire, or such Award is settled for cash (in whole or in part), the Shares subject to such Award shall, to the extent of such forfeiture, expiration or cash settlement, again be available for future grants of Awards under the Plan. Notwithstanding anything to the contrary contained herein, the following Shares shall not be added to the Shares authorized for grant under Section 3.1(a) and shall not be available for future grants of Awards: (i) Shares tendered by a Holder or withheld by the Company in payment of the exercise price of an Option; (ii) Shares tendered by the Holder or withheld by the Company to satisfy any tax withholding obligation with respect to an Award; (iii) Shares subject to a Stock Appreciation Right that are not issued in connection with the stock settlement of the Stock Appreciation Right on exercise thereof; and (iv) Shares purchased on the open market with the cash proceeds from the exercise of Options. Any Shares repurchased by the Company under Section 8.4 at the same price paid by the Holder so that such Shares are returned to the Company shall again be available for Awards. The payment of Dividend Equivalents in cash in conjunction with any outstanding Awards shall not be counted against the Shares available for issuance under the Plan. Notwithstanding the provisions of this Section 3.1(b), no Shares may again be optioned, granted or awarded if such action would cause an Incentive Stock Option to fail to qualify as an incentive stock option under Section 422 of the Code.
(c)Substitute Awards shall not reduce the Shares authorized for grant under the Plan, except as may be required by reason of Section 422 of the Code. Additionally, in the event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines has shares available under a pre-existing plan approved by its stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities 

party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan; provided that Awards using such available Shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not employed by or providing services to the Company or its Subsidiaries immediately prior to such acquisition or combination.
3.2    Limitation on Number of Shares Subject to Awards. Notwithstanding any provision in the Plan to the contrary, and subject to Section 13.2, the maximum aggregate number of Shares with respect to one or more Awards that may be granted to any one person  during any calendar year shall be 1,000,000 and the maximum aggregate amount of cash that may be paid in cash to any one person during any calendar year with respect to one or more Awards payable in cash shall be $2,000,000; provided, however, that the foregoing limitations shall not apply prior to the Public Trading Date and, following the Public Trading Date, the foregoing limitations shall not apply until the earliest of: (a) the first material modification of the Plan (including any increase in the number of Shares reserved for issuance under the Plan in accordance with Section 3.1); (b) the issuance of all of the Shares reserved for issuance under the Plan; (c) the expiration of the Plan; (d) the first meeting of stockholders at which members of the Board are to be elected that occurs after the close of the third calendar year following the calendar year in which occurred the first registration of an equity security of the Company under Section 12 of the Exchange Act; or (e) such other date, if any, on which the “reliance period” described under U.S. Treasury Regulation 1.162-27(f)(2) expires pursuant to Section 162(m) of the Code and the rules and regulations promulgated thereunder. To the extent required by Section 162(m) of the Code, Shares subject to Awards which are canceled shall continue to be counted against the Award Limit.
 
ARTICLE 4.
 GRANTING OF AWARDS
4.1    Participation. The Administrator may, from time to time, select from among all Eligible Individuals, those to whom an Award shall be granted and shall determine the nature and amount of each Award, which shall not be inconsistent with the requirements of the Plan. Except for any Non-Employee Director’s right to Awards that may be required pursuant to the Non-Employee Director Equity Compensation Policy as described in Section 4.6, no Eligible Individual or other Person shall have any right to be granted an Award pursuant to the Plan and neither the Company nor the Administrator is obligated to treat Eligible Individuals, Holders or any other persons uniformly. Participation by each Holder in the Plan shall be voluntary and nothing in the Plan or any Program shall be construed as mandating that any Eligible Individual or other Person shall participate in the Plan.
4.2    Award Agreement. Each Award shall be evidenced by an Award Agreement that sets forth the terms, conditions and limitations for such Award as determined by the Administrator in its sole discretion (consistent with the requirements of the Plan and any applicable Program). Award Agreements evidencing Awards intended to qualify as Performance-Based Compensation shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 162(m) of the Code. Award Agreements evidencing Incentive Stock Options shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 422 of the Code.
4.3    Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan, and any Award granted or awarded to any individual who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b‐3 of the Exchange Act and any amendments thereto) that are requirements for the application of such exemptive rule. To the extent permitted by Applicable Law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.
4.4    At-Will Service. Nothing in the Plan or in any Program or Award Agreement hereunder shall confer upon any Holder any right to continue in the employ of, or as a Director or Consultant for, the Company or any Subsidiary, or shall interfere with or restrict in any way the rights of the Company and any Subsidiary, which rights are hereby expressly reserved, to discharge any Holder at any time for any reason whatsoever, with or without cause, and with or without notice, or to terminate or change all other terms and conditions of employment or engagement, except to the extent expressly provided otherwise in a written agreement between the Holder and the Company or any Subsidiary. 

4.5    Foreign Holders. Notwithstanding any provision of the Plan or applicable Program to the contrary, in order to comply with the laws in countries other than the United States in which the Company and its Subsidiaries operate or have Employees, Non-Employee Directors or Consultants, or in order to comply with the requirements of any foreign securities exchange or other Applicable Law, the Administrator, in its sole discretion, shall have the power and authority to: (a) determine which Subsidiaries shall be covered by the Plan; (b) determine which Eligible Individuals outside the United States are eligible to participate in the Plan; (c) modify the terms and conditions of any Award granted to Eligible Individuals outside the United States to comply with Applicable Law (including, without limitation, applicable foreign laws or listing requirements of any foreign securities exchange); (d) establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable; provided, however, that no such subplans and/or modifications shall increase the share limitation contained in Section 3.1, the Award Limit or the Director Limit; and (e) take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local governmental regulatory exemptions or approvals or listing requirements of any foreign securities exchange. 
4.6    Non-Employee Director Awards. 
(a)Non-Employee Director Equity Compensation Policy.  The Administrator, in its sole discretion, may provide that Awards granted to Non-Employee Directors shall be granted pursuant to a written nondiscretionary formula established by the Administrator (the “Non-Employee Director Equity Compensation Policy”), subject to the limitations of the Plan. The Non-Employee Director Equity Compensation Policy shall set forth the type of Award(s) to be granted to Non-Employee Directors, the number of Shares to be subject to Non-Employee Director Awards, the conditions on which such Awards shall be granted, become exercisable and/or payable and expire, and such other terms and conditions as the Administrator shall determine in its sole discretion. The Non-Employee Director Equity Compensation Policy may be modified by the Administrator from time to time in its sole discretion.
(b)Director Limit.  Notwithstanding any provision to the contrary in the Plan or in the Non-Employee Director Equity Compensation Policy, the sum of the grant date fair value of equity-based Awards and the amount of any cash-based Awards granted to a Non-Employee Director during any calendar year shall not exceed $500,000 (the “Director Limit”). 
ARTICLE 5.
 PROVISIONS APPLICABLE TO AWARDS INTENDED TO QUALIFY AS PERFORMANCE-BASED COMPENSATION
5.1    Purpose. The Administrator may, in its sole discretion, (a) determine whether an Award is intended to qualify as Performance-Based Compensation and (b) at any time after any such determination, alter such intent for any or no reason. If the Administrator, in its sole discretion, decides to grant an Award that is intended to qualify as Performance-Based Compensation (other than an Option or Stock Appreciation Right), then the provisions of this Article 5 shall control over any contrary provision contained in the Plan or any applicable Program; provided that, if after such decision the Administrator alters such intention for any reason, the provisions of this Article 5 shall no longer control over any other provision contained in the Plan or any applicable Program. The Administrator, in its sole discretion, may (i) grant Awards to Eligible Individuals that are based on Performance Criteria or Performance Goals or any such other criteria and goals as the Administrator shall establish, but that do not satisfy the requirements of this Article 5 and that are not intended to qualify as Performance-Based Compensation and (ii) subject any Awards intended to qualify as Performance-Based Compensation to additional conditions and restrictions unrelated to any Performance Criteria or Performance Goals (including, without limitation, continued employment or service requirements) to the extent such Awards otherwise satisfy the requirements of this Article 5 with respect to the Performance Criteria and Performance Goals applicable thereto.  Unless otherwise specified by the Administrator at the time of grant, the Performance Criteria with respect to an Award intended to be Performance-Based Compensation payable to a Covered Employee shall be determined on the basis of Applicable Accounting Standards. 

5.2    Procedures with Respect to Performance-Based Awards. To the extent necessary to comply with the requirements of Section 162(m)(4)(C) of the Code, with respect to any Award which is intended to qualify as Performance-Based Compensation, no later than 90 days following the commencement of any Performance Period or any designated fiscal period or period of service (or such earlier time as may be required under Section 162(m) of the Code), the Administrator shall, in writing, (a) designate one or more Eligible Individuals, (b) select the Performance Criteria applicable to the Performance Period, (c) establish the Performance Goals, and amounts of such Awards, as applicable, which may be earned for such Performance Period based on the Performance Criteria, and (d) specify the relationship between Performance Criteria and the Performance Goals and the amounts of such Awards, as applicable, to be earned by each Covered Employee for such Performance Period. Following the completion of each Performance Period, the Administrator shall certify in writing whether and the extent to which the applicable Performance Goals have been achieved for such Performance Period. In determining the amount earned under such Awards, the Administrator (i) shall, unless otherwise provided in an Award Agreement, have the right to reduce or eliminate the amount payable at a given level of performance to take into account additional factors that the Administrator may deem relevant, including the assessment of individual or corporate performance for the Performance Period, but (ii) shall in no event have the right to increase the amount payable for any reason.
5.3    Payment of Performance-Based Awards. Unless otherwise provided in the applicable Program or Award Agreement and only to the extent otherwise permitted by Section 162(m) of the Code, as to an Award that is intended to qualify as Performance-Based Compensation, the Holder must be employed by the Company or a Subsidiary throughout the Performance Period. Unless otherwise provided in the applicable Program or Award Agreement, a Holder shall be eligible to receive payment pursuant to such Awards for a Performance Period only if and to the extent the Performance Goals for such Performance Period are achieved.
5.4    Additional Limitations. Notwithstanding any other provision of the Plan and except as otherwise determined by the Administrator, any Award which is granted to an Eligible Individual and is intended to qualify as Performance-Based Compensation shall be subject to any additional limitations set forth in Section 162(m) of the Code or any regulations or rulings issued thereunder that are requirements for qualification as Performance-Based Compensation, and the Plan and the applicable Program and Award Agreement shall be deemed amended to the extent necessary to conform to such requirements.
ARTICLE 6.
 GRANTING OF OPTIONS AND STOCK APPRECIATION RIGHTS
6.1    Granting of Options and Stock Appreciation Rights to Eligible Individuals. The Administrator is authorized to grant Options and Stock Appreciation Rights to Eligible Individuals from time to time, in its sole discretion, on such terms and conditions as it may determine, which shall not be inconsistent with the Plan.
6.2    Qualification of Incentive Stock Options. The Administrator may grant Options intended to qualify as Incentive Stock Options only to employees of the Company, any of the Company’s present or future “parent corporations” or “subsidiary corporations” as defined in Sections 424(e) or (f) of the Code, respectively, and any other entities the employees of which are eligible to receive Incentive Stock Options under the Code. No person who qualifies as a Greater Than 10% Stockholder may be granted an Incentive Stock Option unless such Incentive Stock Option conforms to the applicable provisions of Section 422 of the Code. To the extent that the aggregate fair market value of stock with respect to which “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to Section 422(d) of the Code) are exercisable for the first time by a Holder during any calendar year under the Plan, and all other plans of the Company and any parent corporation or subsidiary corporation thereof (as defined in Section 424(e) and 424(f) of the Code, respectively), exceeds $100,000, the Options shall be treated as Non-Qualified Stock Options to the extent required by Section 422 of the Code. The rule set forth in the immediately preceding sentence shall be applied by taking Options and other “incentive stock options” into account in the order in which they were granted and the fair market value of stock shall be determined as of the time the respective options were granted. Any interpretations and rules under the Plan with respect to Incentive Stock Options shall be consistent with the provisions of Section 422 of the Code.  Neither the Company nor the Administrator shall have any liability to a Holder, or any other Person, (a) if an Option (or any part thereof) which is intended to qualify as an Incentive Stock Option fails to qualify as an Incentive Stock Option or (b) for any action or omission by the Company or the Administrator that causes an Option not to qualify as an Incentive Stock Option, including without limitation, the conversion of an Incentive Stock Option to a Non-Qualified Stock Option or the grant of an Option intended as an Incentive Stock Option that fails to satisfy the requirements under the Code applicable to an Incentive Stock Option.  

6.3    Option and Stock Appreciation Right Exercise Price. The exercise price per Share subject to each Option and Stock Appreciation Right shall be set by the Administrator, but shall not be less than 100% of the Fair Market Value of a Share on the date the Option or Stock Appreciation Right, as applicable, is granted (or, as to Incentive Stock Options, on the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code). In addition, in the case of Incentive Stock Options granted to a Greater Than 10% Stockholder, such price shall not be less than 110% of the Fair Market Value of a Share on the date the Option is granted (or the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code). Notwithstanding the foregoing, in the case of an Option or Stock Appreciation Right that is a Substitute Award, the exercise price per share of the Shares subject to such Option or Stock Appreciation Right, as applicable, may be less than the Fair Market Value per share on the date of grant; provided that the exercise price of any Substitute Award shall be determined in accordance with the applicable requirements of Section 424 and 409A of the Code.  
6.4    Option and SAR Term. The term of each Option (the “Option Term”) and the term of each Stock Appreciation Right (the “SAR Term”) shall be set by the Administrator in its sole discretion; provided, however, that the Option Term or SAR Term, as applicable, shall not be more than (a) ten (10) years from the date the Option or Stock Appreciation Right, as applicable, is granted to an Eligible Individual (other than, in the case of Incentive Stock Options, a Greater Than 10% Stockholder), or (b) five (5) years from the date an Incentive Stock Option is granted to a Greater Than 10% Stockholder. Except as limited by the requirements of Section 409A or Section 422 of the Code and regulations and rulings thereunder or the first sentence of this Section 6.4 and without limiting the Company’s rights under Section 11.7, the Administrator may extend the Option Term of any outstanding Option or the SAR Term of any outstanding Stock Appreciation Right, and may extend the time period during which vested Options or Stock Appreciation Rights may be exercised, in connection with any Termination of Service of the Holder or otherwise, and may amend, subject to Section 11.7 and 13.1, any other term or condition of such Option or Stock Appreciation Right relating to such Termination of Service of the Holder or otherwise.
6.5    Option and SAR Vesting.  The period during which the right to exercise, in whole or in part, an Option or Stock Appreciation Right vests in the Holder shall be set by the Administrator and set forth in the applicable Award Agreement. Unless otherwise determined by the Administrator in the Award Agreement, the applicable Program or by action of the Administrator following the grant of the Option or Stock Appreciation Right, (a) no portion of an Option or Stock Appreciation Right which is unexercisable at a Holder’s Termination of Service shall thereafter become exercisable and (b) the portion of an Option or Stock Appreciation Right that is unexercisable at a Holder’s Termination of Service shall automatically expire thirty (30) days following the date of a Termination of Service due to death or disability and on the date of any a Termination of Service for any other reason.
6.6    Substitution of Stock Appreciation Rights; Early Exercise of Options.  The Administrator may provide in the applicable Program or Award Agreement evidencing the grant of an Option that the Administrator, in its sole discretion, shall have the right to substitute a Stock Appreciation Right for such Option at any time prior to or upon exercise of such Option; provided that such Stock Appreciation Right shall be exercisable with respect to the same number of Shares for which such substituted Option would have been exercisable, and shall also have the same exercise price, vesting schedule and remaining term as the substituted Option. The Administrator may provide in the terms of an Award Agreement that the Holder may exercise an Option in whole or in part prior to the full vesting of the Option in exchange for unvested shares of Restricted Stock with respect to any unvested portion of the Option so exercised.  Shares of Restricted Stock acquired upon the exercise of any unvested portion of an Option shall be subject to such terms and conditions as the Administrator shall determine.
ARTICLE 7.
EXERCISE OF OPTIONS AND STOCK APPRECIATION RIGHTS
7.1    Exercise and Payment. An exercisable Option or Stock Appreciation Right may be exercised in whole or in part. However, an Option or Stock Appreciation Right shall not be exercisable with respect to fractional Shares and the Administrator may require that, by the terms of the Option or Stock Appreciation Right, a partial exercise must be with respect to a minimum number of Shares. Payment of the amounts payable with respect to Stock Appreciation Rights pursuant to this Article 7 shall be in cash, Shares (based on its Fair Market Value as of the date the Stock Appreciation Right is exercised), or a combination of both, as determined by the Administrator.

7.2    Manner of Exercise. Except as set forth in Section 7.3, all or a portion of an exercisable Option or Stock Appreciation Right shall be deemed exercised upon delivery of all of the following to the Secretary of the Company, the stock plan administrator of the Company or such other person or entity designated by the Administrator, or his, her or its office, as applicable:
(a)A written or electronic notice complying with the applicable rules established by the Administrator stating that the Option or Stock Appreciation Right, or a portion thereof, is exercised. The notice shall be signed or otherwise acknowledged electronically by the Holder or other person then entitled to exercise the Option or Stock Appreciation Right or such portion thereof;
(b)Such representations and documents as the Administrator, in its sole discretion, deems necessary or advisable to effect compliance with Applicable Law; 
(c)In the event that the Option shall be exercised pursuant to Section 11.3 by any person or persons other than the Holder, appropriate proof of the right of such person or persons to exercise the Option or Stock Appreciation Right, as determined in the sole discretion of the Administrator; and
(d)Full payment of the exercise price and applicable withholding taxes for the Shares with respect to which the Option or Stock Appreciation Right, or portion thereof, is exercised, in a manner permitted by the Administrator in accordance with Sections 11.1 and 11.2.
7.3    Expiration of Option Term or SAR Term: Automatic Exercise of In-The-Money Options and Stock Appreciation Rights. Unless otherwise provided by the Administrator in an Award Agreement or otherwise or as otherwise directed by an Option or Stock Appreciation Rights Holder in writing to the Company, each vested and exercisable Option and Stock Appreciation Right outstanding on the Automatic Exercise Date with an exercise price per Share that is less than the Fair Market Value per Share as of such date shall automatically and without further action by the Option or Stock Appreciation Rights Holder or the Company be exercised on the Automatic Exercise Date. In the sole discretion of the Administrator, payment of the exercise price of any such Option shall be made pursuant to Section 11.1(b) or 11.1(c) and the Company or any Subsidiary shall be entitled to deduct or withhold an amount sufficient to satisfy all taxes associated with such exercise in accordance with Section 11.2. Unless otherwise determined by the Administrator, this Section 7.3 shall not apply to an Option or Stock Appreciation Right if the Holder of such Option or Stock Appreciation Right incurs a Termination of Service on or before the Automatic Exercise Date. For the avoidance of doubt, no Option or Stock Appreciation Right with an exercise price per Share that is equal to or greater than the Fair Market Value per Share on the Automatic Exercise Date shall be exercised pursuant to this Section 7.3.
7.4    Notification Regarding Disposition. The Holder shall give the Company prompt written or electronic notice of any disposition of Shares acquired by exercise of an Incentive Stock Option which occurs within (a) two years from the date of granting (including the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code) such Option to such Holder, or (b) one year after the date of transfer of such Shares to such Holder. Such notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by the Holder in such disposition or other transfer.
 
 ARTICLE 8.
AWARD OF RESTRICTED STOCK
8.1    Award of Restricted Stock. The Administrator is authorized to grant Restricted Stock to Eligible Individuals, and shall determine the terms and conditions, including the restrictions applicable to each award of Restricted Stock, which terms and conditions shall not be inconsistent with the Plan or any applicable Program, and may impose such conditions on the issuance of such Restricted Stock as it deems appropriate. The Administrator shall establish the purchase price, if any, and form of payment for Restricted Stock; provided, however, that if a purchase price is charged, such purchase price shall be no less than the par value, if any, of the Shares to be purchased, unless otherwise permitted by Applicable Law. In all cases, legal consideration shall be required for each issuance of Restricted Stock to the extent required by Applicable Law.

8.2    Rights as Stockholders. Subject to Section 8.4, upon issuance of Restricted Stock, the Holder shall have, unless otherwise provided by the Administrator, all the rights of a stockholder with respect to said Shares, subject to the restrictions in the Plan, any applicable Program and/or the applicable Award Agreement, including the right to receive all dividends and other distributions paid or made with respect to the Shares to the extent such dividends and other distributions have a record date that is on or after the date on which the Holder to whom such Shares are granted becomes the record holder of such Restricted Stock; provided, however, that, in the sole discretion of the Administrator, any extraordinary distributions with respect to the Shares may be subject to the restrictions set forth in Section 8.3. In addition, with respect to a share of Restricted Stock with performance-based vesting, dividends which are paid prior to vesting shall only be paid out to the Holder to the extent that the performance-based vesting conditions are subsequently satisfied and the share of Restricted Stock vests.
8.3    Restrictions. All shares of Restricted Stock (including any shares received by Holders thereof with respect to shares of Restricted Stock as a result of stock dividends, stock splits or any other form of recapitalization) shall be subject to such restrictions and vesting requirements as the Administrator shall provide in the applicable Program or Award Agreement. By action taken after the Restricted Stock is issued, the Administrator may, on such terms and conditions as it may determine to be appropriate, accelerate the vesting of such Restricted Stock by removing any or all of the restrictions imposed by the terms of the applicable Program or Award Agreement.
8.4    Repurchase or Forfeiture of Restricted Stock. Except as otherwise determined by the Administrator, if no price was paid by the Holder for the Restricted Stock, upon a Termination of Service during the applicable restriction period, the Holder’s rights in unvested Restricted Stock then subject to restrictions shall lapse, and such Restricted Stock shall be surrendered to the Company and cancelled without consideration on the date of such Termination of Service. If a price was paid by the Holder for the Restricted Stock, upon a Termination of Service during the applicable restriction period, the Company shall have the right to repurchase from the Holder the unvested Restricted Stock then subject to restrictions at a cash price per share equal to the price paid by the Holder for such Restricted Stock or such other amount as may be specified in the applicable Program or Award Agreement. Notwithstanding the foregoing, the Administrator, in its sole discretion, may provide that upon certain events, including, without limitation, a Change in Control, the Holder’s death, retirement or disability or any other specified Termination of Service or any other event, the Holder’s rights in unvested Restricted Stock then subject to restrictions shall not lapse, such Restricted Stock shall vest and cease to be forfeitable and, if applicable, the Company shall cease to have a right of repurchase.
8.5    Section 83(b) Election. If a Holder makes an election under Section 83(b) of the Code to be taxed with respect to the Restricted Stock as of the date of transfer of the Restricted Stock rather than as of the date or dates upon which the Holder would otherwise be taxable under Section 83(a) of the Code, the Holder shall be required to deliver a copy of such election to the Company promptly after filing such election with the Internal Revenue Service along with proof of the timely filing thereof with the Internal Revenue Service.
ARTICLE 9.
AWARD OF RESTRICTED STOCK UNITS
9.1    Grant of Restricted Stock Units. The Administrator is authorized to grant Awards of Restricted Stock Units to any Eligible Individual selected by the Administrator in such amounts and subject to such terms and conditions as determined by the Administrator. 
9.2    Term. Except as otherwise provided herein, the term of a Restricted Stock Unit award shall be set by the Administrator in its sole discretion.
9.3    Purchase Price. The Administrator shall specify the purchase price, if any, to be paid by the Holder to the Company with respect to any Restricted Stock Unit award; provided, however, that value of the consideration shall not be less than the par value of a Share, unless otherwise permitted by Applicable Law.
9.4    Vesting of Restricted Stock Units. At the time of grant, the Administrator shall specify the date or dates on which the Restricted Stock Units shall become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate, including, without limitation, vesting based upon the Holder’s duration of service to the Company or any Subsidiary, one or more Performance Criteria, Company performance, individual performance or other specific criteria, in each case on a specified date or dates or over any period or periods, as determined by the Administrator. 

9.5    Maturity and Payment. At the time of grant, the Administrator shall specify the maturity date applicable to each grant of Restricted Stock Units, which shall be no earlier than the vesting date or dates of the Award and may be determined at the election of the Holder (if permitted by the applicable Award Agreement); provided that, except as otherwise determined by the Administrator, and subject to compliance with Section 409A, in no event shall the maturity date relating to each Restricted Stock Unit occur following the later of (a) the 15th day of the third month following the end of calendar year in which the applicable portion of the Restricted Stock Unit vests; or (b) the 15th day of the third month following the end of the Company’s fiscal year in which the applicable portion of the Restricted Stock Unit vests. On the maturity date, the Company shall, in accordance with the applicable Award Agreement and subject to Section 11.4(f), transfer to the Holder one unrestricted, fully transferable Share for each Restricted Stock Unit scheduled to be paid out on such date and not previously forfeited, or in the sole discretion of the Administrator, an amount in cash equal to the Fair Market Value of such Shares on the maturity date or a combination of cash and Common Stock as determined by the Administrator. 
9.6    Payment upon Termination of Service. An Award of Restricted Stock Units shall only be payable while the Holder is an Employee, a Consultant or a member of the Board, as applicable; provided, however, that the Administrator, in its sole discretion, may provide (in an Award Agreement or otherwise) that a Restricted Stock Unit award may be paid subsequent to a Termination of Service in certain events, including a Change in Control, the Holder’s death, retirement or disability or any other specified Termination of Service.
ARTICLE 10.
AWARD OF OTHER STOCK OR CASH BASED AWARDS AND DIVIDEND EQUIVALENTS
10.1    Other Stock or Cash Based Awards.  The Administrator is authorized to (a) grant Other Stock or Cash Based Awards, including awards entitling a Holder to receive Shares or cash to be delivered immediately or in the future, to any Eligible Individual and (b) determine whether such Other Stock or Cash Based Awards shall be Performance-Based Compensation. Subject to the provisions of the Plan and any applicable Program, the Administrator shall determine the terms and conditions of each Other Stock or Cash Based Award, including the term of the Award, any exercise or purchase price, performance goals, including the Performance Criteria, transfer restrictions, vesting conditions and other terms and conditions applicable thereto, which shall be set forth in the applicable Award Agreement. Other Stock or Cash Based Awards may be paid in cash, Shares, or a combination of cash and Shares, as determined by the Administrator, and may be available as a form of payment in the settlement of other Awards granted under the Plan, as stand-alone payments, as a part of a bonus, deferred bonus, deferred compensation or other arrangement, and/or as payment in lieu of compensation to which an Eligible Individual is otherwise entitled.
10.2    Dividend Equivalents. Dividend Equivalents may be granted by the Administrator, either alone or in tandem with another Award, based on dividends declared on the Common Stock, to be credited as of dividend payment dates during the period between the date the Dividend Equivalents are granted to a Holder and the date such Dividend Equivalents terminate or expire, as determined by the Administrator. Such Dividend Equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such restrictions and limitations as may be determined by the Administrator. In addition, Dividend Equivalents with respect to an Award with performance-based vesting that are based on dividends paid prior to the vesting of such Award shall only be paid out to the Holder to the extent that the performance-based vesting conditions are subsequently satisfied and the Award vests. Notwithstanding the foregoing, no Dividend Equivalents shall be payable with respect to Options or Stock Appreciation Rights.

ARTICLE 11.
ADDITIONAL TERMS OF AWARDS
11.1    Payment. The Administrator shall determine the method or methods by which payments by any Holder with respect to any Awards granted under the Plan shall be made, including, without limitation: (a) cash or check, (b) Shares (including, in the case of payment of the exercise price of an Award, Shares issuable pursuant to the exercise of the Award) held for any minimum period of time as may be established by the Administrator having a Fair Market Value on the date of delivery equal to the aggregate payments required, (c) delivery of a written or electronic notice that the Holder has placed a market sell order with a broker acceptable to the Company with respect to Shares then issuable upon exercise or vesting of an Award, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate payments required; provided that payment of such proceeds is then made to the Company upon settlement of such sale, (d) other form of legal consideration acceptable to the Administrator in its sole discretion, or (e) any combination of the above permitted forms of payment. Notwithstanding any other provision of the Plan to the contrary, no Holder who is a Director or an “executive officer” of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to make payment with respect to any Awards granted under the Plan, or continue any extension of credit with respect to such payment, with a loan from the Company or a loan arranged by the Company in violation of Section 13(k) of the Exchange Act.
11.2    Tax Withholding. The Company or any Subsidiary shall have the authority and the right to deduct or withhold, or require a Holder to remit to the Company, an amount sufficient to satisfy federal, state, local and foreign taxes (including the Holder’s FICA, employment tax or other social security contribution obligation) required by law to be withheld with respect to any taxable event concerning a Holder arising as a result of the Plan or any Award. The Administrator may, in its sole discretion and in satisfaction of the foregoing requirement, allow a Holder to satisfy such obligations by any payment means described in Section 11.1 hereof, including without limitation, by allowing such Holder to have the Company or any Subsidiary withhold Shares otherwise issuable under an Award (or allow the surrender of Shares). The number of Shares which may be so withheld or surrendered shall be no greater than the number of Shares which have a fair market value on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income (or such other number as would not result in adverse financial accounting consequences for the Company or any of its Subsidiaries). The Administrator shall determine the fair market value of the Shares, consistent with applicable provisions of the Code, for tax withholding obligations due in connection with a broker-assisted cashless Option or Stock Appreciation Right exercise involving the sale of Shares to pay the Option or Stock Appreciation Right exercise price or any tax withholding obligation.
11.3    Transferability of Awards.
(a)Except as otherwise provided in Sections 11.3(b) and 11.3(c):
(i)No Award under the Plan may be sold, pledged, assigned or transferred in any manner other than (A) by will or the laws of descent and distribution or (B) subject to the consent of the Administrator, pursuant to a DRO, unless and until such Award has been exercised or the Shares underlying such Award have been issued, and all restrictions applicable to such Shares have lapsed;
(ii)No Award or interest or right therein shall be liable for or otherwise subject to the debts, contracts or engagements of the Holder or the Holder’s successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy) unless and until such Award has been exercised, or the Shares underlying such Award have been issued, and all restrictions applicable to such Shares have lapsed, and any attempted disposition of an Award prior to satisfaction of these conditions shall be null and void and of no effect, except to the extent that such disposition is permitted by Section 11.3(a)(i); and
(iii)During the lifetime of the Holder, only the Holder may exercise any exercisable portion of an Award granted to such Holder under the Plan, unless it has been disposed of pursuant to a DRO.  After the death of the Holder, any exercisable portion of an Award may, prior to the time when such portion becomes unexercisable under the Plan or the applicable Program or Award Agreement, be exercised by the Holder’s personal representative or by any person empowered to do so under the deceased Holder’s will or under the then-applicable laws of descent and distribution.
(b)Notwithstanding Section 11.3(a), the Administrator, in its sole discretion, may determine to permit a Holder or a Permitted Transferee of such Holder to transfer an Award other than an Incentive Stock Option (unless such Incentive Stock Option is intended to become a Nonqualified Stock Option) to any one or more Permitted Transferees of such Holder, subject 

to the following terms and conditions: (i) an Award transferred to a Permitted Transferee shall not be assignable or transferable by the Permitted Transferee other than (A) to another Permitted Transferee of the applicable Holder or (B) by will or the laws of descent and distribution or, subject to the consent of the Administrator, pursuant to a DRO; (ii) an Award transferred to a Permitted Transferee shall continue to be subject to all the terms and conditions of the Award as applicable to the original Holder (other than the ability to further transfer the Award to any Person other than another Permitted Transferee of the applicable Holder); and (iii) the Holder (or transferring Permitted Transferee) and the receiving Permitted Transferee shall execute any and all documents requested by the Administrator, including, without limitation documents to (A) confirm the status of the transferee as a Permitted Transferee, (B) satisfy any requirements for an exemption for the transfer under Applicable Law and (C) evidence the transfer.  In addition, and further notwithstanding Section 11.3(a), hereof, the Administrator, in its sole discretion, may determine to permit a Holder to transfer Incentive Stock Options to a trust that constitutes a Permitted Transferee if, under Section 671 of the Code and other Applicable Law, the Holder is considered the sole beneficial owner of the Incentive Stock Option while it is held in the trust.  
(c)Notwithstanding Section 11.3(a), a Holder may, in the manner determined by the Administrator, designate a beneficiary to exercise the rights of the Holder and to receive any distribution with respect to any Award upon the Holder’s death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Program or Award Agreement applicable to the Holder and any additional restrictions deemed necessary or appropriate by the Administrator. If the Holder is married or a domestic partner in a domestic partnership qualified under Applicable Law and resides in a community property state, a designation of a person other than the Holder’s spouse or domestic partner, as applicable, as the Holder’s beneficiary with respect to more than 50% of the Holder’s interest in the Award shall not be effective without the prior written or electronic consent of the Holder’s spouse or domestic partner. If no beneficiary has been designated or survives the Holder, payment shall be made to the person entitled thereto pursuant to the Holder’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Holder at any time; provided that the change or revocation is delivered in writing to the Administrator prior to the Holder’s death.
11.4    Conditions to Issuance of Shares.
(a)The Administrator shall determine the methods by which Shares shall be delivered or deemed to be delivered to Holders. Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates or make any book entries evidencing Shares pursuant to the exercise of any Award, unless and until the Administrator has determined, with advice of counsel, that the issuance of such Shares is in compliance with Applicable Law and the Shares are covered by an effective registration statement or applicable exemption from registration. In addition to the terms and conditions provided herein, the Administrator may require that a Holder make such reasonable covenants, agreements and representations as the Administrator, in its sole discretion, deems advisable in order to comply with Applicable Law.
(b)All share certificates delivered pursuant to the Plan and all Shares issued pursuant to book entry procedures are subject to any stop-transfer orders and other restrictions as the Administrator deems necessary or advisable to comply with Applicable Law. The Administrator may place legends on any share certificate or book entry to reference restrictions applicable to the Shares (including, without limitation, restrictions applicable to Restricted Stock).
(c)The Administrator shall have the right to require any Holder to comply with any timing or other restrictions with respect to the settlement, distribution or exercise of any Award, including a window-period limitation, as may be imposed in the sole discretion of the Administrator.
(d)No fractional Shares shall be issued and the Administrator, in its sole discretion, shall determine whether cash shall be given in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding down.
(e)The Company, in its sole discretion, may (i) retain physical possession of any stock certificate evidencing Shares until any restrictions thereon shall have lapsed and/or (ii) require that the stock certificates evidencing such Shares be held in custody by a designated escrow agent (which may but need not be the Company) until the restrictions thereon shall have lapsed, and that the Holder deliver a stock power, endorsed in blank, relating to such Shares.

(f)Notwithstanding any other provision of the Plan, unless otherwise determined by the Administrator or required by Applicable Law, the Company shall not deliver to any Holder certificates evidencing Shares issued in connection with any Award and instead such Shares shall be recorded in the books of the Company (or, as applicable, its transfer agent or stock plan administrator).
11.5    Forfeiture and Claw-Back Provisions. All Awards (including any proceeds, gains or other economic benefit actually or constructively received by a Holder upon any receipt or exercise of any Award or upon the receipt or resale of any Shares underlying the Award and any payments of a portion of an incentive-based bonus pool allocated to a Holder) shall be subject to the provisions of any claw-back policy implemented by the Company, including, without limitation, any claw-back policy adopted to comply with the requirements of Applicable Law, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder, whether or not such claw-back policy was in place at the time of grant of an Award, to the extent set forth in such claw-back policy and/or in the applicable Award Agreement.
11.6    Prohibition on Repricing. Subject to Section 13.2, the Administrator shall not, without the approval of the stockholders of the Company, (a) authorize the amendment of any outstanding Option or Stock Appreciation Right to reduce its price per Share, or (b) cancel any Option or Stock Appreciation Right in exchange for cash or another Award when the Option or Stock Appreciation Right price per Share exceeds the Fair Market Value of the underlying Shares. Furthermore, for purposes of this Section 11.6, except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares), the terms of outstanding Awards may not be amended to reduce the exercise price per Share of outstanding Options or Stock Appreciation Rights or cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other Awards or Options or Stock Appreciation Rights with an exercise price per Share that is less than the exercise price per Share of the original Options or Stock Appreciation Rights without the approval of the stockholders of the Company.
11.7    Amendment of Awards.  Subject to Applicable Law, the Administrator may amend, modify or terminate any outstanding Award, including but not limited to, substituting therefor another Award of the same or a different type, changing the date of exercise or settlement, and converting an Incentive Stock Option to a Non-Qualified Stock Option.  The Holder’s consent to such action shall be required unless (a) the Administrator determines that the action, taking into account any related action, would not materially and adversely affect the Holder, or (b) the change is otherwise permitted under the Plan (including, without limitation, under Section 13.2 or 13.10).
11.8    Data Privacy.  As a condition of receipt of any Award, each Holder explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal data as described in this Section 11.8 by and among, as applicable, the Company and its Subsidiaries for the exclusive purpose of implementing, administering and managing the Holder’s participation in the Plan.  The Company and its Subsidiaries may hold certain personal information about a Holder, including but not limited to, the Holder’s name, home address and telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job title(s), any shares of stock held in the Company or any of its Subsidiaries, details of all Awards, in each case, for the purpose of implementing, managing and administering the Plan and Awards (the “Data”).  The Company and its Subsidiaries may transfer the Data amongst themselves as necessary for the purpose of implementation, administration and management of a Holder’s participation in the Plan, and the Company and its Subsidiaries may each further transfer the Data to any third parties assisting the Company and its Subsidiaries in the implementation, administration and management of the Plan.  These recipients may be located in the Holder’s country, or elsewhere, and the Holder’s country may have different data privacy laws and protections than the recipients’ country.  Through acceptance of an Award, each Holder authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Holder’s participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Company or any of its Subsidiaries or the Holder may elect to deposit any Shares.  The Data related to a Holder will be held only as long as is necessary to implement, administer, and manage the Holder’s participation in the Plan.  A Holder may, at any time, view the Data held by the Company with respect to such Holder, request additional information about the storage and processing of the Data with respect to such Holder, recommend any necessary corrections to the Data with respect to the Holder or refuse or withdraw the consents herein in writing, in any case without cost, by contacting his or her local human resources representative.  The Company may cancel Holder’s ability to participate in the Plan and, in the Administrator’s discretion, the Holder may forfeit any outstanding Awards if the Holder refuses or withdraws his or her consents as described herein.  For more information on the consequences of refusal to consent or withdrawal of consent, Holders may contact their local human resources representative.
ARTICLE 12.
ADMINISTRATION

12.1    Administrator. The Committee shall administer the Plan (except as otherwise permitted herein). To the extent necessary to comply with Rule 16b-3 of the Exchange Act, and with respect to Awards that are intended to be Performance-Based Compensation, including Options and Stock Appreciation Rights, then the Committee shall take all action with respect to such Awards, and the individuals taking such action shall consist solely of two or more Non-Employee Directors, each of whom is intended to qualify as both a “non-employee director” as defined by Rule 16b-3 of the Exchange Act or any successor rule and an “outside director” for purposes of Section 162(m) of the Code. Additionally, to the extent required by Applicable Law, each of the individuals constituting the Committee shall be an “independent director” under the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded. Notwithstanding the foregoing, any action taken by the Committee shall be valid and effective, whether or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership set forth in this Section 12.1 or the Organizational Documents.  Except as may otherwise be provided in the Organizational Documents or as otherwise required by Applicable Law, (a) appointment of Committee members shall be effective upon acceptance of appointment, (b) Committee members may resign at any time by delivering written or electronic notice to the Board and (c) vacancies in the Committee may only be filled by the Board.  Notwithstanding the foregoing, (i) the full Board, acting by a majority of its members in office, shall conduct the general administration of the Plan with respect to Awards granted to Non-Employee Directors and, with respect to such Awards, the terms “Administrator” as used in the Plan shall be deemed to refer to the Board and (ii) the Board or Committee may delegate its authority hereunder to the extent permitted by Section 12.6.
12.2    Duties and Powers of Administrator. It shall be the duty of the Administrator to conduct the general administration of the Plan in accordance with its provisions. The Administrator shall have the power to interpret the Plan, all Programs and Award Agreements, and to adopt such rules for the administration, interpretation and application of the Plan and any Program as are not inconsistent with the Plan, to interpret, amend or revoke any such rules and to amend the Plan or any Program or Award Agreement; provided that the rights or obligations of the Holder of the Award that is the subject of any such Program or Award Agreement are not materially and adversely affected by such amendment, unless the consent of the Holder is obtained or such amendment is otherwise permitted under Section 11.5 or Section 13.10. In its sole discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee in its capacity as the Administrator under the Plan except with respect to matters which under Rule 16b‐3 under the Exchange Act or any successor rule, or Section 162(m) of the Code, or any regulations or rules issued thereunder, or the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded are required to be determined in the sole discretion of the Committee. 
12.3    Action by the Administrator. Unless otherwise established by the Board, set forth in any Organizational Documents or as required by Applicable Law, a majority of the Administrator shall constitute a quorum and the acts of a majority of the members present at any meeting at which a quorum is present, and acts approved in writing by all members of the Administrator in lieu of a meeting, shall be deemed the acts of the Administrator. Each member of the Administrator is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Subsidiary, the Company’s independent certified public accountants, or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan.
12.4    Authority of Administrator. Subject to the Organizational Documents, any specific designation in the Plan and Applicable Law, the Administrator has the exclusive power, authority and sole discretion to:
(a)Designate Eligible Individuals to receive Awards;
(b)Determine the type or types of Awards to be granted to each Eligible Individual (including, without limitation, any Awards granted in tandem with another Award granted pursuant to the Plan);
(c)Determine the number of Awards to be granted and the number of Shares to which an Award will relate;
(d)Determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the exercise price, grant price, purchase price, any Performance Criteria or performance criteria, any restrictions or limitations on the Award, any schedule for vesting, lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and accelerations or waivers thereof, and any provisions related to non-competition and claw-back and recapture of gain on an Award, based in each case on such considerations as the Administrator in its sole discretion determines;
(e)Determine whether, to what extent, and under what circumstances an Award may be settled in, or the exercise price of an Award may be paid in cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;
(f)Prescribe the form of each Award Agreement, which need not be identical for each Holder;

(g)Decide all other matters that must be determined in connection with an Award;
(h)Establish, adopt, or revise any Programs, rules and regulations as it may deem necessary or advisable to administer the Plan;
(i)Interpret the terms of, and any matter arising pursuant to, the Plan, any Program or any Award Agreement; 
(j)Make all other decisions and determinations that may be required pursuant to the Plan or as the Administrator deems necessary or advisable to administer the Plan; and
(k)Accelerate wholly or partially the vesting or lapse of restrictions of any Award or portion thereof at any time after the grant of an Award, subject to whatever terms and conditions it selects and Section 13.2.
12.5    Decisions Binding. The Administrator’s interpretation of the Plan, any Awards granted pursuant to the Plan, any Program or any Award Agreement and all decisions and determinations by the Administrator with respect to the Plan are final, binding and conclusive on all Persons.
12.6    Delegation of Authority. The Board or Committee may from time to time delegate to a committee of one or more members of the Board or one or more officers of the Company the authority to grant or amend Awards or to take other administrative actions pursuant to this Article 12; provided, however, that in no event shall an officer of the Company be delegated the authority to grant Awards to, or amend Awards held by, the following individuals: (a) individuals who are subject to Section 16 of the Exchange Act, (b) Covered Employees with respect to Awards intended to constitute Performance Based Compensation, or (c) officers of the Company (or Directors) to whom authority to grant or amend Awards has been delegated hereunder; provided, further, that any delegation of administrative authority shall only be permitted to the extent it is permissible under any Organizational Documents and Applicable Law (including, without limitation, Section 162(m) of the Code). Any delegation hereunder shall be subject to the restrictions and limits that the Board or Committee specifies at the time of such delegation or that are otherwise included in the applicable Organizational Documents, and the Board or Committee, as applicable, may at any time rescind the authority so delegated or appoint a new delegatee. At all times, the delegatee appointed under this Section 12.6 shall serve in such capacity at the pleasure of the Board or the Committee, as applicable, and the Board or the Committee may abolish any committee at any time and re-vest in itself any previously delegated authority.
ARTICLE 13.
MISCELLANEOUS PROVISIONS
13.1    Amendment, Suspension or Termination of the Plan. 
(a)Except as otherwise provided in Section 13.1(b), the Plan may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Board; provided that, except as provided in Section 11.5 and Section 13.10, no amendment, suspension or termination of the Plan shall, without the consent of the Holder, materially and adversely affect any rights or obligations under any Award theretofore granted or awarded, unless the Award itself otherwise expressly so provides. 
(b)Notwithstanding Section 13.1(a), the Board may not, except as provided in Section 13.2, take any of the following actions without approval of the Company’s stockholders given within twelve (12) months before or after such action: (i) increase the limit imposed in Section 3.1 on the maximum number of Shares which may be issued under the Plan or the Award Limit, (ii) reduce the price per share of any outstanding Option or Stock Appreciation Right granted under the Plan or take any action prohibited under Section 11.6, or (iii) cancel any Option or Stock Appreciation Right in exchange for cash or another Award in violation of Section 11.6.
(c)No Awards may be granted or awarded during any period of suspension or after termination of the Plan, and notwithstanding anything herein to the contrary, in no event may any Award be granted under the Plan after the tenth (10th) anniversary of the earlier of (i) the date on which the Plan was adopted by the Board or (ii) the date the Plan was approved by the Company’s stockholders (such anniversary, the “Expiration Date”). Any Awards that are outstanding on the Expiration Date shall remain in force according to the terms of the Plan, the applicable Program and the applicable Award Agreement.

13.2    Changes in Common Stock or Assets of the Company, Acquisition or Liquidation of the Company and Other Corporate Events.
(a)In the event of any stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other change affecting the shares of the Company’s stock or the share price of the Company’s stock other than an Equity Restructuring, the Administrator may make equitable adjustments, if any, to reflect such change with respect to: (i) the aggregate number and kind of Shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Section 3.1 on the maximum number and kind of Shares which may be issued under the Plan, and adjustments of the Award Limit ); (ii) the number and kind of Shares (or other securities or property) subject to outstanding Awards; (iii) the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect thereto); (iv) the grant or exercise price per share for any outstanding Awards under the Plan; and (v) the number and kind of Shares (or other securities or property) for which automatic grants are subsequently to be made to new and continuing Non-Employee Directors pursuant to Section 4.6. Any adjustment affecting an Award intended as Performance-Based Compensation shall be made consistent with the requirements of Section 162(m) of the Code unless otherwise determined by the Administrator.
(b)In the event of any transaction or event described in Section 13.2(a) or any unusual or nonrecurring transactions or events affecting the Company, any Subsidiary of the Company, or the financial statements of the Company or any Subsidiary, or of changes in Applicable Law or Applicable Accounting Standards, the Administrator, in its sole discretion, and on such terms and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence of such transaction or event, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to any Award under the Plan, to facilitate such transactions or events or to give effect to such changes in Applicable Law or Applicable Accounting Standards:
(i)To provide for the termination of any such Award in exchange for an amount of cash and/or other property with a value equal to the amount that would have been attained upon the exercise of such Award or realization of the Holder’s rights (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction or event described in this Section 13.2 the Administrator determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Holder’s rights, then such Award may be terminated by the Company without payment);
(ii)To provide that such Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and applicable exercise or purchase price, in all cases, as determined by the Administrator;
(iii)To make adjustments in the number and type of Shares of the Company’s stock (or other securities or property) subject to such Awards, and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding Awards and Awards which may be granted in the future; 
(iv)To provide that such Award shall be exercisable or payable or fully vested with respect to all Shares covered thereby, notwithstanding anything to the contrary in the Plan or the applicable Program or Award Agreement; 
(v)To replace such Award with other rights or property selected by the Administrator; and/or
(vi)To provide that the Award cannot vest, be exercised or become payable after such event.

(c)In connection with the occurrence of any Equity Restructuring, and notwithstanding anything to the contrary in Sections 13.2(a) and 13.2(b):
(i)    The number and type of securities subject to each outstanding Award and the exercise price or grant price thereof, if applicable, shall be equitably adjusted (and the adjustments provided under this Section 13.2(c)(i) shall be nondiscretionary and shall be final and binding on the affected Holder and the Company); and/or 
(ii)    The Administrator shall make such equitable adjustments, if any, as the Administrator, in its sole discretion, may deem appropriate to reflect such Equity Restructuring with respect to the aggregate number and kind of Shares that may be issued under the Plan (including, but not limited to, adjustments of the limitation in Section 3.1 on the maximum number and kind of Shares which may be issued under the Plan, and adjustments of the Award Limit,). 
(d)    Notwithstanding any other provision of the Plan, in the event of a Change in Control, unless the Administrator elects to (i) terminate an Award in exchange for cash, rights or property, or (ii) cause an Award to become fully exercisable and no longer subject to any forfeiture restrictions prior to the consummation of a Change in Control, pursuant to Section 13.2, (A) such Award (other than any portion subject to performance-based vesting) shall continue in effect or be assumed or an equivalent Award substituted by the successor corporation or a parent or subsidiary of the successor corporation and (B) the portion of such Award subject to performance-based vesting shall be subject to the terms and conditions of the applicable Award Agreement and, in the absence of applicable terms and conditions, the Administrator’s discretion. In the event an Award continues in effect or is assumed or an equivalent Award substituted, and a Holder incurs a Termination of Service without “cause” (as such term is defined in the sole discretion of the Administrator, or as set forth in the Award Agreement relating to such Award) upon or within twelve (12) months following the Change in Control, then such Holder shall be fully vested in such continued, assumed or substituted Award.
(e)    In the event that the successor corporation in a Change in Control refuses to assume or substitute for an Award (other than any portion subject to performance-based vesting), the Administrator may cause (i) any or all of such Award (or portion thereof) to terminate in exchange for cash, rights or other property pursuant to Section 13.2(b)(i) or (ii) any or all of such Award (or portion thereof) to become fully exercisable immediately prior to the consummation of such transaction and all forfeiture restrictions on any or all of such Award to lapse. If any such Award is exercisable in lieu of assumption or substitution in the event of a Change in Control, the Administrator shall notify the Holder that such Award shall be fully exercisable for a period of fifteen (15) days from the date of such notice, contingent upon the occurrence of the Change in Control, and such Award shall terminate upon the expiration of such period.
(f)    For the purposes of this Section 13.2, an Award shall be considered assumed if, following the Change in Control, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities or property) received in the Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Change in Control was not solely common stock of the successor corporation or its parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Award, for each Share subject to an Award, to be solely common stock of the successor corporation or its parent equal in fair market value to the per-share consideration received by holders of Common Stock in the Change in Control.
(g)    The Administrator, in its sole discretion, may include such further provisions and limitations in any Award, agreement or certificate, as it may deem equitable and in the best interests of the Company that are not inconsistent with the provisions of the Plan.
(h)    Unless otherwise determined by the Administrator, no adjustment or action described in this Section 13.2 or in any other provision of the Plan shall be authorized to the extent it would (i) with respect to Awards which are granted to Covered Employees and are intended to qualify as Performance-Based Compensation, cause such Awards to fail to so qualify as Performance-Based Compensation, (ii) cause the Plan to violate Section 422(b)(1) of the Code, (iii) result in short-swing profits liability under Section 16 of the Exchange Act or violate the exemptive conditions of Rule 16b-3 of the Exchange Act, or (iv) cause an Award to fail to be exempt from or comply with Section 409A. 

(i)    The existence of the Plan, any Program, any Award Agreement and/or the Awards granted hereunder shall not affect or restrict in any way the right or power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
(j)     In the event of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other change affecting the Shares or the share price of the Common Stock including any Equity Restructuring, for reasons of administrative convenience, the Administrator, in its sole discretion, may refuse to permit the exercise of any Award during a period of up to thirty (30) days prior to the consummation of any such transaction.
13.3    Approval of Plan by Stockholders. The Plan shall be submitted for the approval of the Company’s stockholders within twelve (12) months after the date of the Board’s initial adoption of the Plan. 
13.4    No Stockholders Rights. Except as otherwise provided herein or in an applicable Program or Award Agreement, a Holder shall have none of the rights of a stockholder with respect to Shares covered by any Award until the Holder becomes the record owner of such Shares.
13.5    Paperless Administration. In the event that the Company establishes, for itself or using the services of a third party, an automated system for the documentation, granting or exercise of Awards, such as a system using an internet website or interactive voice response, then the paperless documentation, granting or exercise of Awards by a Holder may be permitted through the use of such an automated system.
13.6    Effect of Plan upon Other Compensation Plans. The adoption of the Plan shall not affect any other compensation or incentive plans in effect for the Company or any Subsidiary. Nothing in the Plan shall be construed to limit the right of the Company or any Subsidiary: (a) to establish any other forms of incentives or compensation for Employees, Directors or Consultants of the Company or any Subsidiary, or (b) to grant or assume options or other rights or awards otherwise than under the Plan in connection with any proper corporate purpose including without limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any corporation, partnership, limited liability company, firm or association.
13.7    Compliance with Laws. The Plan, the granting and vesting of Awards under the Plan and the issuance and delivery of Shares and the payment of money under the Plan or under Awards granted or awarded hereunder are subject to compliance with all Applicable Law (including but not limited to state, federal and foreign securities law and margin requirements), and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. Any securities delivered under the Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all Applicable Law. The Administrator, in its sole discretion, may take whatever actions it deems necessary or appropriate to effect compliance with Applicable Law, including, without limitation, placing legends on share certificates and issuing stop-transfer notices to agents and registrars.  Notwithstanding anything to the contrary herein, the Administrator may not take any actions hereunder, and no Awards shall be granted, that would violate Applicable Law. To the extent permitted by Applicable Law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to Applicable Law.
13.8    Titles and Headings, References to Sections of the Code or Exchange Act. The titles and headings of the Sections in the Plan are for convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. References to sections of the Code or the Exchange Act shall include any amendment or successor thereto.
13.9    Governing Law. The Plan and any Programs and Award Agreements hereunder shall be administered, interpreted and enforced under the internal laws of the State of Delaware without regard to conflicts of laws thereof or of any other jurisdiction.

13.10    Section 409A. To the extent that the Administrator determines that any Award granted under the Plan is subject to Section 409A, the Plan, the Program pursuant to which such Award is granted and the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A. In that regard, to the extent any Award under the Plan or any other compensatory plan or arrangement of the Company or any of its Subsidiaries is subject to Section 409A, and such Award or other amount is payable on account of a Participant’s Termination of Service (or any similarly defined term), then (a) such Award or amount shall only be paid to the extent such Termination of Service qualifies as a “separation from service” as defined in Section 409A, and (b) if such Award or amount is payable to a “specified employee” as defined in Section 409A then to the extent required in order to avoid a prohibited distribution under Section 409A, such Award or other compensatory payment shall not be payable prior to the earlier of (i) the expiration of the six-month period measured from the date of the Participant’s Termination of Service, or (ii) the date of the Participant’s death.   To the extent applicable, the Plan, the Program and any Award Agreements shall be interpreted in accordance with Section 409A. Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the Administrator determines that any Award may be subject to Section 409A, the Administrator may (but is not obligated to), without a Holder’s consent, adopt such amendments to the Plan and the applicable Program and Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (A) exempt the Award from Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (B) comply with the requirements of Section 409A and thereby avoid the application of any penalty taxes under Section 409A. The Company makes no representations or warranties as to the tax treatment of any Award under Section 409A or otherwise.  The Company shall have no obligation under this Section 13.10 or otherwise to take any action (whether or not described herein) to avoid the imposition of taxes, penalties or interest under Section 409A with respect to any Award and shall have no liability to any Holder or any other person if any Award, compensation or other benefits under the Plan are determined to constitute non-compliant, “nonqualified deferred compensation” subject to the imposition of taxes, penalties and/or interest under Section 409A.
13.11    Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Holder pursuant to an Award, nothing contained in the Plan or any Program or Award Agreement shall give the Holder any rights that are greater than those of a general creditor of the Company or any Subsidiary.
13.12    Indemnification. To the extent permitted under Applicable Law and the Organizational Documents, each member of the Administrator shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or proceeding against him or her; provided he or she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Organizational Documents, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.
13.13    Relationship to other Benefits. No payment pursuant to the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary except to the extent otherwise expressly provided in writing in such other plan or an agreement thereunder.
13.14    Expenses. The expenses of administering the Plan shall be borne by the Company and its Subsidiaries.
* * * * *
I hereby certify that the Plan was initially duly adopted by the Board of Directors of Novan, Inc. on April 13, 2016 and approved by the stockholders of Novan, Inc. on August 31, 2016.
* * * * *
I hereby certify that the Plan was first amended and restated by the Board of Directors of Novan, Inc. on April 7, 2017 and subsequently approved by the stockholders of Novan, Inc. on June 5, 2017.
* * * * *
I hereby certify that the foregoing Plan, as amended and restated above, was duly adopted by the Board of Directors of Novan, Inc. on August 16, 2018.

I hereby certify that the foregoing Plan, as amended and restated, was approved by the stockholders of Novan, Inc. on July 31, 2019.
Executed on this 31st day of July, 2019.

	
		
	 
	/s/ John M. Gay

	 
	Corporate Secretary

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