Document:

slgd-ex101_144.htm

EXHIBIT 10.1

SECOND AMENDMENT TO
CREDIT AGREEMENT

THIS SECOND AMENDMENT to Credit Agreement (this “Amendment”) is entered into this 9th day of May 2019, by and between JPMORGAN CHASE BANK, N.A. (“Lender”), and SCOTT’S LIQUID GOLD-INC., a Colorado corporation, and NEOTERIC COSMETICS, INC., a Colorado corporation (each a “Borrower” and collectively, the “Borrowers”).

RECITALS

A.Lender and Borrowers have entered into that certain Credit Agreement dated as of June 30, 2016, as amended by a First Amendment to Credit Agreement, dated January 10, 2018 (as the same may from time to time be further amended, modified, supplemented or restated, the “Credit Agreement”).

B.Lender has extended credit to Borrowers for the purposes permitted in the Credit Agreement.

C.Borrowers have requested that Lender amend the Credit Agreement to (i) extend the Revolving Commitment Maturity Date and (ii) make certain other revisions to the Credit Agreement as more fully set forth herein.

D.Lender has agreed to so amend certain provisions of the Credit Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

Agreement

Now, Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Credit Agreement.

2.Amendments to Credit Agreement.

2.1The definitions of “Revolving Commitment Eurodollar Spread,” “Revolving Credit Maturity Date”, and “Term Loan Eurodollar Spread” in Section 1.01 of the Credit Agreement are hereby deleted in their entirety and replaced with the following:

“Revolving Commitment Eurodollar Spread” means 2.25%.

 

“Revolving Credit Maturity Date” means June 30, 2021 (if the same is a Business Day, or if not then the immediately next succeeding Business Day), or any earlier date on which the Revolving Commitment is reduced to zero or otherwise terminated pursuant to the terms hereof.

 

 “Term Loan Eurodollar Spread” means 2.25%.

 

2.2Section 2.10(a) of the Credit Agreement is hereby amended, in part, to delete the percentage “0.5%” and replace it with the percentage “0.25%”, therein.

	
 
	
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2.3Notwithstanding anything to the contrary in the Credit Agreement, for purposes of calculating the financial covenants set forth in Section 6.12 thereof, the effects of FASB ASC 842 on operating leases shall be disregarded. For purposes hereof, the term “FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board.

3.Limitation of Amendments.

3.1The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Lender may now have or may have in the future under or in connection with any Loan Document.

3.2This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

4.Representations and Warranties.  To induce Lender to enter into this Amendment, each Borrower hereby represents and warrants to Lender, jointly and severally, as follows:

4.1Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct in all material respects as of such date), and (b) no Event of Default has occurred and is continuing;

4.2Borrower has the organizational power and authority to execute and deliver this Amendment and to perform its obligations under the Credit Agreement, as amended by this Amendment;

4.3The organizational documents of Borrower previously delivered to Lender remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

4.4The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Credit Agreement, as amended by this Amendment, have been duly authorized by all necessary organizational actions on the part of Borrower;  

4.5The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Credit Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 

4.6The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Credit Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on either Borrower, except as already has been obtained or made; and

	
 
	
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4.7This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

5.Counterparts; Delivery.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Amendment by fax, emailed pdf. or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Amendment; provided, however, that, notwithstanding the foregoing, Borrower will deliver an original counterpart to this Amendment to Lender within five (5) Business Days following the date hereof.

6.Effectiveness.  This Amendment shall be deemed effective when it has been executed by Lender and when Lender has received counterparts hereof executed by each other party hereto.

 

	
 
	
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EXHIBIT 10.1

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

BORROWERS:

 

SCOTT’S LIQUID GOLD-INC.,

a Colorado corporation

 

		
	
By:
	
/s/ Kevin A. Paprzycki

	
Name:
	
Kevin A. Paprzycki

	
Title:
	
Chief Financial Officer

 

NEOTERIC COSMETICS, INC.,

a Colorado corporation

 

		
	
By:
	
/s/ Kevin A. Paprzycki

	
Name:
	
Kevin A. Paprzycki

	
Title:
	
Chief Financial Officer

 

LENDER:

 

JPMORGAN CHASE BANK, N.A.

 

		
	
By:
	
/s/ Matt Valles

	
Name:
	
Matt Valles

	
Title:
	
Authorized Officer

 

Acknowledged and Agreed:

 

GUARANTORS:

 

COLORADO PRODUCT CONCEPTS, INC.,

a Colorado corporation

 

		
	
By:
	
/s/ Kevin A. Paprzycki

	
Name:
	
Kevin A. Paprzycki

	
Title:
	
Chief Financial Officer

 

SLG CHEMICALS, INC., 

a Colorado corporation

 

		
	
By:
	
/s/ Kevin A. Paprzycki

	
Name:
	
Kevin A. Paprzycki

	
Title:
	
Chief Financial Officer

 

SLG TOUCH-A-LITE, INC., 

a Colorado corporation

 

		
	
By:
	
/s/ Kevin A. Paprzycki

	
Name:
	
Kevin A. Paprzycki

	
Title:
	
Chief Financial OfficerExhibit 10.1

 

HEXCEL CORPORATION

2013 INCENTIVE STOCK PLAN

(as amended to reflect Amendment 2019-1)

 

I. Purpose

 

The Plan is intended to attract, motivate
and retain Employees, Directors and consultants of the Company, and to provide them with incentives to pursue the long-term profitability
and success of the Company.

 

II. Definitions

 

(a)       “Award”
means a grant pursuant to the Plan in the form of a Stock Appreciation Right, Stock Option, Other Stock-Based Award or Qualified
Performance-Based Award.

 

(b)       “Award
Agreement” means a written agreement setting forth the terms and conditions of an Award made under the Plan.

 

(c)       “Board”
means the Board of Directors of the Corporation.

 

(d)       “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and all regulations, interpretations and administrative
guidance thereunder.

 

(e)       “Committee”
means the Compensation Committee of the Board or such other committee of the Board as may be designated by the Board from time
to time to administer the Plan.

 

(f)       “Common
Stock” means the common stock of the Corporation, par value $0.01, or any other security into which such common stock shall
be changed as contemplated by the adjustment provisions of Section X of the Plan.

 

(g)       “Company”
means the Corporation together with all of the Subsidiaries.

 

(h)       “Corporation”
means Hexcel Corporation, a Delaware corporation.

 

(i)       “Covered
Employee” means a Participant who is an executive officer of the Corporation within the meaning of Rule 3b-7 promulgated
under the Exchange Act.

 

(j)       “DGCL”
means the Delaware General Corporation Law, as in effect from time to time.

 

(k)       “Director”
means a member of the Board.

 

(l)       “Effective
Date” means the first date that the stockholders of the Corporation approve the Plan in a manner that satisfies the requirements
of the DGCL and the rules of the New York Stock Exchange.

 

(m)       “Employee”
means an employee of the Company.

 

(n)       “Exchange
Act” means the Securities and Exchange Act of 1934, as amended.

 

(o)       “Fair
Market Value” means, with respect to a share of Common Stock, as of the applicable date of determination, (i) the closing
sales price on the date of determination or, if not so reported for such day, the immediately preceding business day, of a share
of Common Stock as reported on the principal securities exchange on which shares of Common Stock are then listed or admitted to
trading or (ii) if not so reported, the closing bid price on the date of determination or, if not so reported for such day, on
the immediately preceding business day as reported on The NASDAQ Stock Market or (iii) if not so reported, as furnished by any
member of the Financial Industry Regulatory Authority, Inc. selected by the Committee. In the event that the price of a share of
Common Stock shall not be so reported, the Fair Market Value of a share of Common Stock shall be determined by the Committee in
its sole discretion.

 

(p)       “Grant
Date” means, with respect to any Award, the date on which the Committee completes the corporate action necessary to create
a legally binding obligation on the Corporation constituting the Award, or such future date on which the grant is to be effective
as provided by the Committee at the time of the corporate action.

 

(q)       “ISO”
means any Stock Option, or portion thereof, awarded to a Participant pursuant to the Plan that is designated by the Committee as
an incentive stock option and also meets the applicable requirements of an incentive stock option pursuant to Section 422 of the
Code.

 

(r)       “Other
Stock-Based Award” has the meaning assigned to such term in Section VI(b).

 

(s)       “Participant”
means an Employee, Director or consultant to whom one or more Awards have been granted pursuant to the Plan that have not been
fully settled, cancelled or terminated or that are otherwise are no longer

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 outstanding, such Person’s authorized transferees,
and, following the death of such Person, his or her successors, heirs, executors, and administrators, as the case may be.

 

(t)       “Performance-Based
Award” means (i) a Qualified Performance-Based Award or (ii) an Other Stock-Based Award subject to performance-based conditions.

 

(u)       “Performance
Goals” means objective measures of performance based on one or more criteria established by the Committee that must be met
during a Performance Period as a condition to vesting or payment of a Qualified Performance-Based Award or may be required to be
met as a condition to vesting or payment of an Other Stock-Based Award subject to performance-based conditions. Such criteria may
relate to the performance of the Corporation, a Subsidiary, any subsection of the Company’s business or any combination thereof
and may be expressed as an amount or as an increase or decrease over a specified period or a relative comparison of performance
to the performance of a peer group of entities or other external measure, of the selected performance criteria, and shall (or,
solely with respect to an Other Stock-Based Award, may) be based on one or more of the following: earnings, cash flow, customer
satisfaction, safety, revenues, financial return ratios, market performance, productivity, costs, shareholder return and/or value,
operating profits (including earnings before any or all of interest, taxes, depreciation and amortization), net profits, earnings
per share, profit returns or margins, stock price and working capital (or elements thereof). In addition to the foregoing, Other
Stock-Based Awards may also have performance-based measures not described in this paragraph, but which may be established by the
Committee at the time of grant of such Other Stock-Based Award.

 

In determining attainment of a Performance Goal
(A) the Committee shall (or, solely with respect to an Other Stock-Based Award, may) exclude the negative impact of unusual, non-recurring
or extraordinary items attributable to (1) acquisitions or dispositions of stock or assets, (2) any changes in accounting standards
or treatments that may be required or permitted by the Financial Accounting Standards Board, Public Company Accounting Oversight
Board or adopted by the Corporation or the Subsidiaries after the goal is established, (3) restructuring activities, (4) disposal
of a segment of a business, (5) discontinued operations, (6) the refinancing or repurchase of bank loans or debt securities, (7)
unbudgeted capital expenditures, (8) the issuance or repurchase of equity securities and other changes in the number of outstanding
shares, (9) conversion of some or all of convertible securities to common stock and (10) any business interruption event; and (B)
the Committee may determine to exclude such other items as it deems appropriate; provided, that with respect to a Qualified Performance
Based Award, any exclusion shall be determined within ninety (90) days after the start of a Performance Period, shall be determined
according to Generally Accepted Accounting Principles (to the extent applicable) as identified in the Company’s accounts,
financial statements, notes thereto, or management discussion and analysis, and shall be permitted by Section 162(m) of the Code
with respect to a Qualified Performance-Based Award.

 

(v)       “Performance
Period” means, (i) with respect to any Qualified Performance-Based Award, the period of time over which attainment of the
applicable Performance Goals is measured and (ii) with respect to any Other Stock-Based Award subject to performance-based conditions,
the period of time over which attainment of such performance-based conditions is measured. Performance Periods may be overlapping.

 

(w)       “Person”
means a “person” as such term is used in Section 13(d) and 14(d) of the Exchange Act, including any “group”
within the meaning of Section 13(d)(3) under the Exchange Act.

 

(x)       “Plan”
means this Hexcel Corporation 2013 Incentive Stock Plan, as it may be amended from time to time.

 

(y)       “Qualified
Performance-Based Award” means an award granted to a Covered Employee prior to January 1, 2018 pursuant to Section VI(c),
the payment of which is conditioned upon the attainment of one or more Performance Goals, which is intended to meet the requirements
of “qualified performance-based compensation” under Section 162(m) of the Code.

 

(z)       “Securities
Act” means the Securities Act of 1933, as amended.

 

(aa)“Stock Appreciation Right”
means a right granted to a Participant pursuant to Section VI(a) of the Plan to receive an amount of cash, or shares of Common
Stock with a Fair Market Value, or both, equal to the increase in the Fair Market Value of a specified number of shares of Common
Stock between the Grant Date of the right and the date on which it is exercised.

 

(bb)“Stock Option” means a right
granted pursuant to Section VI(a) of the Plan to purchase a specified number of shares of Common Stock at a specified exercise
price per share of Common Stock.

 

(cc)“Subsidiary” means any “subsidiary”
of the Corporation within the meaning of Rule 405 under the Securities Act.

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III. Eligibility

 

All Employees, Directors and consultants
of the Company are eligible to be selected by the Committee to receive an Award pursuant to the Plan.

 

IV. Plan Administration

 

(a)       The
Plan shall be administered by the Committee, which shall consist of two or more persons, each of whom qualifies as a “non-employee
director” (within the meaning of Rule 16b-3 under Section 16 of the Exchange Act), as “independent” within the
meaning of any applicable stock exchange listing rules or similar regulatory authority and, with respect to Qualified Performance-Based
Awards, an “outside director” within the meaning of Treasury Regulation Section 1.162-27(e)(3). The Committee shall
periodically make determinations with respect to the participation of Employees, Directors and consultants in the Plan and the
terms of Awards, including but not limited to amount, type, vesting schedule, exercise price, term, treatment upon termination
of employment or other service relationship of the Participant, form of payment, Performance Goals, performance conditions, and
such other terms and conditions as the Committee deems appropriate, in each case which shall be contained in an Award Agreement
with respect to the Award; provided, that, Awards that vest based upon the lapse of time shall vest over a period
of at least three (3) years, and the Performance Period for Performance-Based Awards shall be at least one (1) year, but, in each
case, the Committee may make exceptions for death, disability, new hires, promotions, retirement, change in control, and other
special circumstances.

 

(b)       The
Committee shall have full discretionary authority to interpret and construe the provisions of the Plan and any Award Agreement
and to make determinations pursuant to any Plan provision or Award Agreement. The Committee shall have the authority, in its discretion,
to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations related to sub-plans
established for the purpose of satisfying applicable foreign laws and/or qualifying for preferred tax treatment under applicable
foreign laws. For purposes of clarity, the Committee may exercise all discretion granted to it under the Plan in a non-uniform
manner among Participants and all other Persons. All decisions, determinations and interpretations of the Committee pursuant to
the Plan shall be final, binding and conclusive on all Participants and all other Persons.

 

(c)       On
or after the Grant Date of an Award, the Committee may (i) accelerate the date on which such Award becomes vested, exercisable
or transferable, as the case may be, (ii) extend the term of any such Award, including, without limitation, extending the period
following a termination of a Participant’s employment or other service relationship during which such Award may remain outstanding,
(iii) waive any conditions to the vesting, exercisability or transferability, as the case may be, of such Award, (iv) provide for
the payment of dividends or dividend equivalents with respect to such Award or (v) permit the transferability of such Award; provided,
that the Committee shall not have any such authority to the extent that the grant of such authority would cause any tax to become
due under Section 409A of the Code. Notwithstanding anything herein to the contrary, any repricing of a Stock Option or cash tender
by the Corporation for a Stock Option shall require the approval of the stockholders of the Corporation.

 

(d)       The
employment of a Participant with the Company shall be deemed to have terminated for all purposes of the Plan if such Participant
is employed by or provides services to a Person that is a Subsidiary and such Person ceases to be a Subsidiary, unless the Committee
determines otherwise. The Committee may, without limitation and in its discretion, in connection with any such determination, take
any action permitted under Section IV(c) upon or after such cessation, subject to such terms and conditions as the Committee shall
specify. The employment of a Participant with the Company shall not be deemed to have terminated for any purpose of the Plan if
such Participant is employed by the Corporation or a Subsidiary, and such Participant’s employment is subsequently transferred
among the Corporation and the Subsidiaries, unless and to the extent the Committee specifies otherwise in writing in the Award
Agreement or otherwise.

 

(e)       All
of the powers and responsibilities of the Committee under the Plan may be delegated by the Committee to any subcommittee thereof.
In addition, the Committee may from time to time authorize a subcommittee consisting of one or more Directors (including Directors
who are Employees) or Employees to grant Awards, subject to such restrictions and limitations as the Committee may specify and
to the requirements of DGCL Section 157.

 

(f)       To
the extent, and in the manner, provided by the Corporation’s Certificate of Incorporation, as it may be amended from time
to time, each member of the Committee, and each Director to whom any duty or power relating to the administration or interpretation
of the Plan has been delegated pursuant to Section IV(e), shall not be liable for, and shall be entitled to indemnification and
advancement of expenses in respect of, any action, omission, or determination relating to the Plan. To the extent permitted by
applicable law, including without limitation the DGCL, each non-Director Employee to whom any duty or power relating to the administration
or interpretation of the Plan has been delegated pursuant to Section IV(e) shall not be liable for, and shall be entitled to indemnification
and advancement of expenses in respect of, 

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any action, omission or determination relating to the Plan, in the same manner and to
the same extent as the members of the Committee and Directors.

 

V. Stock Subject to Awards under the Plan,
Share Counting Rules and

Certain Limitations on Awards

 

(a)       Stock
Subject to the Plan.

 

(i)       The
capital stock subject to Awards under the Plan shall be shares of authorized but unissued Common Stock and shares of Common Stock
held as treasury stock. Subject to adjustment in accordance with the provisions of Section X, and subject to Section V(a)(ii) below,
the maximum number of shares of Common Stock that shall be available for grant pursuant to Awards under the Plan shall be 7,105,000
in the aggregate.

 

(ii)       The
following categories of shares of Common Stock shall again be available for grant pursuant to Awards under the Plan, in addition
to shares available for grant under paragraph (a)(i) of this Section V: (A) shares related to Awards that are cancelled, forfeited,
paid in cash, expire unexercised or terminate for any reason without the issuance of shares of Common Stock, and the number of
shares that are not actually paid pursuant to Performance-Based Awards that are earned at less than their maximum performance levels
and (B) shares related to awards granted under the Hexcel Corporation 2003 Incentive Stock Plan, As Amended and Restated May 7,
2009 (the “2003 Plan”), that are cancelled, forfeited, paid in cash, expire unexercised or terminate for any reason
without the issuance of shares of Common Stock, and the number of shares that are not actually paid pursuant to performance-based
awards granted under the 2003 Plan that are earned at less than their maximum performance levels. The following categories of shares
of Common Stock shall not be available for grant pursuant to Awards under the Plan: (1) shares tendered or withheld in payment
of the exercise price of Stock Options, (2) shares tendered or withheld to satisfy a Participant’s tax withholding obligation,
and (3) shares repurchased by the Corporation using the proceeds from the exercise of Stock Options. In addition, the exercise
or settlement of Stock Appreciation Rights shall reduce the shares of Common Stock available under the Plan by the total number
of shares to which the exercise or settlement of the Stock Appreciation Rights relates, not just the net amount of shares actually
issued upon exercise or settlement.

 

(iii)       Subject
to adjustment in accordance with the provisions of Section X, the maximum number of shares of Common Stock that may be subject
to Awards granted under the Plan that are intended to be ISOs shall not exceed 400,000 shares of Common Stock in the aggregate.

 

(iv)       No
more than fifty percent (50%) of the shares of Common Stock available for grant pursuant to Awards under the Plan shall be granted
pursuant to Awards other than Stock Options and Stock Appreciation Rights. For purposes of this limitation only, with respect to
a Performance-Based Award, the number of shares of Common Stock deemed to be granted shall be that number of shares that would
ultimately be issued if the target level of the applicable performance condition or Performance Goal is achieved.

 

(b)       Assumption,
Replacement, Conversion and Adjustment. In the context of a corporate acquisition or merger, the Committee may grant Awards
pursuant to the Plan in connection with the assumption, replacement, conversion or adjustment of outstanding equity-based awards
of an entity other than the Corporation. Unless otherwise required by the listing rules of any securities exchange on which shares
of Common Stock are traded, Common Stock covered by Awards granted pursuant to this Section V(b) shall not count against the number
of shares available for issuance pursuant to Section V(a).

 

(c)       Individual
Award Limits. Subject to adjustment as provided in Section X:

 

(i)       the
maximum number of shares of Common Stock that may be covered by Stock Options or Stock Appreciation Rights that are granted to
any Covered Employee in any calendar year is equal to the maximum number of shares specified in Section V(a);

 

(ii)       the
maximum number of shares of Common Stock that may be covered by Qualified Performance-Based Awards that are granted to any Covered
Employee in any calendar year is equal to 345,000 shares; and

 

(iii)       the
maximum number of shares of Common Stock that may be covered by Awards that are granted to any Director who is not an Employee
in any calendar year is equal to 20,000 shares.

 

VI. Awards Under The Plan

 

The Committee may from time to time grant Awards
to Participants, subject to the following terms and conditions:

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(a)       Stock
Options and Stock Appreciation Rights.

 

(i)       Terms
and Conditions. The exercise price per share of Common Stock covered by any Stock Option or Stock Appreciation Right shall
not be less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the Grant Date of the Stock
Option or Stock Appreciation Right. Each Stock Option and Stock Appreciation Right shall become vested and exercisable on such
date or dates, during such period and for such number of shares of Common Stock as shall be determined by the Committee on or after
the Grant Date of such Stock Option or Stock Appreciation Right and set forth in the applicable Award Agreement; provided,
however, that no Stock Option or Stock Appreciation Right shall be exercisable after the expiration of ten (10) years from
the Grant Date of such Stock Option or Stock Appreciation Right; and, provided, further, that each Stock Option and Stock Appreciation
Right shall be subject to earlier termination, expiration or cancellation as provided in the Plan or in the applicable Award Agreement.
Each Stock Option and Stock Appreciation Right may be exercised in whole or in part. The partial exercise of a Stock Option or
Stock Appreciation Right shall have no impact on the remaining portion thereof. A Stock Option or Stock Appreciation Right shall
be exercised by such methods and procedures as the Committee determines from time to time. The exercise price of shares of Common
Stock purchased upon exercise of Stock Options may be paid in any manner determined by the Committee from time to time, including
without limitation through net physical settlement or other method of cashless exercise.

 

(ii)       Additional
Terms for ISOs. Each Stock Option that is intended to qualify as an ISO shall be designated as such in the applicable Award
Agreement, and if the applicable Award Agreement does not include any such designation, the Stock Option shall be deemed to be
a non-qualified Stock Option. ISOs may only be granted to Persons who are Employees. The aggregate Fair Market Value (determined
as of the Grant Date of the ISOs) of the number of shares of Common Stock with respect to which ISOs are exercisable for the first
time by any Participant during any calendar year under all plans of the Company shall not exceed $100,000, or such other maximum
amount as is then applicable under Section 422 of the Code. Any Stock Option or a portion thereof that is designated as an ISO
that for any reason fails to meet the requirements of an ISO shall be treated hereunder as a non-qualified Stock Option. No ISO
may be granted to a Person who, at the time of the proposed grant, owns (or is deemed to own under the Code) stock possessing more
than ten percent (10%) of the total combined voting power of all classes of common stock of the Company unless (i) the exercise
price per share of Common Stock subject to such ISO is at least one hundred ten percent (110%) of the Fair Market Value of a share
of Common Stock at the time such ISO is granted and (ii) such ISO is not exercisable after the expiration of five (5) years from
its Grant Date.

 

(b)       Other
Stock-Based Awards. The Committee may grant equity-based or equity-related awards other than Stock Options, Stock Appreciation
Rights or Qualified Performance-Based Awards in such amounts and subject to such terms and conditions as the Committee shall determine
(each such award an “Other Stock-Based Award”). Without limiting the generality of the preceding sentence, each such
Other Stock-Based Award may (a) involve the transfer of actual shares of Common Stock to Participants, either at the time of grant
or thereafter, or payment in cash or otherwise of amounts based on the value of shares of Common Stock, (b) be subject to performance-based
and/or service-based conditions, (c) be in the form of phantom stock, restricted stock units, deferred share units or share-denominated
performance units and (d) be designed to comply with applicable laws of jurisdictions other than the United States; provided, that
each Other Stock-Based Award shall be denominated in, or shall have a value determined by reference to, a number of shares of Common
Stock that is specified at the time of the grant of such award.

 

(c)       Qualified
Performance-Based Awards. A Qualified Performance-Based Award shall be denominated in, or shall have a value determined by
reference to, a number of shares of Common Stock that is specified at the time of the grant of such award. The amount payable with
respect to any Qualified Performance-Based Award shall be determined in any manner permitted by Section 162(m) of the Code. Unless
otherwise specified in the Award Agreement for a Qualified Performance-Based Award, the Committee may, in its discretion, reduce
or eliminate the amount payable to any Participant with respect to the Qualified Performance-Based Award, based on such factors
as the Committee may deem relevant, but the Committee may not increase any such amount above the amount established in accordance
with the objective level of achievement of the applicable Performance Goals. For purposes of clarity, the Committee may exercise
the discretion provided by the foregoing sentence in a non-uniform manner among Participants. Within ninety (90) days after the
beginning of a Performance Period with respect to any Qualified Performance-Based Award, and in any case before twenty-five percent
(25%) of the Performance Period has elapsed, the Committee shall establish the Performance Goals for such Performance Period. In
addition, the Committee may, subject to the terms of the Plan, amend previously granted Qualified Performance-Based Awards in a
way that disqualifies them as “qualified performance-based compensation” under Section 162(m) of the Code.

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VII. Award Agreements

 

Each Award under the Plan shall be evidenced
by an Award Agreement setting forth the terms and conditions of the Award.

 

VIII. Other Terms and Conditions

 

(a)       Transferability;
Transfers Upon Death. Awards may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised, during the lifetime of a Participant, only by the
Participant; provided, however, that the Committee may at any time permit in its discretion Awards to be sold, pledged,
assigned, hypothecated, transferred, or disposed of, on a general or specific basis, subject to such conditions and limitations
as the Committee may determine. Upon the death of a Participant, outstanding Awards granted to such Participant may be exercised
by the Participant’s designated authorized person or permitted transferee, provided that such authorized person or permitted
transferee has been designated prior to the Participant’s death. Each such designation shall revoke all prior designations
by the Participant and shall be effective only if given in a form and manner acceptable to the Committee. In the absence of any
such effective designation, such Awards may be exercised only by the executors or administrators of the Participant’s estate
or by any person or persons who shall have acquired such right to exercise by will or by the laws of descent and distribution.
No transfer of any Award or the right to exercise any Award, whether by will, the laws of descent and distribution, or to any permitted
transferee or authorized person, shall be effective to bind the Corporation unless the Committee shall have been furnished with
(i) written notice thereof and with a copy of the will and/or such evidence as the Committee may deem necessary to establish the
validity of the transfer and (ii) an agreement by the transferee to comply with all the terms and conditions of the Award that
are or would have been applicable to the Participant and to be bound by the acknowledgements made by the Participant in connection
with the grant of the Award.

 

(b)       Termination
of Employment or Other Relationship. The Committee shall determine the consequences with respect to each Award in the event
of the retirement, disability, death or other termination of a Participant’s employment or other relationship with the Company.

 

(c)       No
Obligation to Exercise. The grant of an Award shall impose no obligation upon the Participant to exercise the Award.

 

(d)       Rights
as a Stockholder. A Participant shall have no rights as a stockholder with respect to shares of Common Stock covered by an
Award until the date that such shares are issued on the books and records of the Corporation. For the avoidance of doubt, for purposes
of the foregoing sentence the right to receive dividend equivalents with respect to an Award shall not be considered a right as
a stockholder with respect to the shares of Common Stock covered by such Award.

 

(e)       Dividend
Equivalents/Dividends. In the event that the Committee provides for the accrual of dividends or dividend equivalents with respect
to an Award, such dividends or dividend equivalents shall be subject to the same terms and conditions as, and shall in no event
be paid prior to the vesting of, the Award to which they relate.

 

(f)       Withholding.
Except as otherwise provided by the Committee, (i) the deduction of withholding and any other taxes required by law will be made
from all amounts paid in cash and (ii) in the case of payments of Awards in shares of Common Stock, the Participant shall be required
to pay the amount of any taxes required to be withheld prior to receipt of such stock, or alternatively, a number of shares the
Fair Market Value of which equals the amount required to be withheld may be deducted from the payment.

 

(g)       Securities
Matters. Notwithstanding anything to the contrary herein, the Corporation shall not be obligated to cause to be issued any
shares of Common Stock pursuant to the Plan, including upon the exercise of any Stock Option granted hereunder, unless and until
the Corporation is advised by its counsel that the issuance of such shares is in compliance with all applicable laws, regulations
of governmental authority and the requirements of any securities exchange on which shares of Common Stock are traded. The Committee
may require, as a condition to the issuance of shares of Common Stock pursuant to the terms hereof, that the recipient of such
shares make such covenants, agreements and representations, and that any certificates representing such shares bear such legends,
as the Committee deems necessary or desirable. The Corporation may, in its sole discretion, defer the effectiveness of an exercise
of a Stock Option hereunder or the issuance of shares of Common Stock pursuant to any Award pending or to ensure compliance under
federal, state, local or foreign securities laws. The Corporation shall inform the Participant in writing of its decision to defer
the effectiveness of the exercise of a Stock Option or the issuance of shares of Common Stock pursuant to any Award. During the
period that the effectiveness of the exercise of a Stock Option has been deferred, the 

    6 

     

    

Participant may, by written notice, withdraw
such exercise and obtain the refund of any amount paid with respect thereto. Notwithstanding the foregoing, the Corporation shall
be under no obligation to effect the registration pursuant to the Securities Act of any shares of Common Stock to be issued hereunder
or to effect similar compliance under any state, local or foreign laws.

 

(h)       Expenses
and Receipts. The expenses of the Plan shall be paid by the Company. Any proceeds received by the Corporation in connection
with any Award will be used for general corporate purposes.

 

IX. Termination, Modification and Amendments

 

(a)       The
Committee may at any time terminate the Plan or from time to time make such modifications or amendments of the Plan as it may deem
advisable; provided, however, that no amendments to the Plan which require stockholder approval under applicable law, rule, regulation
or stock exchange listing requirement shall become effective unless the same shall be approved by the requisite vote of the Corporation’s
stockholders.

 

(b)       No
termination, modification or amendment of the Plan may adversely affect the rights conferred by a previously granted Award without
the consent of the recipient thereof.

 

X. Adjustment Upon Certain Changes

 

Subject to any action by the stockholders of the Corporation required
by law, applicable tax rules or the rules of any exchange on which shares of Common Stock (or any other common stock of the Corporation)
are listed for trading:

 

(a)       Shares
Available for Grants. In the event of any change in the number or type of shares of Common Stock (or any other common stock
of the Corporation) outstanding by reason of any stock dividend or split, recapitalization, merger, consolidation, combination
or exchange of shares or similar corporate change, or any change in the type and number of shares of Common Stock (or any other
common stock of the Corporation) outstanding by reason of any other event or transaction, the Committee shall make equitable adjustments
in the type of shares and in the limitations on the number of shares with respect to which the Committee may grant Awards as described
in Section V.

 

(b)       Increase
or Decrease in Issued Shares Without Consideration. In the event of any increase or decrease in the number or type of issued
shares of Common Stock (or any common stock of the Corporation) resulting from a subdivision or consolidation of shares of Common
Stock (or any other common stock of the Corporation) or the payment of a stock dividend (but only on the shares of Common Stock
or other common stock of the Corporation), or any other increase or decrease in the number of such shares effected without receipt
or payment of consideration by the Company, the Committee shall equitably adjust the type or number of shares subject to each outstanding
Award and the exercise price per share, if any, of shares subject to each such Award; provided, however, that any fractional shares
resulting from such adjustment shall be eliminated. Any adjustments to outstanding Awards shall be consistent with Section 409A
or 424 of the Code, to the extent applicable. Any adjustments determined by the Committee shall be final, binding and conclusive.

 

(c)       Certain
Mergers. In the event of any merger, consolidation or similar transaction as a result of which the holders of shares of Common
Stock receive consideration consisting exclusively of securities of the surviving corporation in such transaction, the Committee
shall appropriately adjust each Award outstanding on the date of such merger or consolidation so that it pertains and applies to
the securities which a holder of the number of shares of Common Stock subject to such Award would have received in such merger
or consolidation.

 

(d)       Certain
Other Transactions. In the event of (i) a dissolution or liquidation of the Corporation, (ii) a sale of all or substantially
all of the Company’s assets (on a consolidated basis) or (iii) a merger, consolidation or similar transaction involving the
Corporation in which the holders of shares of Common Stock receive securities and/or other property, including cash, other than
shares of the surviving corporation in such transaction, the Committee shall, in its sole discretion, have the power to:

 

(A) cancel, effective immediately prior
to the occurrence of such event, each Award (whether or not then exercisable or vested), and, in full consideration of such cancellation,
pay to the Participant to whom such Award was granted an amount in cash, for each share of Common Stock subject to such Award,
equal to the value, as determined by the Committee, of such share of Common Stock, provided that with respect to the shares of
Common Stock subject to any outstanding Stock Option or Stock Appreciation Right such value shall be equal to the excess of (1)
the value, as determined by the Committee, of the property (including cash) received by the holder of a share of Common Stock as
a result of such event over (2) the exercise price of a share of Common Stock subject to such Stock Option or Stock Appreciation
Right, provided that if the per share value of Common Stock equals or is less than the per share exercise price of a share of Common
Stock subject to such Stock Option or Stock Appreciation Right, the Company shall not be required to make any payment to the Participant
upon surrender of the Stock Option or Stock Appreciation Right; or

    7 

     

    

 

(B) provide for the exchange of each
Award (whether or not then exercisable or vested) for an Award with respect to some or all of the property which a holder of the
number of shares of Common Stock subject to such Award would have received in such transaction, and, incident thereto, make an
equitable adjustment as determined by the Committee in the exercise price per share, if any, of stock subject to the Award, or
the number of shares or amount of property subject to the Award or provide for a payment (in cash or other property) to the Participant
to whom such Award was granted in partial consideration for the exchange of the Award.

 

(e)       Other
Changes. In the event of any change in the capitalization of the Corporation or corporate change other than those specifically
referred to in subsections (b), (c) or (d) of this Section X, including without limitation, any extraordinary cash dividend, spin-off,
split-off, sale of a Subsidiary or business unit, or similar transaction, the Committee shall make such equitable adjustments in
the issuer, number and type of shares subject to Awards outstanding on the date on which such change occurs, such as, for example,
a substitution of Awards, and in such other terms of such Award as the Committee may consider appropriate; provided, however, that
any fractional shares resulting from such adjustment shall be eliminated. Any adjustments to outstanding Awards shall be consistent
with Section 409A or 424 of the Code, to the extent applicable. Any adjustments determined by the Committee shall be final, binding
and conclusive.

 

(f)       Committee
Discretion; No Other Rights. The Committee shall exercise the discretion granted to it pursuant to this Section X in a manner
necessary to preserve the intended benefits of the Plan for the Corporation and the Participants. Except as expressly provided
in the Plan, no Participant or other Person shall have any rights by reason of any subdivision or consolidation of shares of stock
of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class or any dissolution,
liquidation, merger or consolidation of the Corporation or any other corporation. Except as expressly provided in the Plan, no
issuance by the Corporation of shares of stock of any class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the number of shares or amount of other property subject
to, or the terms related to, any Award.

 

(g)       Construction.
Nothing in clauses (c), (d) or (e) of this Section X shall be deemed to supersede any provision of an Award that provides for
accelerated vesting, termination, or other consequence in connection with any event or change to which such clauses apply.

 

(h)       Savings
Clause. No provision of this Section X shall be given effect to the extent that such provision would cause any tax to become
due under Section 409A of the Code.

 

XI. No Special Employment Rights

 

No Person shall have any claim or right pursuant
to this Plan to be granted an Award, and the grant of an Award shall not be construed as giving a Participant the right to be retained
in the employ of, or in any other relationship with, the Corporation or a Subsidiary. The Corporation and each Subsidiary expressly
reserves the right at any time to terminate a Participant’s employment or other service relationship and to increase or decrease
the compensation of a Participant from the rate in existence at the time of grant of any Award.

 

XII. Governing Law

 

To the extent that federal laws do not otherwise
control, the Plan shall be construed in accordance with and governed by the laws of the State of Delaware without regard to its
principles of conflicts of law.

 

XIII. Savings Clauses

 

(a)       In
General. The Plan is intended to comply in all aspects with applicable laws and regulations. In case any one or more of the
provisions of the Plan shall be held invalid, illegal or unenforceable in any respect under applicable law and regulation, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the
invalid, illegal or unenforceable provision shall be deemed null and void; however, to the extent permissible by law, any provision
which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit the Plan to be construed
in compliance with all applicable laws so as to foster the intent of the Plan.

 

(b)       Section
409A of the Code.

 

(i)       To
the extent applicable, it is intended that the Plan and the Awards granted hereunder comply with, or be exempt from, the requirements
of Section 409A of the Code and any related regulations or other guidance promulgated with respect to such Section by the U.S.
Department of the Treasury or the Internal Revenue Service. Accordingly, to the maximum extent permitted, the Plan and the Awards
granted hereunder shall be interpreted and administered to be in 

    8 

     

    

compliance therewith or exempt therefrom and if any provision
of the Plan or any term or condition of any Award would frustrate or conflict with this intent, then the provision, term or condition
will be interpreted and deemed amended so as to avoid the frustration or conflict.

 

(ii)       Notwithstanding
anything herein or in any Award Agreement to the contrary, to the extent required in order to avoid accelerated taxation and/or
tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided
pursuant to the Plan to a Participant during the six-month period immediately following the Participant’s “separation
from service” (within the meaning of Section 409A of the Code) shall instead be paid on the first business day after the
date that is six (6) months following the Participant’s separation from service (or, if earlier than the end of such six-month
period, the first business day after the date of the Participant’s death). Notwithstanding anything in this Plan or any Award
Agreement to the contrary, each Participant shall be solely responsible for the tax consequences of Awards under this Plan, and
in no event shall the Company have any responsibility or liability if any Award does not meet the applicable requirements of Section
409A of the Code. Although the Corporation intends to administer the Plan to prevent taxation under Section 409A of the Code, the
Company does not represent nor warrant that the Plan or any Award complies with any provision of federal, state, local or other
tax law.

 

XIV. Effective Date and Termination

 

The Plan shall be effective on the Effective
Date. The Plan shall terminate on the tenth (10th) anniversary of the date of the latest stockholder approval of the Plan, including
without limitation any stockholder approval of an amendment to the Plan to increase the number of shares of Common Stock that may
be granted hereunder. No Awards shall be granted after the termination of the Plan, but all Awards outstanding under the Plan at
the time of termination shall remain outstanding pursuant to the terms thereof.

 

Following the Effective Date, no further awards
will be granted under the 2003 Plan. For purposes of clarity, shares of Common Stock related to all awards granted under the 2003
Plan prior to the Effective Date are acknowledged and affirmed as having been properly authorized and validly granted under the
2003 Plan.

    9

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