Document:

Exhibit 10.5

 

 

 

 

 

 

 

 

 

 

 

 

TAX RECEIVABLE AGREEMENT

 

among

 

vTv THERAPEUTICS INC.,

 

and

 

THE PERSONS NAMED HEREIN

 

 

 

 

 

 

 

 

 

 

 

Dated as of July 29
, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I DEFINITIONS	2
	Section 1.01	Definitions	2
	 	 	 
	ARTICLE II DETERMINATION OF REALIZED TAX BENEFIT	10
	Section 2.01	Basis Adjustment	10
	Section 2.02	Realized Tax Benefit and Realized Tax Detriment	10
	Section 2.03	Procedures, Amendments	11
	 	 	 
	ARTICLE III TAX BENEFIT PAYMENTS	12
	Section 3.01	Payments.	12
	Section 3.02	No Duplicative Payments	13
	 	 	 
	ARTICLE IV TERMINATION	13
	Section 4.01	Termination, Early Termination and Breach of Agreement	13
	Section 4.02	Early Termination Notice	15
	Section 4.03	Payment upon Early Termination	15
	 	 	 
	ARTICLE V SUBORDINATION AND LATE PAYMENTS	15
	Section 5.01	Subordination	15
	Section 5.02	Late Payments by the Corporate Taxpayer	16
	 	 	 
	ARTICLE VI NO DISPUTES; CONSISTENCY; COOPERATION	16
	Section 6.01	Participation in the Corporate Taxpayer’s and OpCo’s Tax Matters	16
	Section 6.02	Consistency	16
	Section 6.03	Cooperation	16
	 	 	 
	ARTICLE VII MISCELLANEOUS	17
	Section 7.01	Notices	17
	Section 7.02	Binding Effect; Benefit; Assignment	18
	Section 7.03	Resolution of Disputes	18
	Section 7.04	Counterparts	19
	Section 7.05	Entire Agreement	19
	Section 7.06	Severability	19
	Section 7.07	Amendment	20
	Section 7.08	Governing Law	20
	Section 7.09	Reconciliation	20
	Section 7.10	Withholding	21
	Section 7.11	Admission of the Corporate Taxpayer into a Consolidated Group; Transfers of Corporate Assets	21
	Section 7.12	Confidentiality	21
	Section 7.13	Partnership Agreement	21

 

    	i

    	 

    

 

TAX RECEIVABLE AGREEMENT 

 

This TAX RECEIVABLE AGREEMENT (as amended
from time to time, this “Agreement”), dated as of July 29
, 2015, is hereby entered into by and among
vTv Therapeutics Inc., a Delaware corporation (the “Corporate Taxpayer”), each of the undersigned parties hereto
identified as “Members,” and each Person who is assigned rights by a Member and executes a joinder hereto as
provided in Section 7.02(b).

 

RECITALS

 

WHEREAS, vTv Therapeutics LLC, a Delaware
limited liability company (“OpCo”), is classified as a partnership for U.S. federal income tax purposes;

 

WHEREAS, the Corporate Taxpayer is classified
as an association taxable as a corporation for U.S. federal income tax purposes;

 

WHEREAS, each Member holds non-voting common
units in OpCo (the “Non-Voting Common Units”);

 

WHEREAS, the Corporate Taxpayer will use
the net proceeds from the transactions described in the registration statement on Form S-1 initially filed with the Securities
and Exchange Commission on June 15, 2015 (Registration No. 333-204951), as amended prior to the date hereof, including the initial
public offering of shares of Class A common stock, $0.01 par value per share (“Class A Common Stock”) by the
Corporate Taxpayer (the “IPO”), to acquire newly-issued Non-Voting Common Units in Opco directly from OpCo
(the “Capital Contribution”);

 

WHEREAS, under the terms of the Exchange Agreement,
each Member may exchange each Non-Voting Common Unit held by it, together with a corresponding share of Class B common stock, $0.01
par value per share, of the Corporate Taxpayer (“Class B Common Stock”), either for shares of Class A Common
Stock, on a one-for-one basis, or cash (based on the market price of the shares of the Class A Common Stock), at the Corporate
Taxpayer’s option.

 

WHEREAS, OpCo and each of its direct and indirect
subsidiaries classified as a partnership for U.S. federal income tax purposes will have in effect an election under Section 754
of the Internal Revenue Code of 1986, as amended (the “Code”), for the Taxable Year (as defined below) in which
an Exchange (as defined below) occurs, which election is intended to result in an adjustment to the tax basis of the assets owned
by OpCo (solely with respect to the Corporate Taxpayer) at the time of an Exchange (such time, the “Exchange Date”)
by reason of the Exchange and the receipt of certain payments under this Agreement;

 

WHEREAS, the income, gain, loss, expense and
other Tax (as defined below) items of the Corporate Taxpayer may be affected by (i) the Basis Adjustment (as defined below) and
(ii) Imputed Interest (as defined below); and

 

    	 

    	 

    

 

WHEREAS, the parties to this Agreement desire
to make certain arrangements with respect to the effect of the Basis Adjustment and Imputed Interest on the actual liability for
Taxes of the Corporate Taxpayer.

 

NOW, THEREFORE, in consideration of the foregoing
and the respective covenants and agreements set forth herein, and intending to be legally bound hereby, the parties hereto agree
as follows:

 

Article I

DEFINITIONS

 

Section 1.01       
Definitions.

 

(a)               
The following terms shall have the following meanings for the purposes of this Agreement:

 

“Affiliate” shall have
the meaning set forth in Rule 405 under the Securities Act of 1933, as amended (as in effect on the date hereof).

 

“Agreed Rate” means LIBOR
plus 100 basis points.

 

“Applicable Member” means
any Member to whom any portion of a Realized Tax Benefit may be Attributable under this Agreement.

 

“Attributable” means, with
respect to any Applicable Member, the portion of any Realized Tax Benefit of the Corporate Taxpayer that is “attributable”
to such Applicable Member, which shall be determined by reference to the assets from which arise the depreciation, amortization
or other similar deductions for recovery of cost or basis (“Depreciation”) and with respect to increased basis
upon a disposition of an asset or Imputed Interest that produce the Realized Tax Benefit, under the following principles:

 

(i)                
Any Realized Tax Benefit arising from a deduction to the Corporate Taxpayer with respect to a Taxable Year for Depreciation
arising in respect of a Basis Adjustment to a Reference Asset resulting from an Exchange is Attributable to the Applicable Member
to the extent that the ratio of all Depreciation for the Taxable Year in respect of Basis Adjustments resulting from all Exchanges
by the Applicable Member bears to the aggregate of all Depreciation for the Taxable Year in respect of Basis Adjustments resulting
from all Exchanges by the Applicable Members.

 

(ii)              
Any Realized Tax Benefit arising from the disposition of a Reference Asset is Attributable to the Applicable Member
to the extent that the ratio of all Basis Adjustments (to the extent not previously giving rise to Realized Tax Benefits) resulting
from all Exchanges by the Applicable Member with respect to such Reference Asset bears to the aggregate of all Basis Adjustments
(to the extent not previously giving rise to Realized Tax Benefits) with respect to such Reference Asset.

 

    	2

    	 

    

 

(iii)            
Any Realized Tax Benefit arising from a deduction to the Corporate Taxpayer with respect to a Taxable Year in respect
of Imputed Interest is Attributable to the Applicable Member that is required to include Imputed Interest in income (without regard
to whether such Member is actually subject to tax thereon).

 

(iv)            
For the avoidance of doubt, in the case of a Basis Adjustment with respect to an Exchange, depreciation, amortization
or other similar deductions for recovery of cost of basis shall constitute Depreciation only to the extent that such depreciation,
amortization or other similar deductions may produce a Realized Tax Benefit (and not to the extent that such depreciation, amortization
or other similar deductions may be for the benefit of a Person other than the Corporate Taxpayer), as reasonably determined by
the Corporate Taxpayer.

 

“Basis Adjustment” means
the adjustment to the tax basis of a Reference Asset under Sections 732, 755 and 1012 of the Code and the Treasury Regulations
promulgated thereunder (in situations where, as a result of one or more Exchanges, OpCo becomes classified as an entity that is
disregarded as separate from its owner for U.S. federal income tax purposes) or under Sections 734(b), 743(b) and 755 of the Code
and the Treasury Regulations promulgated thereunder (in situations where, following an Exchange, OpCo remains in existence as an
entity for U.S. federal income tax purposes) and, in each case, comparable sections of state and local tax laws, as a result of
(i) an Exchange and (ii) the payments made pursuant to this Agreement. For the avoidance of doubt, the amount of any Basis Adjustment
resulting from an Exchange of one or more Non-Voting Common Units shall be determined without regard to any Pre-Exchange Transfer
of such Non-Voting Common Units and as if any such Pre-Exchange Transfer had not occurred.

 

A “Beneficial Owner” of
a security is a Person who directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise,
has or shares: (i) voting power, which includes the power to vote, or to direct the voting of, such security and/or (ii) investment
power, which includes the power to dispose of, or to direct the disposition of, such security.

 

“Board” means the board
of directors of the Corporate Taxpayer.

 

“Business Day” shall have
the meaning ascribed to such term in the LLC Agreement.

 

“Change of Control” means
the occurrence of any of the following events:

 

(i)                
any Person or any group of Persons
acting together which would constitute a “group” for purposes of Section 13(d) of the Securities and Exchange Act of
1934, or any successor provisions thereto, other than any of the Permitted Holders, is or becomes the Beneficial Owner, directly
or indirectly, of securities of the Corporate Taxpayer representing more than 50% of the combined voting power of the Corporate
Taxpayer’s then outstanding voting securities; or

 

    	3

    	 

    

 

(ii)                
the following individuals cease for
any reason to constitute a majority of the number of directors of the Corporate Taxpayer then serving: individuals who, on the
IPO Date, constitute the Board and any new director whose appointment or election by the Board or nomination for election by the
Corporate Taxpayer’s shareholders was approved or recommended by a vote of at least a majority of the directors then still
in office who either were directors on the IPO Date or whose appointment, election or nomination for election was previously so
approved or recommended by the directors referred to in this clause (ii); or

 

(iii)                there is consummated a merger or
consolidation of the Corporate Taxpayer with any other corporation or other entity, and, immediately after the consummation of
such merger or consolidation, either (x) the Board immediately prior to the merger or consolidation does not constitute at least
a majority of the board of directors of the company surviving the merger or, if the surviving company is a Subsidiary, the ultimate
parent thereof, or (y) the voting securities of the Corporate Taxpayer immediately prior to such merger or consolidation do not
continue to represent or are not converted into more than 50% of the combined voting power of the then outstanding voting securities
of the Person resulting from such merger or consolidation or, if the surviving company is a Subsidiary, the ultimate parent thereof;
or

 

(iv)                the shareholders of the Corporate
Taxpayer approve a plan of complete liquidation or dissolution of the Corporate Taxpayer or there is consummated an agreement or
series of related agreements for the sale or other disposition, directly or indirectly, by the Corporate Taxpayer of all or substantially
all of the Corporate Taxpayer’s assets, other than such sale or other disposition by the Corporate Taxpayer of all or substantially
all of the Corporate Taxpayer’s assets to an entity, at least 50% of the combined voting power of the voting securities of
which are owned or beneficially owned, directly or indirectly, by (x) shareholders of the Corporate Taxpayer in substantially the
same proportions as their ownership immediately prior to such sale or (y) the Permitted Holders.

 

Notwithstanding the foregoing, except with
respect to clause (ii) and clause (iii)(x) above, (1) a “Change of Control” shall not be deemed to have occurred by
virtue of the consummation of any transaction or series of integrated transactions immediately following which (a) the record or
beneficial holders of the issued and outstanding shares of the Corporate Taxpayer immediately prior to such transaction or series
of transactions continue to have substantially the same proportionate ownership in, and own substantially all of the shares of,
an entity which owns all or substantially all of the assets of the Corporate Taxpayer immediately following such transaction or
series of transactions, (b) no Person, other than a Permitted Holder, beneficially owns, directly or indirectly through one or
more intermediaries, more than 50% of the voting power of the shares of an entity which owns all or substantially all of the assets
of the Corporate Taxpayer immediately following such transaction or series of transactions; (2) any holding company whose only
significant asset is shares of any direct or indirect parent of the Corporate Taxpayer shall not itself be considered a “Person”
or “group” for purposes of this definition; (3) the transfer of assets between or among the Corporate Taxpayer and
the Permitted Holders shall not itself constitute a Change of Control; (4) a Person or group of Persons shall not be deemed to
have beneficial ownership of shares subject to a stock purchase agreement, merger agreement or similar agreement (or voting or
option agreement related thereto) until the consummation of the transactions contemplated by such agreement; (5) any change in
the relative beneficial ownership of the Permitted Holders that does not alter the overall beneficial ownership of the Permitted
Holders shall not constitute a Change of Control; (6) the term “Change of Control” shall not include a merger or consolidation
of the Corporate Taxpayer with or the sale, assignment, conveyance, transfer, lease or other disposition of all or substantially
all of the Corporate Taxpayer’s assets to, an Affiliate incorporated or organized solely for the purpose of reincorporating or
reorganizing the Corporate Taxpayer in another jurisdiction and/or for the sole purpose of forming or collapsing a holding company
structure.

 

    	4

    	 

    

 

“Corporate Taxpayer Return”
means the federal and/or state and/or local Tax Return, as applicable, of the Corporate Taxpayer filed with respect to Taxes of
any Taxable Year.

 

“Cumulative Net Realized Tax Benefit”
for a Taxable Year means the cumulative amount of Realized Tax Benefits for all Taxable Years of the Corporate Taxpayer, up to
and including such Taxable Year, net of the cumulative amount of Realized Tax Detriments for the same period. The Realized Tax
Benefit and Realized Tax Detriment for each Taxable Year shall be determined based on the most recent Tax Benefit Schedule or Amended
Schedule, if any, in existence at the time of such determination.

 

“Default Rate” means LIBOR
plus 500 basis points.

 

“Determination” shall have
the meaning ascribed to such term in Section 1313(a) of the Code or similar provision of state and local tax law, as applicable,
or any other event (including the execution of IRS Form 870-AD) that finally and conclusively establishes the amount of any liability
for Tax and shall also include the acquiescence of the Corporate Taxpayer to the amount of any assessed liability for Tax.

 

“Early Termination Date”
means the date of an Early Termination Notice for purposes of determining the Early Termination Payment.

 

“Early Termination Rate”
means the lesser of (i) 6.5% per annum, compounded annually, and (ii) LIBOR plus 100 basis points.

 

“Exchange” means an acquisition
of Non-Voting Common Units or a purchase of Non-Voting Common Units by OpCo or the Corporate Taxpayer, including by way of an exchange
of stock of the Corporate Taxpayer for Non-Voting Common Units pursuant to the Exchange Agreement, in each case occurring on or
after the date of this Agreement.

 

“Exchange Agreement” means
the Exchange Agreement, dated as of the date hereof, by and among the Corporate Taxpayer, OpCo, Holdings (and its successors and
assigns) and any other Person that becomes a “Holder” thereunder, as the same may be amended, restated, supplemented
and/or otherwise modified, from time to time.

 

“Governmental Authority”
means the government of any nation, state, territory, city, locality or other political subdivision thereof, any entity or body
exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any
court, quasi-governmental authority, self-regulatory organization, commission, tribunal, agency or any political or other subdivision,
department, board, bureau, or branch or official of any of the foregoing.

 

    	5

    	 

    

 

“Holdings” means vTv Therapeutics
Holdings LLC, a Delaware limited liability company.

 

“Hypothetical Tax Liability”
means, with respect to any Taxable Year, the liability for Taxes of (i) the Corporate Taxpayer and (ii) without duplication, OpCo,
but only with respect to Taxes imposed on OpCo or its Subsidiaries and allocable to the Corporate Taxpayer (or to the other members
of the consolidated group of which the Corporate Taxpayer is the parent), in each case using the same methods, elections, conventions
and similar practices used on the relevant Corporate Taxpayer Return, but (x) using the Non-Stepped Up Tax Basis as reflected on
the Exchange Basis Schedule, including amendments thereto for the Taxable Year and (y) excluding any deduction attributable to
Imputed Interest for the Taxable Year. For the avoidance of doubt, Hypothetical Tax Liability shall be determined without taking
into account the carryover or carryback of any Tax item (or portions thereof) that is attributable to any of Basis Adjustments
or Imputed Interest (which shall include Tax items that would not be available for use but for the prior use of Tax items relating
to Basis Adjustments or Imputed Interest with respect to which there was no Realized Tax Benefit).

 

“Imputed Interest” shall
mean any interest imputed under Section 1272, 1274 or 483 or other provision of the Code and any similar provision of state and
local tax law with respect to the Corporate Taxpayer’s payment obligations under this Agreement.

 

“IPO Date” means the closing
date of the IPO.

 

“IRS” means the U.S. Internal
Revenue Service.

 

“LIBOR” means during any
period, an interest rate per annum equal to the one-year LIBOR reported, on the date two days prior to the first day of such period,
on the Telerate Page 3750 (or if such screen shall cease to be publicly available, as reported on Reuters Screen page “LIBOR01”
or by any other publicly available source of such market rate) for London interbank offered rates for United States dollar deposits
for such period.

 

“LLC Agreement” means the
Amended and Restated Limited Liability Company Agreement of OpCo, dated as of the date hereof, as the same may be amended, restated,
supplemented and/or otherwise modified, from time to time.

 

“Market Value” shall mean
the closing price of the Class A Common Stock on the applicable Exchange Date on the national securities exchange or interdealer
quotation system on which such Class A Common Stock is then traded or listed, as reported by the Wall Street Journal; provided,
that if the closing price is not reported by the Wall Street Journal for the applicable Exchange Date, then the Market Value
shall mean the closing price of the Class A Common Stock on the Business Day immediately preceding such Exchange Date on the national
securities exchange or interdealer quotation system on which such Class A Common Stock is then traded or listed, as reported by
the Wall Street Journal; provided, further, that if the Class A Common Stock is not then listed on a national
securities exchange or interdealer quotation system, the Market Value shall mean the cash consideration paid for Class A Common
Stock, or the fair market value of the other property delivered for Class A Common Stock, as determined by the Board in good faith.

 

    	6

    	 

    

 

“Non-Stepped Up Tax Basis”
means, with respect to any Reference Asset at any time, the Tax basis that such asset would have had at such time if no Basis Adjustments
had been made.

 

“Payment Date” means any
date on which a payment is required to be made pursuant to this Agreement.

 

“Permitted Holder” shall
mean vTv Therapeutics Holdings LLC, vTvx Holdings I LLC, vTvx Holdings II LLC, M&F TTP Holdings LLC, MacAndrews & Forbes
Incorporated, Ronald O. Perelman or any of his immediate family members, and their respective Affiliates and Related Parties.

 

“Person” means any individual,
corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association, organization, governmental
entity or other entity.

 

“Pre-Exchange Transfer”
means any transfer (including upon the death of a Member) or distribution in respect of one or more Non-Voting Common Units (i)
that occurs prior to an Exchange of such Non-Voting Common Units, and (ii) to which Section 743(b) or 734(b) of the Code applies.

 

“Realized Tax Benefit”
means, for a Taxable Year, the excess, if any, of the Hypothetical Tax Liability over the actual liability for Taxes of (i) the
Corporate Taxpayer and (ii) without duplication, OpCo, but only with respect to Taxes imposed on OpCo and allocable to the Corporate
Taxpayer (or to the other members of the consolidated group of which the Corporate Taxpayer is the parent) for such Taxable Year. 
If all or a portion of the actual liability for such Taxes for the Taxable Year arises as a result of an audit by a Taxing Authority
of any Taxable Year, such liability shall not be included in determining the Realized Tax Benefit unless and until there has been
a Determination.

 

“Realized Tax Detriment”
means, for a Taxable Year, the excess, if any, of the actual liability for Taxes of (i) the Corporate Taxpayer and (ii) without
duplication, OpCo, but only with respect to Taxes imposed on OpCo and allocable to the Corporate Taxpayer (or to the other members
of the consolidated group of which the Corporate Taxpayer is the parent) for such Taxable Year, over the Hypothetical Tax Liability
for such Taxable Year.  If all or a portion of the actual liability for such Taxes for the Taxable Year arises as a result
of an audit by a Taxing Authority of any Taxable Year, such liability shall not be included in determining the Realized Tax Detriment
unless and until there has been a Determination.

 

“Reference Asset” means
an asset that is held by OpCo, or by any of its direct or indirect subsidiaries treated as a partnership or disregarded entity
for purposes of the applicable Tax, at the time of an Exchange. A Reference Asset also includes any asset that is “substituted
basis property” under Section 7701(a)(42) of the Code with respect to a Reference Asset.

 

    	7

    	 

    

 

“Related Party” shall mean,
with respect to any Person, (a) any controlling stockholder, controlling member, general partner, subsidiary, spouse or immediate
family member (in the case of an individual) of such Person, (b) any estate, trust, corporation, partnership or other entity,
the beneficiaries, stockholders, partners or owners of which consist solely of one or more Permitted Holders and/or such other
Persons referred to in the immediately preceding clause (a), or (c) any executor, administrator, trustee, manager, director
or other similar fiduciary of any Person referred to in the immediately preceding clause (b), acting solely in such capacity.

 

“Schedule” means any of
the following: (i) an Exchange Basis Schedule, (ii) a Tax Benefit Schedule, or (iii) the Early Termination Schedule.

 

“Subsidiaries” shall have
the meaning ascribed to such term in the LLC Agreement.

 

“Tax Return” means any
return, declaration, report or similar statement required to be filed with respect to Taxes (including any attached schedules),
including any information return, claim for refund, amended return and declaration of estimated Tax.

 

“Taxable Year” means a
taxable year of the Corporate Taxpayer as defined in Section 441(b) of the Code or comparable section of state or local tax law,
as applicable (and, therefore, for the avoidance of doubt, may include a period of less than 12 months for which a Tax Return is
made), ending on or after the IPO Date.

 

“Taxes” means any and all
U.S. federal, state and local taxes, assessments or similar charges that are based on or measured with respect to net income or
profits, and any interest related to such Tax.

 

“Taxing Authority” shall
mean any domestic, federal, national, state, county or municipal or other local government, any subdivision, agency, commission
or authority thereof, or any quasi-governmental body exercising any taxing authority or any other authority exercising Tax regulatory
authority.

 

“Treasury Regulations”
means the final, temporary and proposed regulations under the Code promulgated from time to time (including corresponding provisions
and succeeding provisions) as in effect for the relevant taxable period.

 

“Valuation Assumptions”
shall mean, as of an Early Termination Date, the assumptions that (1) in each Taxable Year ending on or after such Early Termination
Date, the Corporate Taxpayer will have taxable income sufficient to fully utilize the deductions arising from the Basis Adjustments
and Imputed Interest during such Taxable Year or future Taxable Years (including, for the avoidance of doubt, Basis Adjustments
and Imputed Interest that would result from future Tax Benefit Payments that would be paid in accordance with the Valuation Assumptions)
in which such deductions would become available, (2) the U.S. federal income tax rates and state and local income tax rates that
will be in effect for each such Taxable Year will be those specified for each such Taxable Year by the Code and other law as in
effect on the Early Termination Date, (3) any loss carryovers generated by deductions arising from Basis Adjustments or Imputed
Interest that are available as of such Early Termination Date will be utilized by the Corporate Taxpayer on a pro rata basis from
the Early Termination Date through the scheduled expiration date of such loss carryovers, (4) any non-amortizable assets will be
disposed of on the fifteenth anniversary of the applicable Basis Adjustment; provided, that in the event of a Change of
Control, such non-amortizable assets shall be deemed disposed of at the time of sale of the relevant asset (if earlier than such
fifteenth anniversary), and (5) if, at the Early Termination Date, there are Non-Voting Common Units that have not been Exchanged,
then each such Non-Voting Common Unit shall be deemed to be Exchanged for the Market Value of the number of shares of Class A Common
Stock and the amount of cash that would be transferred if the Exchange occurred on the Early Termination Date.

 

    	8

    	 

    

 

(b)              
Each of the following terms is defined in the Section set forth opposite such term:

 

	Term	 	Section
	Agreement	 	Preamble
	Amended Schedule	 	2.03(b)
	Class A Common Stock	 	Recitals
	Class B Common Stock	 	Recitals
	Code	 	Recitals
	Corporate Taxpayer	 	Preamble
	Dispute	 	7.03(a)
	Early Termination Effective Date	 	4.02
	Early Termination Notice	 	4.02
	Early Termination Payment	 	4.03(b)
	Early Termination Schedule	 	4.02
	e-mail	 	7.01
	Exchange Basis Schedule	 	2.01
	Exchange Date	 	Recitals
	Expert	 	7.09
	Interest Amount	 	3.01(b)
	Material Objection Notice	 	4.02
	Members	 	Preamble
	Net Tax Benefit	 	3.01(b)
	Objection Notice	 	2.03(a)
	OpCo	 	Recitals
	Reconciliation Dispute	 	7.09
	Reconciliation Procedures	 	2.03(a)
	Senior Obligations	 	5.01
	Tax Benefit Payment	 	3.01(b)
	Tax Benefit Schedule	 	2.02(a)

 

(c)               
Other Definitional and Interpretative Provisions. The words “hereof”, “herein” and
“hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement. The captions herein are included for convenience of reference only and shall be ignored
in the construction or interpretation hereof. References to Articles and Sections are to Articles and Sections of this Agreement
unless otherwise specified. Any singular term in this Agreement shall be deemed to include the plural, and any plural term the
singular. Whenever the words “include”, “includes” or “including” are used in this Agreement,
they shall be deemed to be followed by the words “without limitation”, whether or not they are in fact followed by
those words or words of like import. “Writing”, “written” and comparable terms refer to printing, typing
and other means of reproducing words (including electronic media) in a visible form. References to any statute shall be deemed
to refer to such statute as amended from time to time and to any rules or regulations promulgated thereunder. References to any
agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time in accordance with
the terms hereof and thereof. References to any Person include the successors and permitted assigns of that Person. References
from or through any date mean, unless otherwise specified, from and including or through and including, respectively.

 

    	9

    	 

    

 

Article II

DETERMINATION OF REALIZED TAX BENEFIT

 

Section 2.01       
Basis Adjustment. Within 120 calendar days after the filing of the U.S. federal income tax return of the Corporate
Taxpayer for each Taxable Year in which any Exchange has been effected by any Member, the Corporate Taxpayer shall deliver to such
Member a schedule (the “Exchange Basis Schedule”) that shows, in reasonable detail necessary to perform the
calculations required by this Agreement, including with respect to each Exchanging party, (i) the Non-Stepped Up Tax Basis of the
Reference Assets as of each applicable Exchange Date, (ii) the Basis Adjustments with respect to the Reference Assets as a result
of the Exchanges effected in such Taxable Year, calculated (x) in the aggregate, (y) solely with respect to Exchanges by such Member
and (z) in the case of a Basis Adjustment under Section 734(b) of the Code solely with respect to the amount that is available
to the Corporate Taxpayer in such Taxable Year, (iii) the period (or periods) over which the Reference Assets are amortizable and/or
depreciable and (iv) the period (or periods) over which each Basis Adjustment is amortizable and/or depreciable.

 

Section 2.02       
Realized Tax Benefit and Realized Tax Detriment.

 

(a)               
Tax Benefit Schedule. Within 120 calendar days after the filing of the U.S. federal income tax return of the
Corporate Taxpayer for any Taxable Year in which there is a Realized Tax Benefit or Realized Tax Detriment all or a portion of
which is Attributable to a Member, the Corporate Taxpayer shall provide to such Member a schedule showing, in reasonable detail
and, at the request of such Member, with respect to each separate Exchange, the calculation of the Realized Tax Benefit or Realized
Tax Detriment and the portion Attributable to such Member for such Taxable Year (a “Tax Benefit Schedule”).
The Tax Benefit Schedule will become final as provided in Section 2.03(a) and may be amended as provided in Section 2.03(b) (subject
to the procedures set forth in Section 2.03(b)). 

 

(b)              
Applicable Principles. The Realized Tax Benefit or Realized Tax Detriment for each Taxable Year is intended
to measure the decrease or increase in the actual liability for Taxes of the Corporate Taxpayer for such Taxable Year attributable
to the Basis Adjustments and Imputed Interest, determined using a “with and without” methodology. For the avoidance
of doubt, the actual liability for Taxes will take into account the deduction of the portion of the Tax Benefit Payment that must
be accounted for as interest under the Code based upon the characterization of Tax Benefit Payments as additional consideration
payable by the Corporate Taxpayer for the Non-Voting Common Units acquired in an Exchange. Carryovers or carrybacks of any Tax
item attributable to the Basis Adjustment or Imputed Interest shall be considered to be subject to the rules of the Code and the
Treasury Regulations or the appropriate provisions of U.S. state and local income and franchise tax law, as applicable, governing
the use, limitation and expiration of carryovers or carrybacks of the relevant type. If a carryover or carryback of any Tax item
includes a portion that is attributable to the Basis Adjustment or Imputed Interest and another portion that is not, such portions
shall be considered to be used in accordance with the “with and without” methodology. The parties agree that (i) all
Tax Benefit Payments attributable to the Basis Adjustments (other than amounts accounted for as interest under the Code) will (A)
be treated as subsequent upward purchase price adjustments that give rise to further Basis Adjustments to Reference Assets for
the Corporate Taxpayer and (B) have the effect of creating additional Basis Adjustments to Reference Assets for the Corporate Taxpayer
in the year of payment, and (ii) as a result, such additional Basis Adjustments will be incorporated into the current year calculation
and into future year calculations, as appropriate.

 

    	10

    	 

    

 

Section 2.03       
Procedures, Amendments

 

(a)               
Procedure. Every time the Corporate Taxpayer delivers to a Member an applicable Schedule under this Agreement,
including any Amended Schedule delivered pursuant to Section 2.03(b) and any Early Termination Schedule or amended Early Termination
Schedule, the Corporate Taxpayer shall also (x) deliver to such Member schedules, valuation reports (if any), and work papers,
as determined by the Corporate Taxpayer or requested by such Member, providing reasonable detail regarding the preparation of the
Schedule and (y) allow such Member reasonable access at no cost to the appropriate representatives at the Corporate Taxpayer, as
determined by the Corporate Taxpayer or requested by such Member, in connection with a review of such Schedule. Without limiting
the application of the preceding sentence, each time the Corporate Taxpayer delivers to a Member a Tax Benefit Schedule, in addition
to the Tax Benefit Schedule duly completed, the Corporate Taxpayer shall deliver to such Member the Corporate Taxpayer Return,
the reasonably detailed calculation by the Corporate Taxpayer of the Hypothetical Tax Liability, the reasonably detailed calculation
by the Corporate Taxpayer of the actual Tax liability, as well as any other work papers as determined by the Corporate Taxpayer
or requested by such Member. An applicable Schedule or amendment thereto shall become final and binding on all parties 30 calendar
days from the first date on which the Member has received the applicable Schedule or amendment thereto unless such Member (i) within
30 calendar days after receiving an applicable Schedule or amendment thereto, provides the Corporate Taxpayer with notice of a
material objection to such Schedule (“Objection Notice”) made in good faith or (ii) provides a written waiver
of such right of any Objection Notice within the period described in clause (i) above, in which case such Schedule or amendment
thereto becomes binding on the date the waiver is received by the Corporate Taxpayer. If the parties, for any reason, are unable
to successfully resolve the issues raised in the Objection Notice within 30 calendar days after receipt by the Corporate Taxpayer
of an Objection Notice, the Corporate Taxpayer and the applicable Member shall employ the reconciliation procedures as described
in Section 7.09 (the “Reconciliation Procedures”).

 

    	11

    	 

    

 

(b)              
Amended Schedule. The applicable Schedule for any Taxable Year may be amended from time to time by the Corporate
Taxpayer (i) in connection with a Determination affecting such Schedule, (ii) to correct inaccuracies in the Schedule identified
as a result of the receipt of additional factual information relating to a Taxable Year after the date the Schedule was provided
to the applicable Member, (iii) to comply with the Expert’s determination under the Reconciliation Procedures, (iv) to reflect
a change in the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year attributable to a carryback or carryforward
of a loss or other tax item to such Taxable Year, (v) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment
for such Taxable Year attributable to an amended Tax Return filed for such Taxable Year, or (vi) to adjust the Exchange Basis Schedule
to take into account payments made pursuant to this Agreement (any such Schedule, an “Amended Schedule”). The
Corporate Taxpayer shall provide an Amended Schedule to each Member within 30 calendar days of the occurrence of an event referenced
in clauses (i) through (vi) of the preceding sentence.

  

Article III

TAX BENEFIT PAYMENTS

 

Section 3.01       
Payments.

 

(a)               
Within five (5) Business Days after all of the Tax Benefit Schedules with respect to a Taxable Year are delivered
to a Member pursuant to this Agreement, the Corporate Taxpayer shall pay to each Member for such Taxable Year the Tax Benefit Payment
in the amount determined pursuant to Section 3.01(b).  Each such Tax Benefit Payment to a Member shall be made by wire transfer
of immediately available funds to the bank account previously designated by such Member to the Corporate Taxpayer or as otherwise
agreed by the Corporate Taxpayer and such Member.  For the avoidance of doubt, no Tax Benefit Payment shall be made in respect
of estimated tax payments, including federal estimated income tax payments. Notwithstanding anything herein to the contrary, solely
at the election of a Member, which shall be made in a written notice to the Corporate Taxpayer in connection with the applicable
Exchange, in no event shall the aggregate Tax Benefit Payments in respect of such Exchange (other than amounts accounted for as
interest under the Code) exceed 50% of the amount equal to the sum of (A) the cash, excluding any Tax Benefit Payments, and (B)
the Market Value of the Class A Common Stock, received by such Member on such Exchange.

 

(b)              
A “Tax Benefit Payment” in respect of a Member, means an amount, not less than zero, equal to
the sum of the amount of the Net Tax Benefit Attributable to such Member and the related Interest Amount.  For the avoidance
of doubt, for Tax purposes, the Interest Amount shall not be treated as interest but instead shall be treated as additional consideration
for the acquisition of Non-Voting Common Units in Exchanges, unless otherwise required by law. The “Net Tax Benefit”
for a Taxable Year shall be an amount equal to the excess, if any, of 85% of the Cumulative Net Realized Tax Benefit as of
the end of such Taxable Year over the total amount of Tax Benefit Payments previously made under this Section 3.01 (excluding payments
attributable to Interest Amounts); provided, for the avoidance of doubt, that such Member shall not be required to return
any portion of any previously made Tax Benefit Payment. The “Interest Amount” shall equal the interest on the
amount of the Net Tax Benefit Attributable to such Member calculated at the Agreed Rate from the due date (without extensions)
for filing the Corporate Taxpayer Return with respect to Taxes for such Taxable Year until the Payment Date of the applicable Tax
Benefit Payment. Notwithstanding the foregoing, unless the Member elects to receive the lump-sum payment pursuant to the following
sentence, for each Taxable Year ending on or after the date of a Change of Control, all Tax Benefit Payments, whether paid with
respect to the Non-Voting Common Units that were Exchanged (i) prior to the date of such Change of Control or (ii) on or after
the date of such Change of Control, shall be calculated by utilizing Valuation Assumptions (1) and (3), substituting in each case
the terms “the closing date of a Change of Control” for an “Early Termination Date.” In connection with
any Change of Control, at the election of a Member, all obligations hereunder with respect to such Member shall be accelerated,
and such obligations shall be calculated as if an Early Termination Notice had been delivered on the date of such election and
shall include, but not be limited to, (1) the Early Termination Payment to such Member calculated as if an Early Termination Notice
had been delivered on the date of such election, (2) any Tax Benefit Payment agreed to by the Corporate Taxpayer and such Member
as due and payable but unpaid as of the date of such Member’s election, and (3) any Tax Benefit Payment due for the Taxable
Year ending with or including the date of such Member’s election; provided, that procedures similar to the procedures
of Section 4.02 shall apply with respect to the determination of the amount payable by the Corporate Taxpayer pursuant to this
sentence.

 

    	12

    	 

    

 

Section 3.02       
No Duplicative Payments. It is intended that the provisions of this Agreement will not result in duplicative
payment of any amount (including interest) required under this Agreement.  The provisions of this Agreement shall be construed
in the appropriate manner to ensure such intentions are realized.

 

Article IV

TERMINATION

 

Section 4.01       
Termination, Early Termination and Breach of Agreement.

 

(a)               
Unless terminated earlier pursuant to Section 4.01(b) or Section 4.01(c), this Agreement will terminate when there
is no further potential for a Tax Benefit Payment pursuant to this Agreement.

 

(b)              
The Corporate Taxpayer may terminate this Agreement with respect to all amounts payable to the Members and with respect
to all of the Non-Voting Common Units held (or previously held and exchanged) by all Members at any time by paying to each Member
the Early Termination Payment in respect of such Member; provided, however, that this Agreement shall only terminate
pursuant to this Section 4.01(b) upon the receipt of the Early Termination Payment by all Members; and provided, further,
that the Corporate Taxpayer may withdraw any notice to execute its termination rights under this Section 4.01(b) prior to the time
at which any Early Termination Payment has been paid.  Upon payment of the Early Termination Payment by the Corporate Taxpayer
in accordance with this Section 4.01(b), neither the Members nor the Corporate Taxpayer shall have any further payment obligations
under this Agreement, other than for any (1) Tax Benefit Payment agreed to by the Corporate Taxpayer and a Member as due and payable
but unpaid as of the Early Termination Notice and (2) Tax Benefit Payment due for the Taxable Year ending with or including the
date of the Early Termination Notice (except to the extent that the amount described in clause (2) is included in the Early Termination
Payment).  If an Exchange occurs after the Corporate Taxpayer makes the Early Termination Payment pursuant to this Section
4.01(b), the Corporate Taxpayer shall have no obligations under this Agreement with respect to such Exchange. If the Corporate
Taxpayer terminates, or proposes to terminate, this Agreement by making, or proposing to make, the Early Termination Payment to
the Members under such agreement, then each Member that is a party to this Agreement shall have the right to cause the Corporate
Taxpayer to make an Early Termination Payment to such Member under this Agreement; provided that the procedures of this Article
IV shall apply to such Early Termination Payment as if the Corporate Taxpayer had delivered an Early Termination Notice to such
electing Members; provided further that a Member may elect to receive an Early Termination Payment pursuant to this sentence notwithstanding
the fact that not all Members under this Agreement elect to receive such a payment.

 

    	13

    	 

    

 

(c)               
In the event that the Corporate Taxpayer breaches any of its material obligations under this Agreement, whether as
a result of failure to make any payment when due, failure to honor any other material obligation required hereunder or by operation
of law as a result of the rejection of this Agreement in a case commenced under the Bankruptcy Code or otherwise, and does not
cure such breach within ninety (90) days of receipt of notice of such breach, then all obligations hereunder shall be accelerated
and such obligations shall be calculated as if an Early Termination Notice had been delivered on the date of such breach and shall
include, but not be limited to, (1) the Early Termination Payment calculated as if an Early Termination Notice had been delivered
on the date of a breach, (2) any Tax Benefit Payment agreed to by the Corporate Taxpayer and any Members as due and payable but
unpaid as of the date of a breach, and (3) any Tax Benefit Payment due for the Taxable Year ending with or including the date of
a breach; provided that procedures similar to the procedures of Section 4.02 shall apply with respect to the determination of the
amount payable by the Corporate Taxpayer pursuant to this sentence.  Notwithstanding the foregoing, in the event that the
Corporate Taxpayer breaches this Agreement, the Members shall be entitled to elect to receive the amounts set forth in clauses
(1), (2) and (3) above or to seek specific performance of the terms hereof.  The parties agree that the failure to make any
payment due pursuant to this Agreement within three months of the date such payment is due shall be deemed to be a breach of a
material obligation under this Agreement for all purposes of this Agreement, and that it will not be considered to be a breach
of a material obligation under this Agreement to make a payment due pursuant to this Agreement within three months of the date
such payment is due. Notwithstanding anything in this Agreement to the contrary, it shall not be a breach of this Agreement if
the Corporate Taxpayer fails to make any payment due pursuant to this Agreement when due to the extent the Corporate Taxpayer has
insufficient funds to make such payment; provided that the interest provisions of Section 5.02 shall apply to such late
payment (unless the Corporate Taxpayer does not have sufficient cash to make such payment as a result of limitations imposed by
credit agreements to which the Corporate Taxpayer or its Subsidiaries is a party, in which case Section 5.02 shall apply, but the
Default Rate shall be replaced by the Agreed Rate); provided, further, that the Corporate Taxpayer shall promptly
(and in any event, within two (2) Business Days), pay all such unpaid payments, together with accrued and unpaid interest thereon,
immediately following such time that the Corporate Taxpayer has, and to the extent the Corporate Taxpayer has, sufficient funds
to make such payment, and the failure of the Corporate Taxpayer to do so shall constitute a breach of this Agreement. For the avoidance
of doubt, all cash and cash equivalents used or to be used to pay dividends by, or repurchase equity securities of, the Corporate
Taxpayer shall be deemed to be funds sufficient and available to pay such unpaid payments, together with any accrued and unpaid
interest thereon.

 

    	14

    	 

    

 

(d)              
The undersigned hereby acknowledge and agree that the timing, amounts and aggregate value of Tax Benefit Payments
pursuant to this Agreement are not reasonably ascertainable.

 

Section 4.02       
Early Termination Notice. If the Corporate Taxpayer chooses to exercise its right of early termination under
Section 4.01(b) above, the Corporate Taxpayer shall deliver to each Member notice of such intention to exercise such right (“Early
Termination Notice”) and a schedule (the “Early Termination Schedule”) specifying the Corporate Taxpayer’s
intention to exercise such right and showing in reasonable detail the calculation of the Early Termination Payment for such Member.
The Early Termination Schedule shall become final and binding on such Member thirty (30) calendar days from the first date on which
such Member has received such Schedule or amendment thereto unless such Member (i) within thirty (30) calendar days after receiving
the Early Termination Schedule, provides the Corporate Taxpayer with notice of a material objection to such Schedule made in good
faith (“Material Objection Notice”) or (ii) provides a written waiver of such right of a Material Objection
Notice within the period described in clause (i) above, in which case such Schedule becomes binding on the date the waiver is received
by the Corporate Taxpayer (such thirty (30) calendar day date as modified, if at all, by clauses (i) or (ii), the “Early
Termination Effective Date”). If the Corporate Taxpayer and such Member, for any reason, are unable to successfully resolve
the issues raised in such notice within thirty (30) calendar days after receipt by the Corporate Taxpayer of the Material Objection
Notice, the Corporate Taxpayer and such Member shall employ the Reconciliation Procedures. 

 

Section 4.03       
Payment upon Early Termination.

 

(a)               
Within three (3) Business Days after the Early Termination Effective Date, the Corporate Taxpayer shall pay to each
Member an amount equal to the Early Termination Payment in respect of such Member. Such payment shall be made by wire transfer
of immediately available funds to a bank account or accounts designated by such Member or as otherwise agreed by the Corporate
Taxpayer and such Member.

 

(b)              
 “Early Termination Payment” in respect of a Member shall equal the present value, discounted
at the Early Termination Rate as of the Early Termination Effective Date, of all Tax Benefit Payments in respect of such Member
that would be required to be paid by the Corporate Taxpayer beginning from the Early Termination Date and assuming that the Valuation
Assumptions are applied. 

 

Article V

 

SUBORDINATION
AND LATE PAYMENTS

 

Section 5.01        Subordination.
Notwithstanding any other provision of this Agreement to the contrary, any Tax Benefit Payment or Early Termination Payment
required to be made by the Corporate Taxpayer to any Member under this Agreement shall rank subordinate and junior in right
of payment to any principal, interest or other amounts due and payable in respect of any obligations in respect of
indebtedness for borrowed money of the Corporate Taxpayer and its Subsidiaries (“Senior Obligations”) and
shall rank pari passu with all current or future unsecured obligations of the Corporate Taxpayer that are not Senior
Obligations.

 

    	15

    	 

    

 

Section 5.02       
Late Payments by the Corporate Taxpayer. The amount of all or any portion of any Tax Benefit Payment or Early
Termination Payment not made to the applicable Member when due under the terms of this Agreement shall be payable together with
any interest thereon, computed at the Default Rate and commencing from the date on which such Tax Benefit Payment or Early Termination
Payment was due and payable. The Corporate Taxpayer shall promptly (and in any event, within two (2) Business Days), pay all unpaid
Tax Benefit Payments and Early Termination Payments, together with accrued and unpaid interest thereon, immediately following such
time that the Corporate Taxpayer has, and to the extent the Corporate Taxpayer has, sufficient funds to make such payment. For
the avoidance of doubt, all cash and cash equivalents used or to be used to pay dividends by, or repurchase equity securities of,
the Corporate Taxpayer shall be deemed to be funds sufficient and available to pay unpaid Tax Benefit Payments and Early Termination
Payments, together with any accrued and unpaid interest thereon.

 

Article VI

 

NO
DISPUTES; CONSISTENCY; COOPERATION

 

Section 6.01       
Participation in the Corporate Taxpayer’s and OpCo’s Tax Matters. Except as otherwise provided
herein, the Corporate Taxpayer shall have full responsibility for, and sole discretion over, all Tax matters concerning the Corporate
Taxpayer and OpCo, including the preparation, filing or amending of any Tax Return and defending, contesting or settling any issue
pertaining to Taxes. Notwithstanding the foregoing, the Corporate Taxpayer shall notify a Member of, and keep such Member reasonably
informed with respect to, the portion of any audit of the Corporate Taxpayer and OpCo by a Taxing Authority the outcome of which
is reasonably expected to affect the rights and obligations of such Member under this Agreement, and shall provide to such Member
reasonable opportunity to provide information and other input to the Corporate Taxpayer, OpCo and their respective advisors concerning
the conduct of any such portion of such audit; provided, however, that the Corporate Taxpayer and OpCo shall not
be required to take any action that is inconsistent with any provision of the LLC Agreement.

 

Section 6.02       
Consistency. The Corporate Taxpayer and the Members agree
to report and cause to be reported for all purposes, including federal, state and local Tax purposes and financial reporting purposes,
all Tax-related items (including the Basis Adjustments and each Tax Benefit Payment) in a manner consistent with that specified
by the Corporate Taxpayer in any Schedule required to be provided by or on behalf of the Corporate Taxpayer under this Agreement
unless otherwise required by law. Any dispute as to required Tax or financial reporting shall be subject to Section 7.09.

 

Section 6.03       
Cooperation. Each of the Corporate Taxpayer and each Member shall (a) furnish to the other party in a timely
manner such information, documents and other materials as the other party may reasonably request for purposes of making any determination
or computation necessary or appropriate under this Agreement, preparing any Tax Return or contesting or defending any audit, examination
or controversy with any Taxing Authority, (b) make itself available to the other party and its representatives to provide explanations
of documents and materials and such other information as the other party or its representatives may reasonably request in connection
with any of the matters described in clause (a) above, and (c) reasonably cooperate in connection with any such matter, and the
Corporate Taxpayer shall reimburse the applicable Member for any reasonable third-party costs and expenses incurred pursuant to
this Section 6.03.

 

    	16

    	 

    

 

Article VII

 

MISCELLANEOUS

 

Section 7.01       
Notices. All notices, requests and other communications to any party hereunder shall be in writing (including
facsimile transmission and electronic mail (“e-mail”) transmission, so long as a receipt of such e-mail is requested
and received) and shall be given to such party as set forth below, or pursuant to such other instructions as may be designated
in writing by the party to receive such notice:

 

	 	If to the Corporate Taxpayer, to: 
	 	 
	 	vTv Therapeutics Inc.
	 	4170 Mendenhall Oaks Pkwy
	 	High Point, NC 27265
	 	Telephone:	(336) 841-0300
	 	Facsimile:	(336) 841-0310
	 	Attention:	Stephen L. Holcombe
	 	Email:	sholcombe@vtvtherapeutics.com
	 	 
	 	with a copy (which shall not constitute notice to the Corporate Taxpayer) to:
	 	 
	 	Paul, Weiss, Rifkind, Wharton & Garrison LLP
	 	1285 Avenue of the Americas
	 	New York, NY  10019-6064
	 	Telephone:	(212) 373-3000
	 	Facsimile:	(212) 757-3990
	 	Attention:	Jeffrey B. Samuels
	 	 	Lawrence G. Wee
	 	Email:	jsamuels@paulweiss.com
	 	 	lwee@paulweiss.com
	 	 
	 	If to the applicable Member, to the address, facsimile number or e-mail address specified for such party on the Member Schedule to the LLC Agreement.

 

All such notices, requests and other communications
shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. on a Business Day in the
place of receipt. Otherwise, any such notice, request or communication shall be deemed to have been received on the next succeeding
Business Day in the place of receipt.

 

    	17

    	 

    

 

Section 7.02       
Binding Effect; Benefit; Assignment.

 

(a)               
The provisions of this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors and assigns. No provision of this Agreement is intended to confer any rights, benefits, remedies, obligations
or liabilities hereunder upon any Person other than the parties hereto and their respective successors and assigns. The Corporate
Taxpayer shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to
all or substantially all of the business or assets of the Corporate Taxpayer, by written agreement, expressly to assume and agree
to perform this Agreement in the same manner and to the same extent that the Corporate Taxpayer would be required to perform if
no such succession had taken place.

 

(b)              
A Member, in its sole discretion, may assign any of its rights under this Agreement (including in connection with
a dissolution or liquidation of a Member) to any Person as long as such transferee has executed and delivered, or, in connection
with such transfer, executes and delivers, a joinder to this Agreement, in form of Exhibit A, agreeing to become a “Member”
for all purposes of this Agreement, except as otherwise provided in such joinder; provided, that a Member’s rights
under this Agreement shall be assignable by such Member under the procedure in this Section 7.02(b) regardless of whether
such Member continues to hold any interests in OpCo or the Corporate Taxpayer or has fully transferred any such interests.

 

Section 7.03       
Resolution of Disputes.

 

(a)               
Except for Reconciliation Disputes subject to Section 7.09, any and all disputes which cannot be settled amicably, including
any ancillary claims of any party, arising out of, relating to or in connection with the validity, negotiation, execution, interpretation,
performance or non-performance of this Agreement (including the validity, scope and enforceability of this arbitration provision)
(each a “Dispute”) shall be finally settled by arbitration conducted by a single arbitrator in Delaware in accordance
with the then-existing Rules of Arbitration of the International Chamber of Commerce. If the parties to the Dispute fail to agree
on the selection of an arbitrator within ten (10) days of the receipt of the request for arbitration, the International Chamber
of Commerce shall make the appointment. The arbitrator shall be a lawyer admitted to the practice of law in the State of Delaware
and shall conduct the proceedings in the English language. Performance under this Agreement shall continue if reasonably possible
during any arbitration proceedings. 

 

(b)              
 Notwithstanding the provisions of paragraph (a), the Corporate Taxpayer may bring an action or special proceeding in any
court of competent jurisdiction for the purpose of compelling a party to arbitrate, seeking temporary or preliminary relief in
aid of an arbitration hereunder, and/or enforcing an arbitration award and, for the purposes of this paragraph (b), each Member
(i) expressly consents to the application of paragraph (c) of this Section 7.03 to any such action or proceeding, (ii) agrees that
proof shall not be required that monetary damages for breach of the provisions of this Agreement would be difficult to calculate
and that remedies at law would be inadequate, and (iii) irrevocably appoints the Corporate Taxpayer as agent of such Member for
service of process in connection with any such action or proceeding and agrees that service of process upon such agent, who shall
promptly advise such Member of any such service of process, shall be deemed in every respect effective service of process upon
such Member in any such action or proceeding.

 

    	18

    	 

    

 

(c)               
 EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE CHANCERY COURT OF THE STATE OF DELAWARE OR, IF SUCH COURT
DECLINES JURISDICTION, THE COURTS OF THE STATE OF DELAWARE SITTING IN WILMINGTON, DELAWARE, AND OF THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE SITTING IN WILMINGTON, DELAWARE, AND ANY APPELLATE COURT FROM ANY THEREOF, FOR THE PURPOSE OF ANY
JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 7.03, OR ANY JUDICIAL PROCEEDING ANCILLARY TO AN
ARBITRATION OR CONTEMPLATED ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT. Such ancillary judicial proceedings
include any suit, action or proceeding to compel arbitration, to obtain temporary or preliminary judicial relief in aid of arbitration,
or to confirm an arbitration award. The parties acknowledge that the fora designated by this paragraph (c) have a reasonable relation
to this Agreement, and to the parties’ relationship with one another.

 

(d)              
The parties hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter may
have to personal jurisdiction or to the laying of venue of any such ancillary suit, action or proceeding brought in any court referred
to in the preceding paragraph of this Section 7.03 and such parties agree not to plead or claim the same.

 

Section 7.04       
Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same instrument. Until and unless each party has received
a counterpart hereof signed by the other party hereto, this Agreement shall have no effect and no party shall have any right or
obligation hereunder (whether by virtue of any other oral or written agreement or other communication).

 

Section 7.05       
Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the
subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties
with respect to the subject matter of this Agreement. Nothing in this Agreement shall create any third-party beneficiary rights
in favor of any Person or other party hereto.

 

Section 7.06       
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants
and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated
so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any party. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby
are consummated as originally contemplated to the fullest extent possible.

 

    	19

    	 

    

 

Section 7.07       
Amendment. No provision of this Agreement may be amended
unless such amendment is approved in writing by the Corporate Taxpayer and by Persons who would be entitled to receive at least
two-thirds of the Early Termination Payments payable to all Persons entitled to Early Termination Payments under this Agreement
if the Corporate Taxpayer had exercised its right of early termination on the date of the most recent Exchange prior to such amendment
(excluding, for purposes of this sentence, all payments made to any Persons pursuant to this Agreement since the date of such most
recent Exchange); provided, that no such amendment shall be effective if such amendment will have a disproportionate effect
on the payments certain Persons will or may receive under this Agreement unless all such Persons disproportionately affected consent
in writing to such amendment. No provision of this Agreement may be waived unless such waiver is in writing and signed by the party
against whom the waiver is to be effective.

 

Section 7.08       
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware, without regard to the conflicts of law rules of such State that would result in the application of the laws of any
other State.

 

Section 7.09       
Reconciliation. In the event that the Corporate Taxpayer and a Member are unable to resolve a disagreement
with respect to the matters governed by Sections 2.03, 3.01(b), 4.02 and 6.02 within the relevant period designated in this Agreement
(“Reconciliation Dispute”), the Reconciliation Dispute shall be submitted for determination to a nationally
recognized expert (the “Expert”) in the particular area of disagreement mutually acceptable to both parties.
The Expert shall be a partner or principal in a nationally recognized accounting or law firm, and unless the Corporate Taxpayer
and such Member agree otherwise, the Expert shall not, and the firm that employs the Expert shall not, have any material relationship
with the Corporate Taxpayer or such Member or other actual or potential conflict of interest. If the parties are unable to agree
on an Expert within fifteen (15) calendar days of receipt by the respondent(s) of written notice of a Reconciliation Dispute, the
Expert shall be appointed by the International Chamber of Commerce Centre for Expertise. The Expert shall resolve any matter relating
to the Exchange Basis Schedule or an amendment thereto or the Early Termination Schedule or an amendment thereto within thirty
(30) calendar days and shall resolve any matter relating to a Tax Benefit Schedule or an amendment thereto within fifteen (15)
calendar days or as soon thereafter as is reasonably practicable, in each case after the matter has been submitted to the Expert
for resolution.  Notwithstanding the preceding sentence, if the matter is not resolved before any payment that is the subject
of a disagreement would be due (in the absence of such disagreement) or any Tax Return reflecting the subject of a disagreement
is due, the undisputed amount shall be paid on the date prescribed by this Agreement and such Tax Return may be filed as prepared
by the Corporate Taxpayer, subject to adjustment or amendment upon resolution.  The costs and expenses relating to the engagement
of such Expert or amending any Tax Return shall be borne by the Corporate Taxpayer, except as provided in the next sentence. 
The Corporate Taxpayer and such Member shall bear their own costs and expenses of such proceeding, unless (i) the Expert substantially
adopts such Member’s position, in which case the Corporate Taxpayer shall reimburse such Member for any reasonable out-of-pocket
costs and expenses in such proceeding, or (ii) the Expert substantially adopts the Corporate Taxpayer’s position, in which
case such Member shall reimburse the Corporate Taxpayer for any reasonable out-of-pocket costs and expenses in such proceeding. 
Any dispute as to whether a dispute is a Reconciliation Dispute within the meaning of this Section 7.09 shall be decided by the
Expert.  The Expert shall finally determine any Reconciliation Dispute and the determinations of the Expert pursuant to this
Section 7.09 shall be binding on the Corporate Taxpayer and such Member and may be entered and enforced in any court having jurisdiction. 

 

    	20

    	 

    

 

Section 7.10       
Withholding. The Corporate Taxpayer shall be entitled to deduct and withhold from any payment payable pursuant
to this Agreement such amounts as the Corporate Taxpayer is required to deduct and withhold with respect to the making of such
payment under the Code or any provision of state, local or foreign tax law. To the extent that amounts are so withheld and paid
over to the appropriate Taxing Authority by the Corporate Taxpayer, such withheld amounts shall be treated for all purposes of
this Agreement as having been paid to the applicable Member.

 

Section 7.11       
Admission of the Corporate Taxpayer into a Consolidated Group; Transfers of Corporate Assets. 

 

(a)               
If the Corporate Taxpayer is or becomes a member of an affiliated or consolidated group of corporations that files
a consolidated income tax return pursuant to Sections 1501 et seq. of the Code or any corresponding provisions of state or local
law, then: (i) the provisions of this Agreement shall be applied with respect to the group as a whole; and (ii) Tax Benefit Payments,
Early Termination Payments and other applicable items hereunder shall be computed with reference to the consolidated taxable income
of the group as a whole.

 

(b)              
If any entity that is obligated to make a Tax Benefit Payment or Early Termination Payment hereunder transfers one
or more assets to a corporation (or a Person classified as a corporation for U.S. federal income tax purposes) with which such
entity does not file a consolidated tax return pursuant to Section 1501 of the Code, such entity, for purposes of calculating the
amount of any Tax Benefit Payment or Early Termination Payment (e.g., calculating the gross income of the entity and determining
the Realized Tax Benefit of such entity) due hereunder, shall be treated as having disposed of such asset in a fully taxable transaction
on the date of such contribution.  The consideration deemed to be received by such entity shall be equal to the fair market
value of the contributed asset. For purposes of this Section 7.11, a transfer of a partnership interest shall be treated as
a transfer of the transferring partner’s share of each of the assets and liabilities of that partnership.

 

Section 7.12       
Confidentiality. Section 12.11 (Confidentiality) of the LLC Agreement as of the date of this Agreement shall
apply to any information of the Corporate Taxpayer provided to the Members and their assignees pursuant to this Agreement.

 

Section 7.13       
Partnership Agreement. This Agreement shall be treated as part of the partnership agreement of OpCo as described
in Section 761(c) of the Code, and Sections 1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the Treasury Regulations.

 

[Remainder of Page Intentionally
Left Blank]

 

    	21

    	 

    

 

IN WITNESS WHEREOF, the Corporate Taxpayer
and each Member set forth below have duly executed this Agreement as of the date first written above.

 

	 	CORPORATE TAXPAYER:
	 	 
	 	vTv Therapeutics Inc.
	 	 
	 	By:	/s/ Stephen L. Holcombe
	 	 	Name: Stephen L. Holcombe
	 		Title: President and Chief Executive Officer
	 	 	 	 
	 	MEMBERS:
	 	 
	 	vTv Therapeutics Holdings, LLC, for the benefit of M&F TTP Holdings, LLC
	 	 	 
	 	/s/ Stephen L. Holcombe
	 	By: Stephen L. Holcombe
	 	Title: President
	 	 	 
	 	M&F TTP Holdings, LLC
	 	 	 
	 	/s/ Paul G. Savas
	 	By: Paul G. Savas
	 	Title: Executive Vice President and Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature Page to Tax Receivable Agreement

 

    	 

    	 

    

 

Exhibit A

 Form of Joinder

 

This JOINDER (this “Joinder”)
to the Tax Receivable Agreement (as defined below), dated as of ____________, by and among vTv Therapeutics Inc., a Delaware corporation
(the “Corporate Taxpayer”), and ______________ (“Permitted Transferee”).

 

WHEREAS, on ____________, Permitted Transferee
acquired (the “Acquisition”) [___ Non-Voting Common Units][the right to receive any and all payments that may
become due and payable under the Tax Receivable Agreement with respect to ___ Non-Voting Common Units that were previously Exchanged
and are described in greater detail in Annex A to this Joinder] (collectively, “Interests” and, together with
all other interests hereinafter acquired by the Permitted Transferee from Transferor, the “Acquired Interests”)
from ______________ (“Transferor”); and

 

WHEREAS, Transferor, in connection with the
Acquisition, has required Permitted Transferee to execute and deliver this Joinder pursuant to Section 7.02(b) of the Tax Receivable
Agreement, dated as of [_________ ___], 2015, by and among the Corporate Taxpayer and each Member (as defined therein) (the “Tax
Receivable Agreement”).

 

NOW, THEREFORE, in consideration of the foregoing
and the respective covenants and agreements set forth herein, and intending to be legally bound hereby, the parties hereto agree
as follows:

 

Section 1.01Definitions. To the
extent capitalized words used in this Joinder are not defined in this Joinder, such words shall have the respective meanings set
forth in the Tax Receivable Agreement.

 

Section 1.02Joinder. Permitted
Transferee hereby acknowledges and agrees to become a “Member” (as defined in the Tax Receivable Agreement) for all
purposes of the Tax Receivable Agreement. Permitted Transferee hereby acknowledges the terms of Section 7.02(b) of the Tax Receivable
Agreement and agrees to be bound by Section 7.12 of the Tax Receivable Agreement.

 

Section 1.03Notice. Any notice,
request, consent, claim, demand, approval, waiver or other communication hereunder to Permitted Transferee shall be delivered or
sent to Permitted Transferee at the address set forth on the signature page hereto in accordance with Section 7.01 of the Tax Receivable
Agreement.

 

Section 1.04Governing Law. This
Joinder shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflicts
of law rules of such State that would result in the application of the laws of any other State.

 

    	 

    	 

    

 

IN WITNESS WHEREOF, this Joinder has been
duly executed and delivered by Permitted Transferee as of the date first above written.

 

	 	[PERMITTED TRANSFEREE]
	 	 	 
	 	By:	 
	 		Name: 	 
	 		Title:	 
	 	 
	 	 
	 	Address for notices:Exhibit 10.6

 

vTv Therapeutics Inc. 2015 Omnibus Equity
Incentive Plan

 

1.      Purpose.
The vTv Therapeutics Inc. 2015 Omnibus Equity Incentive Plan (the “Plan”) is intended to help vTv
Therapeutics Inc., a Delaware corporation (including any successor thereto, the “Company”) and its
Affiliates (i) attract and retain key personnel by providing them the opportunity to acquire an equity interest in
the Company or other incentive compensation measured by reference to the value of Common Stock and (ii) align the interests
of key personnel with those of the Company’s shareholders.

 

2.     
Effective Date; Duration. The Plan shall be effective as of July 29, 2015 (the “Effective Date”).
The expiration date of the Plan, on and after which date no Awards may be granted, shall be the tenth anniversary of the Effective
Date; provided, however, that such expiration shall not affect Awards then outstanding, and the terms and conditions
of the Plan shall continue to apply to such Awards.

 

3.     
Definitions. The following definitions shall apply throughout the Plan.

 

(a)               
“Affiliate” means (i) any person or entity that directly or indirectly controls, is controlled by or
is under common control with the Company and/or (ii) to the extent provided by the Committee, any person or entity in which the
Company has a significant interest. The term “control” (including, with correlative meaning, the terms “ controlled
by” and “under common control with”), as applied to any person or entity, means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of such person or entity, whether through the ownership
of voting or other securities, by contract or otherwise.

 

(b)              
“Award” means, individually or collectively, any Incentive Stock Option, Nonqualified Stock Option, Stock
Appreciation Right, Restricted Stock, Restricted Stock Unit, Other Stock-Based Award and/or Performance Compensation Award granted
under the Plan.

 

(c)               
“Beneficial Ownership” has the meaning set forth in Rule 13d-3 promulgated under Section 13 of the Exchange
Act.

 

(d)              
“Board” means the Board of Directors of the Company.

 

(e)               
“Cause” means, in the case of a particular Award, unless the applicable Award agreement states otherwise,
the Company or an Affiliate having “cause” to terminate the Participant’s employment or service, (i) as such
term is defined in any employment, consulting, change-in-control, severance or any other agreement between the Participant and
the Company or an Affiliate in effect at the time of such termination or (ii) in the absence of any such employment, consulting,
change-in-control, severance or any other agreement (or the absence of any definition of “cause” or term of similar
import therein), due to the Participant’s (A) willful misconduct or gross neglect of his duties; (B) having engaged in conduct
harmful (whether financially, reputationally or otherwise) to the Company or an Affiliate; (C) failure or refusal to perform his
duties; (D) conviction of, or guilty or no contest plea to, a felony or any crime involving dishonesty or moral turpitude; (E)
willful violation of the written policies of the Company or an Affiliate; (F) misappropriation or misuse of Company or Affiliate
funds or property or other act of personal dishonesty in connection with his employment; or (G) willful breach of fiduciary duty.
The determination of whether Cause exists shall be made by the Committee in its sole discretion.

 

(f)               
“Change in Control” shall, in the case of a particular Award, unless the applicable Award agreement (or
any employment, consulting, change-in-control, severance or other agreement between the Participant and the Company or an Affiliate)
states otherwise, be deemed to occur upon any of the following events:

 

    	 

    	 

    

(i)                
the acquisition by any Person of Beneficial Ownership of 50% or more (on a fully diluted basis) of either (A) the then outstanding
shares of Common Stock, including Common Stock issuable upon the exercise of options or warrants, the conversion of convertible
stock or debt, and the exercise of any similar right to acquire such Common Stock (the “Outstanding Company Common
Stock”); or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote
in the election of directors (the “Outstanding Company Voting Securities”); but excluding any acquisition
by the Company or any of its Affiliates, or by Ronald O. Perelman or, his Permitted Transferees or any of their respective Affiliates
or by any employee benefit plan sponsored or maintained by the Company or any of its Affiliates;

 

(ii)              
a change in the composition of the Board such that members of the Board during any consecutive 12-month period (the “Incumbent
Directors”) cease to constitute a majority of the Board. Any person becoming a director through election or nomination
for election approved by a valid vote of at least two-thirds of the Incumbent Directors shall be deemed an Incumbent Director;
provided, however, that no individual becoming a director as a result of an actual or threatened election contest,
as such terms are used in Rule 14a-12 of Regulation 14A promulgated under the Exchange Act, or as a result of any other actual
or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed to be an Incumbent
Director;

 

(iii)            
the approval by the shareholders of the Company of a plan of complete dissolution or liquidation of the Company; or

 

(iv)            
the consummation of a reorganization, recapitalization, merger, consolidation, statutory share exchange or similar form
of corporate transaction involving the Company (a “Business Combination”), or sale, transfer or other
disposition of all or substantially all of the business or assets of the Company to an entity that is not an Affiliate of the Company
(a “Sale”), unless immediately following such Business Combination or Sale: (A) more than 50% of the
total voting power of the entity resulting from such Business Combination or the entity that acquired all or substantially all
of the business or assets of the Company in such Sale (in either case, the “Surviving Company”), or the
ultimate parent entity that has Beneficial Ownership of sufficient voting power to elect a majority of the board of directors (or
analogous governing body) of the Surviving Company (the “Parent Company”), is represented by the Outstanding
Company Voting Securities that were outstanding immediately prior to such Business Combination or Sale (or, if applicable, is represented
by shares into which the Outstanding Company Voting Securities were converted pursuant to such Business Combination or Sale), and
such voting power among the holders thereof is in substantially the same proportion as the voting power of the Outstanding Company
Voting Securities among the holders thereof immediately prior to the Business Combination or Sale, (B) no Person (other than any
employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company), is or becomes the beneficial owner,
directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect members
of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Surviving
Company) and (C) at least a majority of the members of the board of directors (or the analogous governing body) of the Parent Company
(or, if there is no Parent Company, the Surviving Company) following the consummation of the Business Combination or Sale were
Board members at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination
or Sale.

 

    	2

    	 

    

Notwithstanding the foregoing,
a “Change in Control” shall not be deemed to have occurred if immediately after the occurrence of any of the events
described in clauses (i) –(iv) above, a Designated Holder or Designated Holders are the Beneficial Owners, directly or indirectly,
of more than 50% of the combined voting power of the Company or any successor.

 

(g)               
“Class A Common Stock” means the Class A common stock of the Company, par value $0.01 per share (and
any stock or other securities into which such common shares may be converted or into which it may be exchanged).

 

(h)              
“Code” means the U.S. Internal Revenue Code of 1986, as amended, and any successor thereto. References
to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and
any amendments or successors thereto.

 

(i)                
“Committee” means the Compensation Committee of the Board or subcommittee thereof if required with respect
to actions taken to obtain the exception for performance-based compensation under Section 162(m) of the Code or to comply with
Rule 16b-3 promulgated under the Exchange Act in respect of Awards or, if no such Compensation Committee or subcommittee thereof
exists, the Board.

 

(j)                
“Common Stock” means collectively or individually the Class A Common Stock.

 

(k)              
 “Designated Holder” means (i) MacAndrews and Forbes; (ii)  any Affiliate or subsidiary of MacAndrews
and Forbes; (iii) Ronald O. Perelman; or (iv) the estate of, Immediate Family of or any other trust or other legal entity the primary
beneficiary of which is the Immediate Family of Ronald O. Perelman.   

 

(l)                
“Disability” means cause for termination of the Participant’s employment or service due to a determination
that the Participant is disabled in accordance with a long-term disability insurance program maintained by the Company or a determination
by the U.S. Social Security Administration that the Participant is totally disabled.

 

(m)            
“Eligible Person” means any (i) individual employed by the Company or an Affiliate; provided,
however, that no such employee covered by a collective bargaining agreement shall be an Eligible Person; (ii) director or
officer of the Company or an Affiliate; (iii) consultant or advisor to the Company or an Affiliate who may be offered securities
registrable on Form S-8 under the Securities Act; or (iv) prospective employee, director, officer, consultant or advisor who has
accepted an offer of employment or consultancy from the Company or its Affiliates (and would satisfy the provisions of clauses
(i) through (iii) above once he begins employment with or providing services to the Company or its Affiliates).

 

(n)              
 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and any successor thereto.
References to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or
other interpretative guidance under such section or rule, and any amendments or successors thereto.

 

(o)              
 “Fair Market Value” means, on a given date, (i) if the Common Stock is listed on a national securities
exchange, the closing sales price of the Common Stock reported on such exchange on such date, or, if there is no such sale on that
date, then on the last preceding date on which such a sale was reported; or (ii) if the Common Stock is not listed on any national
securities exchange, the amount determined by the Committee in good faith to be the fair market value of the Common Stock.

 

    	3

    	 

    

(p)              
“Incentive Stock Option” means an Option which is designated by the Committee as an incentive stock option
as described in Section 422 of the Code and otherwise meets the requirements set forth in the Plan.

 

(q)              
“Immediate Family” means, with respect to any Person, the spouse, ex-spouse, children, step-children
and their respective lineal descendants.

 

(r)                
“NASDAQ” means The Nasdaq Global Market.

 

(s)               
“Nonqualified Stock Option” means an Option which is not designated by the Committee as an Incentive
Stock Option.

 

(t)                
“Option” means an Award granted under Section 7 of the Plan.

 

(u)              
“Performance Compensation Award” means an Award designated by the Committee as a Performance Compensation
Award pursuant to Section 11 of the Plan.

 

(v)              
“Performance Criteria” shall mean the criterion or criteria that the Committee shall select for purposes
of establishing the Performance Goal(s) for a Performance Period with respect to any Performance Compensation Award under the Plan.

 

(w)             
“Performance Formula” shall mean, for a Performance Period, the one or more objective formulae applied
against the relevant Performance Goal to determine, with regard to the Performance Compensation Award of a particular Participant,
whether all, some portion but less than all, or none of the Performance Compensation Award has been earned for the Performance
Period.

 

(x)              
“Performance Goals” shall mean, for a Performance Period, the one or more goals established by the Committee
for the Performance Period based upon the Performance Criteria.

 

(y)              
“Performance Period” shall mean the one or more periods of time as the Committee may select, over which
the attainment of one or more Performance Goals will be measured for the purpose of determining the Participant’s right to,
and the payment of, a Performance Compensation Award.

 

(z)               
“Person” has the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections
13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or
other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter
temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly,
by the shareholders of the Company in substantially the same proportions as their ownership of Common Stock of the Company.

 

(aa)           
“Restricted Stock” means an Award of Common Stock, subject to certain specified restrictions, granted
under Section 9 of the Plan.

 

(bb)          
 “Restricted Stock Unit” means an Award of an unfunded and unsecured promise to deliver shares of Common
Stock, cash, other securities or other property, subject to certain specified restrictions, granted under Section 9 of the Plan.

 

(cc)           
“Securities Act” means the U.S. Securities Act of 1933, as amended, and any successor thereto. Reference
in the Plan to any section of (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations
or other interpretative guidance under such section or rule, and any amendments or successor provisions to such section, rules,
regulations or guidance.

 

    	4

    	 

    

(dd)          
“Stock Appreciation Right” or “SAR” means an Award granted under Section 8 of the
Plan.

 

4.     Administration.

 

(a)               
The Committee shall administer the Plan, and shall have the sole and plenary authority to: (i) designate Participants; (ii)
determine the type, size, and terms and conditions of Awards to be granted; (iii) determine the method by which an Award may be
settled, exercised, canceled, forfeited, or suspended; (iv) determine the circumstances under which the delivery of cash, property
or other amounts payable with respect to an Award may be deferred either automatically or at the Participant’s or Committee’s
election; (v) interpret and administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the
Plan and any Award granted under, the Plan; (vi) establish, amend, suspend, or waive any rules and regulations and appoint such
agents as the Committee shall deem appropriate for the proper administration of the Plan; (vii) accelerate the vesting, delivery
or exercisability of, payment for or lapse of restrictions on, or waive any condition in respect of, Awards; and (viii) make any
other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan
or to comply with any applicable law, including Section 162(m) of the Code. To the extent required to comply with the provisions
of Rule 16b-3 promulgated under the Exchange Act (if applicable and if the Board is not acting as the Committee under the Plan)
or necessary to obtain the exception for performance-based compensation under Section 162(m) of the Code, or any exception or exemption
under the rules of NASDAQ or any other securities exchange or inter-dealer quotation service on which the Common Stock is listed
or quoted, as applicable, it is intended that each member of the Committee shall, at the time he takes any action with respect
to an Award under the Plan, be (i) a “non-employee director” within the meaning of Rule 16b-3 promulgated under the
Exchange Act and (ii) an “outside director” within the meaning of Section 162(m) of the Code and/or (iii) an “independent
director” under the rules of NASDAQ or any other securities exchange or inter-dealer quotation service on which the Common
Stock is listed or quoted (“Eligible Director”). However, the fact that a Committee member shall fail
to qualify as an Eligible Director shall not invalidate any Award granted or action taken by the Committee that is otherwise validly
granted or taken under the Plan.

 

(b)              
The Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may
delegate all or any part of its responsibilities and powers to any person(s) selected by it, except for grants of Awards to persons
(i) who are non-employee members of the Board or otherwise are subject to Section 16 of the Exchange Act or (ii) who are or may
reasonably be expected to be “covered employees” for purposes of Section 162(m) of the Code. Any such allocation or
delegation may be revoked by the Committee at any time.

 

(c)               
As further set forth in Section 15(f) of the Plan, the Committee shall have the authority to amend the Plan and Awards to
the extent necessary to permit participation in the Plan by Eligible Persons who are located outside of the United States on terms
and conditions comparable to those afforded to Eligible Persons located within the United States; provided, however,
that no such action shall be taken without shareholder approval if such approval is required by applicable law or regulation.

 

    	5

    	 

    

(d)              
Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions
regarding the Plan or any Award or any documents evidencing Awards granted pursuant to the Plan shall be within the sole discretion
of the Committee, may be made at any time and shall be final, conclusive and binding upon all persons or entities, including, without
limitation, the Company, any Affiliate, any Participant, any holder or beneficiary of any Award, and any shareholder of the Company.

 

(e)               
No member of the Board, the Committee or any employee or agent of the Company (each such person, an “Indemnifiable
Person”) shall be liable for any action taken or omitted to be taken or any determination made with respect to the
Plan or any Award hereunder (unless constituting fraud or a willful criminal act or omission). Each Indemnifiable Person shall
be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense (including attorneys’
fees) that may be imposed upon or incurred by such Indemnifiable Person in connection with or resulting from any action, suit or
proceeding to which such Indemnifiable Person may be involved as a party, witness or otherwise by reason of any action taken or
omitted to be taken or determination made under the Plan or any Award agreement and against and from any and all amounts paid by
such Indemnifiable Person with the Company’s approval (not to be unreasonably withheld), in settlement thereof, or paid by
such Indemnifiable Person in satisfaction of any judgment in any such action, suit or proceeding against such Indemnifiable Person,
and the Company shall advance to such Indemnifiable Person any such expenses promptly upon written request (which request shall
include an undertaking by the Indemnifiable Person to repay the amount of such advance if it shall ultimately be determined as
provided below that the Indemnifiable Person is not entitled to be indemnified); provided, that the Company shall have the
right, at its own expense, to assume and defend any such action, suit or proceeding and once the Company gives notice of its intent
to assume the defense, the Company shall have sole control over such defense with counsel of recognized standing of the Company’s
choice. The foregoing right of indemnification shall not be available to an Indemnifiable Person to the extent that a final judgment
or other final adjudication (in either case not subject to further appeal) binding upon such Indemnifiable Person determines that
the acts or omissions or determinations of such Indemnifiable Person giving rise to the indemnification claim resulted from such
Indemnifiable Person’s fraud or willful criminal act or omission or that such right of indemnification is otherwise prohibited
by law or by the Company’s Certificate of Incorporation or By-laws. The foregoing right of indemnification shall not be exclusive
of or otherwise supersede any other rights of indemnification to which such Indemnifiable Persons may be entitled under the Company’s
Certificate of Incorporation or By-laws, as a matter of law, individual indemnification agreement or contract or otherwise, or
any other power that the Company may have to indemnify such Indemnifiable Persons or hold them harmless.

 

(f)               
The Board may at any time and from time to time, grant Awards and administer the Plan with respect to such Awards. In any
such case, the Board shall have all the authority granted to the Committee under the Plan.

 

5.     
Grant of Awards; Shares Subject to the Plan; Limitations. 

 

(a)               
The Committee may grant Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Other Stock-Based
Awards and/or Performance Compensation Awards to one or more Eligible Persons.

 

(b)              
Subject to Section 12 of the Plan and subsection (e) below, the following limitations apply to the grant of Awards: (i)
no more than 3,250,000 shares of Class A Common Stock may be delivered in the aggregate pursuant to Awards granted under the Plan;
(ii) no more than 1,000,000 shares of Class A Common Stock may be subject to grants of Options or SARs under the Plan to any single
Participant during any single fiscal year; (iii) no more than 2,500,000 shares of Class A Common Stock may be delivered pursuant
to the exercise of Incentive Stock Options granted under the Plan; (iv) no more than 500,000 shares of Class A Common Stock may
be delivered in respect of Performance Compensation Awards denominated in shares of Common Stock granted pursuant to Section 11
of the Plan to any Participant for a single Performance Period (or with respect to each single fiscal year in the event a Performance
Period extends beyond a single fiscal year), or in the event such Performance Compensation Award is paid in cash, other securities,
other Awards or other property, no more than the Fair Market Value of 500,000 shares of Class A Common Stock on the last day of
the Performance Period to which such Award relates; (v) the maximum amount that can be paid to any individual Participant for a
single fiscal year during a Performance Period (or with respect to each single fiscal year in the event a Performance Period extends
beyond a single fiscal year) pursuant to a Performance Compensation Award denominated in cash described in Section 11(a) of the
Plan shall be $5,000,000; and (vi) the maximum amount (based on the fair value of shares of Common Stock on the date of grant as
determined in accordance with applicable financial accounting rules) of Awards that may be granted in any single fiscal year to
any non-employee director shall be $1,000,000, exclusive of voluntary deferrals by such director of his or her director fees and
committee retainers.

 

    	6

    	 

    

(c)               
Shares of Common Stock shall be deemed to have been used in settlement of Awards whether or not they are actually delivered
or the Fair Market Value equivalent of such shares is paid in cash; provided, however, that if shares of Common Stock
issued upon exercise, vesting or settlement of an Award, or shares of Common Stock owned by the Participant are surrendered or
tendered to the Company in payment of the Exercise Price or any taxes required to be withheld in respect of an Award, in each case,
in accordance with the terms and conditions of the Plan and any applicable Award agreement, such surrendered or tendered shares
shall again become available for other Awards; provided, further, that in no event shall such shares increase the
number of shares of Common Stock that may be delivered pursuant to Incentive Stock Options. If and to the extent all or any portion
of an Award expires, terminates or is canceled or forfeited for any reason without the Participant having received any benefit
therefrom, the shares covered by such Award or portion thereof shall again become available for other Awards. For purposes of the
foregoing sentence, the Participant shall not be deemed to have received any “benefit” (i) in the case of forfeited
Restricted Stock by reason of having enjoyed voting rights and dividend rights prior to the date of forfeiture or (ii) in the case
of an Award canceled by reason of a new Award being granted in substitution therefor.

 

(d)              
Shares of Common Stock delivered by the Company in settlement of Awards may be authorized and unissued shares, shares held
in the treasury of the Company, shares purchased on the open market or by private purchase, or a combination of the foregoing.

 

(e)               
The Committee may grant Awards in assumption of, or in substitution for, outstanding awards previously granted by the Company
or any Affiliate or an entity directly or indirectly acquired by the Company or with which the Company combines (“Substitute
Awards”), and such Substitute Awards shall not be counted against the aggregate number of shares of Common Stock
available for Awards; provided, that Substitute Awards issued or intended as “incentive stock options” within
the meaning of Section 422 of the Code shall be counted against the aggregate number of Incentive Stock Options available under
the Plan.

 

6.     
Eligibility. Participation shall be limited to Eligible Persons who have been selected by the Committee and who have
entered into an Award agreement with respect to an Award granted to them under the Plan (each such Eligible Person, a “Participant”).

 

7.     
Options.

 

(a)               
Generally. Each Option shall be subject to the conditions set forth in the Plan and in the Award agreement. All Options
granted under the Plan shall be Nonqualified Stock Options unless the Award agreement expressly states otherwise. Incentive Stock
Options shall be granted only subject to and in compliance with Section 422 of the Code, and only to Eligible Persons who are employees
of the Company and its Affiliates and who are eligible to receive an Incentive Stock Option under the Code. If for any reason an
Option intended to be an Incentive Stock Option (or any portion thereof) shall not qualify as an Incentive Stock Option, then,
to the extent of such nonqualification, such Option or portion thereof shall be regarded as a Nonqualified Stock Option appropriately
granted under the Plan.

 

    	7

    	 

    

(b)              
Exercise Price. The exercise price (“Exercise Price”) per share of Common Stock for each
Option shall not be less than 100% of the Fair Market Value of such share, determined as of the date of grant. Any modification
to the Exercise Price of an outstanding Option shall be subject to the prohibition on repricing set forth in Section 14(b).

 

(c)               
Vesting, Exercise and Expiration. The Committee shall determine the manner and timing of vesting, exercise and expiration
of Options. The period between date of grant and the scheduled expiration date of the Option (“Option Period”)
shall not exceed ten years, unless the Option Period (other than in the case of an Incentive Stock Option) would expire at a time
when trading in the shares of Common Stock is prohibited by the Company’s securities trading policy or a Company-imposed
“blackout period”, in which case the Option Period shall be automatically extended until the 30th day following the
expiration of such prohibition (so long as such extension shall not violate Section 409A of the Code). The Committee may accelerate
the vesting and/or exercisability of any Option, which acceleration shall not affect any other terms and conditions of such Option.

 

(d)              
Method of Exercise and Form of Payment. No shares of Common Stock shall be delivered pursuant to any exercise of
an Option until the Participant has made payment in full to the Company of the Exercise Price and an amount equal to any U.S. federal,
state and local income and employment taxes and non-U.S. income and employment taxes, social contributions and any other tax-related
items required to be withheld. Options may be exercised by delivery of written or electronic notice of exercise to the Company
or its designee (including a third party administrator) in accordance with the terms of the Option accompanied by payment of the
Exercise Price. The Exercise Price and all applicable required withholding taxes shall be payable (i) in cash, check, cash equivalent
and/or shares of Common Stock (or any combination of the foregoing) valued at the Fair Market Value at the time the Option is exercised
(including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of shares
of Common Stock in lieu of actual delivery of such shares to the Company); provided, that such shares of Common Stock are
not subject to any pledge or other security interest; or (ii) by such other method as the Committee may permit, including without
limitation: (A) in other property having a Fair Market Value on the date of exercise equal to the Exercise Price and all applicable
required withholding taxes; (B) if there is a public market for the shares of Common Stock at such time, by means of a broker-assisted
“cashless exercise” pursuant to which the Company is delivered a copy of irrevocable instructions to a stockbroker
to sell the shares of Common Stock otherwise deliverable upon the exercise of the Option and to deliver promptly to the Company
an amount equal to the Exercise Price and all applicable required withholding taxes; or (C) by means of a “net exercise”
procedure effected by withholding the minimum number of shares of Common Stock otherwise deliverable in respect of an Option that
are needed to pay for the Exercise Price and all applicable required withholding taxes. Notwithstanding the foregoing, unless otherwise
determined by the Committee, if on the last day of the Option Period, the Fair Market Value exceeds the Exercise Price, the Participant
has not exercised the Option, and the Option has not expired, such Option shall be deemed to have been exercised by the Participant
on such last day by means of a “net exercise” procedure described above. Any fractional shares of Common Stock shall
be settled in cash.

 

(e)               
Notification upon Disqualifying Disposition of an Incentive Stock Option. Each Participant awarded an Incentive Stock
Option under the Plan shall notify the Company in writing immediately after the date he makes a disqualifying disposition of any
Common Stock acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition (including,
without limitation, any sale) of such Common Stock before the later of (i) two years after the date of grant of the Incentive Stock
Option or (ii) one year after the date of exercise of the Incentive Stock Option. The Company may, if determined by the Committee
and in accordance with procedures established by the Committee, retain possession, as agent for the applicable Participant, of
any Common Stock acquired pursuant to the exercise of an Incentive Stock Option until the end of the period described in the preceding
sentence, subject to complying with any instruction from such Participant as to the sale of such Common Stock.

 

    	8

    	 

    

(f)               
Compliance with Laws, etc. Notwithstanding the foregoing, in no event shall the Participant be permitted to exercise
an Option in a manner which the Committee determines would violate the Sarbanes-Oxley Act of 2002, or any other applicable law
or the applicable rules and regulations of the Securities and Exchange Commission or the applicable rules and regulations of any
securities exchange or inter-dealer quotation service on which the Common Stock of the Company is listed or quoted.

 

(g)               
Incentive Stock Option Grants to 10% Shareholders. Notwithstanding anything to the contrary in this Section 7, if
an Incentive Stock Option is granted to a Participant who owns stock representing more than ten percent of the voting power of
all classes of stock of the Company or of a subsidiary or a parent of the Company, the Option Period shall not exceed five years
from the date of grant of such Option and the Option Price shall be at least 110% of the Fair Market Value (on the date of grant)
of the shares subject to the Option.

 

(h)              
$100,000 Per Year Limitation for Incentive Stock Options. To the extent the aggregate Fair Market Value (determined
as of the date of grant) of shares of Common Stock for which Incentive Stock Options are exercisable for the first time by any
Participant during any calendar year (under all plans of the Company) exceeds $100,000, such excess Incentive Stock Options shall
be treated as Nonqualified Stock Options.

 

8.     
Stock Appreciation Rights (SARs). 

 

(a)               
Generally. Each SAR shall be subject to the conditions set forth in the Plan and the Award agreement. Any Option
granted under the Plan may include a tandem SAR. The Committee also may award SARs independent of any Option.

 

(b)              
Strike Price. The strike price (“Strike Price”) per share of Common Stock for each SAR
shall not be less than 100% of the Fair Market Value of such share (determined as of the date of grant); provided, however,
that a SAR granted in tandem with (or in substitution for) an Option previously granted shall have a Strike Price equal to the
Exercise Price of the corresponding Option. Any modification to the Strike Price of an outstanding SAR shall be subject to the
prohibition on repricing set forth in Section 14(b).

 

(c)               
Vesting and Expiration. A SAR granted in tandem with an Option shall become exercisable and shall expire according
to the same vesting schedule and expiration provisions as the corresponding Option. A SAR granted independently of an Option shall
vest and become exercisable and shall expire in such manner and on such date or dates determined by the Committee and shall expire
after such period, not to exceed ten years, as may be determined by the Committee (the “SAR Period”);
provided, however, that notwithstanding any vesting or exercisability dates set by the Committee, the Committee may
accelerate the vesting and/or exercisability of any SAR, which acceleration shall not affect the terms and conditions of such SAR
other than with respect to vesting and/or exercisability. If the SAR Period would expire at a time when trading in the shares of
Common Stock is prohibited by the Company’s securities trading policy or a Company-imposed “blackout period”,
the SAR Period shall be automatically extended until the 30th day following the expiration of such prohibition (so long as such
extension shall not violate Section 409A of the Code).

 

    	9

    	 

    

(d)              
Method of Exercise. SARs may be exercised by delivery of written or electronic notice of exercise to the Company
or its designee (including a third party administrator) in accordance with the terms of the Award, specifying the number of SARs
to be exercised and the date on which such SARs were awarded. Notwithstanding the foregoing, if on the last day of the Option Period
(or in the case of a SAR independent of an Option, the SAR Period), the Fair Market Value exceeds the Strike Price, the Participant
has not exercised the SAR or the corresponding Option (if applicable), and neither the SAR nor the corresponding Option (if applicable)
has expired, such SAR shall be deemed to have been exercised by the Participant on such last day and the Company shall make the
appropriate payment therefor.

 

(e)               
Payment. Upon the exercise of a SAR, the Company shall pay to the holder thereof an amount equal to the number of
shares subject to the SAR that are being exercised multiplied by the excess, if any, of the Fair Market Value of one share of Common
Stock on the exercise date over the Strike Price, less an amount equal to any U.S. federal, state and local income and employment
taxes and non-U.S. income and employment taxes, social contributions and any other tax-related items required to be withheld. The
Company shall pay such amount in cash, in shares of Common Stock valued at Fair Market Value, or any combination thereof, as determined
by the Committee. Any fractional shares of Common Stock shall be settled in cash.

 

9.     
Restricted Stock and Restricted Stock Units. 

 

(a)               
Generally. Each Restricted Stock and Restricted Stock Unit grant shall be subject to the conditions set forth in
the Plan and the Award agreement. The Committee shall establish restrictions applicable to such Restricted Stock and Restricted
Stock Units, including the period over which the restrictions shall apply (the “Restricted Period”),
and the time or times at which Restricted Stock or Restricted Stock Units shall become vested. The Committee may accelerate the
vesting and/or the lapse of any or all of the restrictions on the Restricted Stock and Restricted Stock Units, which acceleration
shall not affect any other terms and conditions of such Awards. No shares shall be issued at the time an Award of Restricted Stock
Units is made, and the Company will not be required to set aside a fund for the payment of any such Award.

 

(b)              
Stock Certificates; Escrow or Similar Arrangement. Upon the grant of Restricted Stock, the Committee shall cause
share(s) of Common Stock to be registered in the name of the Participant and held in book-entry form subject to the Company’s
directions. The Committee also may cause a stock certificate registered in the name of the Participant to be issued. In such event,
the Committee may provide that such certificates shall be held by the Company or in escrow rather than delivered to the Participant
pending vesting and release of restrictions, in which case the Committee may require the Participant to execute and deliver to
the Company (i) an escrow agreement satisfactory to the Committee, if applicable, and (ii) the appropriate stock power (endorsed
in blank) with respect to the Restricted Stock. If the Participant shall fail to execute and deliver the escrow agreement and blank
stock power within the amount of time specified by the Committee, the Award shall be null and void. Subject to the restrictions
set forth in this Section 9 and the Award agreement, the Participant shall have the rights and privileges of a shareholder as to
such Restricted Stock, including without limitation the right to vote such Restricted Stock.

 

(c)               
Restrictions; Forfeiture. Restricted Stock and Restricted Stock Units awarded to the Participant shall be subject
to forfeiture until the expiration of the Restricted Period and the attainment of any other vesting criteria established by the
Committee, and shall be subject to the restrictions on transferability set forth in the Award agreement. In the event of any forfeiture,
all rights of the Participant to such Restricted Stock (or as a shareholder with respect thereto), and/or to such Restricted Stock
Units, as applicable, including to any dividends and/or dividend equivalents that may have been accumulated and withheld during
the Restricted Period in respect thereof, shall terminate without further action or obligation on the part of the Company. The
Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock and Restricted Stock Units
whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances arising after the date
of grant of the Restricted Stock Award or Restricted Stock Unit Award, such action is appropriate.

 

    	10

    	 

    

(d)              
Delivery of Restricted Stock and Settlement of Restricted Stock Units. 

 

(i)    
Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock and the attainment of any other
vesting criteria, the restrictions set forth in the applicable Award agreement shall be of no further force or effect, except as
set forth in the Award agreement. If an escrow arrangement is used, upon such expiration the Company shall deliver to the Participant
or his beneficiary (via book entry notation or, if applicable, in stock certificate form) the shares of Restricted Stock with respect
to which the Restricted Period has expired (rounded down to the nearest full share). Dividends, if any, that may have been withheld
by the Committee and attributable to the Restricted Stock shall be distributed to the Participant in cash or in shares of Common
Stock having a Fair Market Value (on the date of distribution) equal to the amount of such dividends, upon the release of restrictions
on such share.

 

(ii)              
Unless otherwise provided by the Committee in an Award agreement, upon the expiration of the Restricted Period and the attainment
of any other vesting criteria established by the Committee, with respect to any outstanding Restricted Stock Units, the Company
shall deliver to the Participant, or his beneficiary (via book entry notation or, if applicable, in stock certificate form), one
share of Common Stock (or other securities or other property, as applicable) for each such outstanding Restricted Stock Unit which
has not then been forfeited and with respect to which the Restricted Period has expired and any other such vesting criteria are
attained (“Released Unit”); provided, however, that the Committee may elect to (A) pay
cash or part cash and part Common Stock in lieu of delivering only shares of Common Stock in respect of such Released Units or
(B) defer the delivery of Common Stock (or cash or part Common Stock and part cash, as the case may be) beyond the expiration of
the Restricted Period if such extension would not cause adverse tax consequences under Section 409A of the Code. If a cash payment
is made in lieu of delivering shares of Common Stock, the amount of such payment shall be equal to the Fair Market Value of the
Common Stock as of the date on which the Restricted Period lapsed with respect to such Restricted Stock Units. To the extent provided
in an Award agreement, the holder of outstanding Restricted Stock Units shall be entitled to be credited with dividend equivalent
payments (upon the payment by the Company of dividends on shares of Common Stock) either in cash or, if determined by the Committee,
in shares of Common Stock having a Fair Market Value equal to the amount of such dividends (and interest may, if determined by
the Committee, be credited on the amount of cash dividend equivalents at a rate and subject to such terms as determined by the
Committee), which accumulated dividend equivalents (and interest thereon, if applicable) shall be payable at the same time as the
underlying Restricted Stock Units are settled following the release of restrictions on such Restricted Stock Units, and, if such
Restricted Stock Units are forfeited, the holder thereof shall have no right to such dividend equivalent payments.

 

(e)               
Legends on Restricted Stock. Each certificate representing Restricted Stock awarded under the Plan, if any, shall
bear a legend substantially in the form of the following in addition to any other information the Company deems appropriate until
the lapse of all restrictions with respect to such Common Stock:

 

TRANSFER OF THIS
CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS RESTRICTED PURSUANT TO THE TERMS OF THE VTV THERAPEUTICS INC. 2015 OMNIBUS
EQUITY INCENTIVE PLAN AND A RESTRICTED STOCK AWARD AGREEMENT, DATED AS OF __________, BETWEEN VTV THERAPEUTICS INC. AND
_________. A COPY OF SUCH PLAN AND AWARD AGREEMENT IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF VTV THERAPEUTICS,
INC.

 

    	11

    	 

    

10.     
Other Stock-Based Awards. The Committee may issue unrestricted Common Stock, rights to receive future grants of Awards,
or other Awards denominated in Common Stock (including performance shares or performance units), or Awards that provide for cash
payments based in whole or in part on the value or future value of shares of Common Stock under the Plan to Eligible Persons, alone
or in tandem with other Awards, in such amounts as the Committee shall from time to time determine (“Other Stock-Based
Awards”). Each Other Stock-Based Award shall be evidenced by an Award agreement which may include conditions including
without limitation the payment by the Participant of the Fair Market Value of such shares of Common Stock on the date of grant.

 

11.     
Performance Compensation Awards. 

 

(a)               
Generally. The Committee shall have the authority, at or before the time of grant of any Award described in Sections
7 through 10 of the Plan, to designate such Award as a Performance Compensation Award intended to qualify as “performance-based
compensation” under Section 162(m) of the Code. In addition, the Committee shall have the authority to make an award of a
cash bonus to any Participant and designate such Award as a Performance Compensation Award intended to qualify as “performance
based compensation” under Section 162(m). Notwithstanding the foregoing, (i) any Award to a Participant who is a “covered
employee” within the meaning of Section 162(m) for a fiscal year that satisfies the requirements of this Section 11 may be
treated as a Performance Compensation Award in the absence of any such Committee designation and (ii) if the Company determines
that a Participant who has been granted an Award designated as a Performance Compensation Award is not (or is no longer) a “covered
employee” within the meaning of Section 162(m), the terms and conditions of such Award may be modified without regard to
any restrictions or limitations set forth in this Section 11 (but subject otherwise to the provisions of Section 14 of the Plan).

 

(b)              
Discretion of Committee with Respect to Performance Compensation Awards. The Committee may select the length of a
Performance Period, the type(s) of Performance Compensation Awards to be issued, the Performance Criteria used to establish the
Performance Goal(s), the kind(s) and/or level(s) of the Performance Goals(s) and the Performance Formula. Within the first 90 days
of a Performance Period (or the maximum period allowed under Section 162(m) of the Code), the Committee shall, with regard to the
Performance Compensation Awards to be issued for such Performance Period, exercise its discretion with respect to each of the matters
enumerated in the immediately preceding sentence and record the same in writing (which may be in the form of minutes of a meeting
of the Committee).

 

(c)               
Performance Criteria. The Performance Criteria that will be used to establish the Performance Goal(s) may be based
on the attainment of specific levels of performance of the Company (and/or one or more Affiliates, divisions or operational and/or
business units, product lines, brands, business segments, administrative departments, units, or any combination of the foregoing)
and shall be limited to the following: (i) net earnings or net income (before or after taxes); (ii) basic or diluted earnings per
share (before or after taxes); (iii) net revenue or net revenue growth; (iv) gross revenue or gross revenue growth, gross profit
or gross profit growth; (v) net operating profit (before or after taxes); (vi) return measures (including, but not limited to,
return on investment, assets, capital, gross revenue or gross revenue growth, invested capital, equity or sales); (vii) cash flow
measures (including, but not limited to, operating cash flow, free cash flow and cash flow return on capital), which may but are
not required to be measured on a per-share basis; (viii) earnings before or after taxes, interest, depreciation, and amortization
(including EBIT and EBITDA); (ix) gross or net operating margins; (x) productivity ratios; (xi) share price (including, but not
limited to, growth measures and total shareholder return); (xii) expense targets or cost reduction goals, general and administrative
expense savings; (xiii) operating efficiency; (xiv) objective measures of customer satisfaction; (xv) working capital targets;
(xvi) measures of economic value added or other ‘‘value creation’’ metrics; (xvii) enterprise value; (xviii)
stockholder return; (xix) customer retention; (xx) competitive market metrics; (xxi) employee retention; (xxii) objective measures
of personal targets, goals or completion of projects (including but not limited to succession and hiring projects, completion of
specific acquisitions, reorganizations or other corporate transactions or capital-raising transactions, expansions of specific
business operations and meeting divisional or project budgets); (xxiii) system-wide revenues; (xxiv) cost of capital, debt leverage,
year-end cash position or book value; (xxv) strategic objectives, development of new product lines and related revenue, sales and
margin targets, or international operations; (xxvi) meeting milestones with respect to drug candidates or (xxvii) any combination
of the foregoing. Any one or more of the Performance Criteria may be stated as a percentage of another Performance Criteria, or
a percentage of a prior period’s Performance Criteria, or used on an absolute, relative or adjusted basis to measure the
performance of the Company and/or one or more Affiliates as a whole or any divisions or operational and/or business units, product
lines, brands, business segments, administrative departments of the Company and/or one or more Affiliates or any combination thereof,
as the Committee may deem appropriate, or any of the above Performance Criteria may be compared to the performance of a group of
comparator companies, or a published or special index that the Committee deems appropriate, or as compared to various stock market
indices. The Committee also has the authority to provide for accelerated vesting, delivery and exercisability of any Award based
on the achievement of Performance Goals pursuant to the Performance Criteria specified in this paragraph. To the extent required
under Section 162(m) of the Code, the Committee shall, within the first 90 days of a Performance Period (or within the maximum
period allowed under Section 162(m) of the Code), define in an objective fashion the manner of calculating the Performance Criteria
it selects to use for such Performance Period.

 

    	12

    	 

    

(d)              
Modification of Performance Goal(s). The Committee may alter Performance Criteria without obtaining shareholder approval
if applicable tax and/or securities laws so permit. The Committee may modify the calculation of a Performance Goal during the first
90 days of a Performance Period (or within the maximum period allowed under Section 162(m) of the Code), or at any time thereafter
if the change would not cause any Performance Compensation Award to fail to qualify as “performance-based compensation”
under Section 162(m), to reflect any of the following events: (i) asset write-downs; (ii) litigation or claim judgments or settlements;
(iii) the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (iv)
any reorganization and restructuring programs; (v) extraordinary nonrecurring items as described in Accounting Standards Codification
Topic 225-20 (or any successor pronouncement thereto) and/or in management’s discussion and analysis of financial condition
and results of operations appearing in the Company’s annual report to shareholders for the applicable year; (vi) acquisitions
or divestitures; (vii) any other specific unusual or nonrecurring events, or objectively determinable category thereof; (viii)
foreign exchange gains and losses; (ix) discontinued operations and nonrecurring charges; and (x) a change in the Company’s
fiscal year.

 

(e)               
Payment of Performance Compensation Awards.

 

(i)              
Condition to Receipt of Payment. Unless otherwise provided in the applicable Award agreement or any employment, consulting,
change-in-control, severance or other agreement between the Participant and the Company or an Affiliate, the Participant must be
employed by or rendering services for the Company or an Affiliate on the last day of a Performance Period to be eligible for payment
in respect of a Performance Compensation Award for such Performance Period.

 

    	13

    	 

    

(ii)              
Limitation. Unless otherwise provided in the applicable Award agreement, or any employment, consulting, change-in-control,
severance or other agreement between the Participant and the Company or an Affiliate, the Participant shall be eligible to receive
payment or delivery, as applicable, in respect of a Performance Compensation Award only to the extent the Committee determines
that: (A) the Performance Goals for such period are achieved, as determined by the Committee; and (B) all or some of the portion
of such Participant’s Performance Compensation Award has been earned for the Performance Period based on the application
of the Performance Formula to such achieved Performance Goals, as determined by the Committee; provided, however,
that if so provided by the Committee in its sole discretion, in the event of (x) the termination of the Participant’s employment
or service by the Company other than for Cause (and other than due to death or Disability), in each case within 12 months following
a Change in Control, or (y) the termination of a Participant’s employment or service due to the Participant’s death
or Disability, the Participant shall receive payment in respect of a Performance Compensation Award based on (1) actual performance
through the date of termination as determined by the Committee, or (2) if the Committee determines that measurement of actual performance
cannot be reasonably assessed, the assumed achievement of target performance as determined by the Committee (but not to the extent
that application of this clause (2) would cause Section 162(m) of the Code to result in the loss of the deduction of the compensation
payable in respect of such Performance Compensation Award for any Participant reasonably expected to be a “covered employee”
within the meaning of Section 162(m) of the Code), in each case prorated based on the time elapsed from the date of grant to the
date of termination of employment or service.

 

(iii)            
Certification. Following the completion of a Performance Period, the Committee shall review and certify in writing
(which may be in the form of minutes of a meeting of the Committee) whether, and to what extent, the Performance Goals for the
Performance Period have been achieved and, if so, calculate and certify in writing (which may be in the form of minutes of a meeting
of the Committee) that amount of the Performance Compensation Awards earned for the period based upon the Performance Formula.
The Committee shall then determine the amount of each Participant’s Performance Compensation Award actually payable for the
Performance Period and, in so doing, may apply discretion to eliminate or reduce the size of a Performance Compensation Award consistent
with Section 162(m) of the Code. Unless otherwise provided in the applicable Award agreement, the Committee shall not have the
discretion to (A) provide payment or delivery in respect of Performance Compensation Awards for a Performance Period if the Performance
Goals for such Performance Period have not been attained; or (B) increase a Performance Compensation Award above the applicable
limitations set forth in Section 5 of the Plan.

 

(f)               
Timing of Award Payments. Unless otherwise provided in the applicable Award agreement, Performance Compensation Awards
granted for a Performance Period shall be paid to Participants as soon as administratively practicable following completion of
the certifications required by this Section 11. Any Performance Compensation Award that has been deferred shall not (between the
date as of which the Award is deferred and the payment date) increase (i) with respect to a Performance Compensation Award that
is payable in cash, by a measuring factor for each fiscal year greater than a reasonable rate of interest set by the Committee
or (ii) with respect to a Performance Compensation Award that is payable in shares of Common Stock, by an amount greater than the
appreciation of a share of Common Stock from the date such Award is deferred to the payment date. Unless otherwise provided in
an Award agreement, any Performance Compensation Award that is deferred and is otherwise payable in shares of Common Stock shall
be credited (during the period between the date as of which the Award is deferred and the payment date) with dividend equivalents
(in a manner consistent with the methodology set forth in the last sentence of Section 9(d)(ii)).

 

    	14

    	 

    

12.     
Changes in Capital Structure and Similar Events. In the event of (a) any dividend (other than regular cash dividends)
or other distribution (whether in the form of cash, shares of Common Stock, other securities or other property), recapitalization,
stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase
or exchange of shares of Common Stock or other securities of the Company, issuance of warrants or other rights to acquire shares
of Common Stock or other securities of the Company, or other similar corporate transaction or event (including, without limitation,
a Change in Control) that affects the shares of Common Stock, or (b) unusual or nonrecurring events (including, without limitation,
a Change in Control) affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or changes
in applicable rules, rulings, regulations or other requirements of any governmental body or securities exchange or inter-dealer
quotation service, accounting principles or law, such that in any case an adjustment is determined by the Committee to be necessary
or appropriate, then the Committee shall make any such adjustments in such manner as it may deem equitable, including without limitation
any or all of the following: (i) adjusting any or all of (A) the number of shares of Common Stock or other securities of the Company
(or number and kind of other securities or other property) which may be delivered in respect of Awards or with respect to which
Awards may be granted under the Plan (including, without limitation, adjusting any or all of the limitations under Section 5 of
the Plan) and (B) the terms of any outstanding Award, including, without limitation, (1) the number of shares of Common Stock or
other securities of the Company (or number and kind of other securities or other property) subject to outstanding Awards or to
which outstanding Awards relate, (2) the Exercise Price or Strike Price with respect to any Award or (3) any applicable performance
measures (including, without limitation, Performance Criteria, Performance Formula and Performance Goals); (ii) providing for a
substitution or assumption of Awards (or awards of an acquiring company), accelerating the delivery, vesting and/or exercisability
of, lapse of restrictions and/or other conditions on, or termination of, Awards or providing for a period of time (which shall
not be required to be more than ten (10) days) for Participants to exercise outstanding Awards prior to the occurrence of such
event (and any such Award not so exercised shall terminate upon the occurrence of such event); and (iii) cancelling any one or
more outstanding Awards (or awards of an acquiring company) and causing to be paid to the holders thereof, in cash, shares of Common
Stock, other securities or other property, or any combination thereof, the value of such Awards, if any, as determined by the Committee
(which, if applicable, may be based upon the price per share of Common Stock received or to be received by other shareholders of
the Company in such event), including without limitation, in the case of an outstanding Option or SAR, a cash payment in an amount
equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of the shares of Common Stock subject
to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option or SAR, respectively (it being understood
that, in such event, any Option or SAR having a per share Exercise Price or Strike Price equal to, or in excess of, the Fair Market
Value of a share of Common Stock subject thereto may be canceled and terminated without any payment or consideration therefor);
provided, however, that the Committee shall make an equitable or proportionate adjustment to outstanding Awards to
reflect any “equity restructuring” (within the meaning of the Financial Accounting Standards Codification Topic 718
(or any successor pronouncement thereto)). Except as otherwise determined by the Committee, any adjustment in Incentive Stock Options
under this Section 12 (other than any cancellation of Incentive Stock Options) shall be made only to the extent not constituting
a “modification” within the meaning of Section 424(h)(3) of the Code, and any adjustments under this Section 12 shall
be made in a manner which does not adversely affect the exemption provided pursuant to Rule 16b-3 promulgated under the Exchange
Act. The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive
and binding for all purposes.

 

    	15

    	 

    

13.     
Effect of Change in Control. Except to the extent otherwise provided in an Award agreement, or any applicable employment,
consulting, change-in-control, severance or other agreement between the Participant and the Company or an Affiliate, in the event
of a Change in Control, notwithstanding any provision of the Plan to the contrary:

 

(a)               
In the event the Participant’s employment with the Company or an Affiliate is terminated by the Company or Affiliate
without Cause (and other than due to death or Disability) on or within 12 months following a Change in Control, the Committee may
provide that all Options and SARs held by such Participant shall become immediately exercisable with respect to 100% of the shares
subject to such Options and SARs, and that the Restricted Period (and any other conditions) shall expire immediately with respect
to 100% of the shares of Restricted Stock and Restricted Stock Units and any other Awards held by such Participant (including a
waiver of any applicable Performance Goals); provided, that in the event the vesting or exercisability of any Award would
otherwise be subject to the achievement of performance conditions, the portion of such Award that shall become fully vested and
immediately exercisable shall be based on the assumed achievement of target performance as determined by the Committee and prorated
for the number of days elapsed from the grant date of such Award through the date of termination.

 

(b)              
In addition, the Committee may upon at least ten (10) days’ advance notice to the affected persons, cancel any outstanding
Award and pay to the holders thereof, in cash, securities or other property (including of the acquiring or successor company),
or any combination thereof, the value of such Awards based upon the price per share of Common Stock received or to be received
by other shareholders of the Company in the event. Notwithstanding the above, the Committee shall exercise such discretion over
the timing of settlement of any Award subject to Code Section 409A at the time such Award is granted.

 

(c)               
To the extent practicable, the provisions of this Section 13 shall occur in a manner and at a time which allows affected
Participants the ability to participate in the Change in Control transaction with respect to the Common Stock subject to their
Awards.

 

14.     
Amendments and Termination. 

 

(a)               
Amendment and Termination of the Plan. The Board may amend, alter, suspend, discontinue, or terminate the Plan or
any portion thereof at any time; provided, that no such amendment, alteration, suspension, discontinuation or termination
shall be made without shareholder approval if such approval is necessary to comply with any tax or regulatory requirement applicable
to the Plan (including, without limitation, as necessary to comply with any rules or requirements of any securities exchange or
inter-dealer quotation service on which the shares of Common Stock may be listed or quoted, for changes in GAAP to new accounting
standards, or to prevent the Company from being denied a tax deduction under Section 162(m) of the Code); provided, further,
that any such amendment, alteration, suspension, discontinuance or termination that would materially and adversely affect the rights
of any Participant or any holder or beneficiary of any Award theretofore granted shall not, to that extent, be effective without
the consent of the affected Participant, holder or beneficiary, unless the Committee determines that such amendment, alteration,
suspension, discontinuance or termination either is required or advisable in order for the Company, the Plan or the Award to satisfy
any applicable law or regulation. Notwithstanding the foregoing, no amendment shall be made to the last proviso of Section 14(b)
without shareholder approval.

 

    	16

    	 

    

(b)              
Amendment of Award Agreements. The Committee may, to the extent not inconsistent with the terms of any applicable
Award agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate,
any Award theretofore granted or the associated Award agreement, prospectively or retroactively (including after the Participant’s
termination of employment or service with the Company); provided, that any such waiver, amendment, alteration, suspension,
discontinuance, cancellation or termination that would materially and adversely affect the rights of any Participant with respect
to any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant unless the
Committee determines that such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination either is
required or advisable in order for the Company, the Plan or the Award to satisfy any applicable law or regulation; provided,
further, that except as otherwise permitted under Section 12 of the Plan, if (i) the Committee reduces the Exercise Price
of any Option or the Strike Price of any SAR, (ii) the Committee cancels any outstanding Option or SAR and replaces it with a new
Option or SAR (with a lower Exercise Price or Strike Price, as the case may be) or other Award or cash in a manner which would
either (A) be reportable on the Company’s proxy statement or Form 10-K (if applicable) as Options which have been “repriced”
(as such term is used in Item 402 of Regulation S-K promulgated under the Exchange Act), or (B) result in any “repricing”
for financial statement reporting purposes (or otherwise cause the Award to fail to qualify for equity accounting treatment) or
(iii) the Committee takes any other action which is considered a “repricing” for purposes of the shareholder approval
rules of the applicable securities exchange or inter-dealer quotation service on which the Common Stock is listed or quoted, then,
in the case of the immediately preceding clauses (i) through (iii), any such action shall not be effective without shareholder
approval.

 

15.     
General. 

 

(a)               
Award Agreements; Other Agreements. Each Award under the Plan shall be evidenced by an Award agreement, which shall
be delivered to the Participant and shall specify the terms and conditions of the Award and any rules applicable thereto. An Award
agreement may be in written or electronic form and shall be signed (either in written or electronic form) by the Participant and
a duly authorized representative of the Company. The terms of any Award agreement, or any employment, change-in-control, severance
or other agreement in effect with the Participant, may have terms or features different from and/or additional to those set forth
in the Plan, and, unless expressly provided otherwise in such Award or other agreement, shall control in the event of any conflict
with the terms of the Plan.

 

(b)              
Nontransferability. 

 

(i)                
Each Award shall be exercisable only by the Participant during the Participant’s lifetime, or, if permissible under
applicable law, by the Participant’s legal guardian or representative. No Award may be assigned, alienated, pledged, attached,
sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution and
any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against
the Company or an Affiliate; provided, that the designation of a beneficiary shall not constitute an assignment, alienation,
pledge, attachment, sale, transfer or encumbrance.

 

(ii)              
Notwithstanding the foregoing, the Committee may permit Awards (other than Incentive Stock Options) to be transferred by
the Participant, without consideration, subject to such rules as the Committee may adopt, to: (A) any person who is a “family
member” of the Participant, as such term is used in the instructions to Form S-8 under the Securities Act or any successor
form of registration statements promulgated by the Securities and Exchange Commission (collectively, the “Immediate
Family Members”); (B) a trust solely for the benefit of the Participant and his Immediate Family Members; (C) a partnership
or limited liability company whose only partners or shareholders are the Participant and his Immediate Family Members; or (D) any
other transferee as may be approved either (1) by the Board or the Committee, or (2) as provided in the applicable Award agreement;
(each transferee described in clauses (A), (B), (C) and (D) above is hereinafter referred to as a “Permitted Transferee”);
provided, that the Participant gives the Committee advance written notice describing the terms and conditions of the proposed
transfer and the Committee notifies the Participant in writing that such a transfer would comply with the requirements of the Plan.

 

    	17

    	 

    

(iii)            
The terms of any Award transferred in accordance with the immediately preceding sentence shall apply to the Permitted Transferee
and any reference in the Plan, or in any applicable Award agreement, to the Participant shall be deemed to refer to the Permitted
Transferee, except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of
descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall
be in effect a registration statement on an appropriate form covering the shares of Common Stock to be acquired pursuant to the
exercise of such Option if the Committee determines, consistent with any applicable Award agreement, that such a registration statement
is necessary or appropriate; (C) the Committee or the Company shall not be required to provide any notice to a Permitted Transferee,
whether or not such notice is or would otherwise have been required to be given to the Participant under the Plan or otherwise;
and (D) the consequences of the termination of the Participant’s employment by, or services to, the Company or an Affiliate
under the terms of the Plan and the applicable Award agreement shall continue to be applied with respect to the transferred Award,
including, without limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the
periods, specified in the Plan and the applicable Award agreement.

 

(c)               
Dividends and Dividend Equivalents. The Committee may provide the Participant as part of an Award with dividends
or dividend equivalents, payable in cash, shares of Common Stock, other securities, other Awards or other property, on a current
or deferred basis, on such terms and conditions as may be determined by the Committee, including, without limitation, payment directly
to the Participant, withholding of such amounts by the Company subject to vesting of the Award or reinvestment in additional shares
of Common Stock, Restricted Stock or other Awards; provided, that no dividends or dividend equivalents shall be payable
in respect of outstanding (i) Options or SARs or (ii) unearned Performance Compensation Awards or other unearned Awards subject
to performance conditions (other than or in addition to the passage of time); provided, further, that dividend equivalents
may be accumulated in respect of unearned Awards and paid as soon as administratively practicable, but no more than 60 days, after
such Awards are earned and become payable or distributable (and the right to any such accumulated dividends or dividend equivalents
shall be forfeited upon the forfeiture of the Award to which such dividends or dividend equivalents relate).

 

(d)              
Tax Withholding. 

 

(i)                
The Participant shall be required to pay to the Company or any Affiliate, and the Company or any Affiliate shall have the
right (but not the obligation) and is hereby authorized to withhold, from any cash, shares of Common Stock, other securities or
other property deliverable under any Award or from any compensation or other amounts owing to the Participant, the amount (in cash,
Common Stock, other securities or other property) of any required withholding taxes in respect of an Award, its exercise, or any
payment or transfer under an Award or under the Plan and to take such other action as the Committee or the Company deem necessary
to satisfy all obligations for the payment of such withholding taxes.

 

(ii)              
Without limiting the generality of clause (i) above, the Committee may permit the Participant to satisfy, in whole or in
part, the foregoing withholding liability by (A) payment in cash; (B) the delivery of shares of Common Stock (which are not subject
to any pledge or other security interest) owned by the Participant having a Fair Market Value equal to such withholding liability
or (C) having the Company withhold from the number of shares of Common Stock otherwise issuable or deliverable pursuant to the
exercise or settlement of the Award a number of shares with a Fair Market Value equal to such withholding liability.

 

    	18

    	 

    

(e)               
No Claim to Awards; No Rights to Continued Employment. No employee of the Company or an Affiliate, or other person,
shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected
for a grant of any other Award. There is no obligation for uniformity of treatment of Participants or holders or beneficiaries
of Awards. The terms and conditions of Awards and the Committee’s determinations and interpretations with respect thereto
need not be the same with respect to each Participant and may be made selectively among Participants, whether or not such Participants
are similarly situated. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right
to be retained in the employ or service of the Company or an Affiliate, nor shall it be construed as giving any Participant any
rights to continued service on the Board.

 

(f)               
International Participants. With respect to Participants who reside or work outside of the United States and who
are not (and who are not expected to be) “covered employees” within the meaning of Section 162(m) of the Code, the
Committee may amend the terms of the Plan or appendices thereto, or outstanding Awards, with respect to such Participants, in order
to conform such terms with or accommodate the requirements of local laws, procedures or practices or to obtain more favorable tax
or other treatment for the Participant, the Company or its Affiliates. Without limiting the generality of this subsection, the
Committee is specifically authorized to adopt rules, procedures and sub-plans with provisions that limit or modify rights on death,
disability, retirement or other terminations of employment, available methods of exercise or settlement of an Award, payment of
income, social insurance contributions or payroll taxes, withholding procedures and handling of any stock certificates or other
indicia of ownership which vary with local requirements. The Committee may also adopt rules, procedures or sub-plans applicable
to particular Affiliates or locations.

 

(g)               
Beneficiary Designation. The Participant’s beneficiary shall be deemed to be his spouse (or domestic partner
if such status is recognized by the Company and in such jurisdiction), or if the Participant is otherwise unmarried at the time
of death, his estate, except to the extent a different beneficiary is designated in accordance with procedures that may be established
by the Committee from time to time for such purpose. Notwithstanding the foregoing, in the absence of a beneficiary validly designated
under such Committee-established procedures and/or applicable law who is living (or in existence) at the time of death of a Participant
residing or working outside the United States, any required distribution under the Plan shall be made to the executor or administrator
of the estate of the Participant, or to such other individual as may be prescribed by applicable law.

 

(h)              
Termination of Employment or Service. Except as otherwise provided in an Award agreement, or any employment, consulting,
change-in-control, severance or other agreement between the Participant and the Company or an Affiliate, unless determined otherwise
by the Committee: (i) neither a temporary absence from employment or service due to illness, vacation or leave of absence (including,
without limitation, a call to active duty for military service through a Reserve or National guard unit) nor a transfer from employment
or service with the Company to employment or service with an Affiliate (or vice versa) shall be considered a termination of employment
or service with the Company or an Affiliate; and (ii) if the Participant’s employment with the Company or its Affiliates
terminates, but such Participant continues to provide services with the Company or its Affiliates in a non-employee capacity (including
as a non-employee director) (or vice versa), such change in status shall not be considered a termination of employment or service
with the Company or an Affiliate for purposes of the Plan.

 

(i)                
No Rights as a Shareholder. Except as otherwise specifically provided in the Plan or any Award agreement, no person
shall be entitled to the privileges of ownership in respect of shares of Common Stock which are subject to Awards hereunder until
such shares have been issued or delivered to that person.

 

    	19

    	 

    

(j)                
Government and Other Regulations. 

 

(i)                
Nothing in the Plan shall be deemed to authorize the Committee or Board or any members thereof to take any action contrary
to applicable law or regulation, or rules of NASDAQ or any other securities exchange or inter-dealer quotation service on which
the Common Stock is listed or quoted.

 

(ii)              
The obligation of the Company to settle Awards in Common Stock or other consideration shall be subject to all applicable
laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions
of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from
offering to sell or selling, any shares of Common Stock pursuant to an Award unless such shares have been properly registered for
sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of
counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to and in compliance
with the terms of an available exemption. The Company shall be under no obligation to register for sale under the Securities Act
any of the shares of Common Stock to be offered or sold under the Plan. The Committee shall have the authority to provide that
all shares of Common Stock or other securities of the Company or any Affiliate delivered under the Plan shall be subject to such
stop transfer orders and other restrictions as the Committee may deem advisable under the Plan, the applicable Award agreement,
the U.S. federal securities laws, or the rules, regulations and other requirements of the U.S. Securities and Exchange Commission,
any securities exchange or inter-dealer quotation service upon which such shares or other securities of the Company are then listed
or quoted and any other applicable federal, state, local or non-U.S. laws, rules, regulations and other requirements, and, without
limiting the generality of Section 9 of the Plan, the Committee may cause a legend or legends to be put on any such certificates
of Common Stock or other securities of the Company or any Affiliate delivered under the Plan to make appropriate reference to such
restrictions or may cause such Common Stock or other securities of the Company or any Affiliate delivered under the Plan in book-entry
form to be held subject to the Company’s instructions or subject to appropriate stop-transfer orders. Notwithstanding any
provision in the Plan to the contrary, the Committee reserves the right to add any additional terms or provisions to any Award
granted under the Plan that it in its sole discretion deems necessary or advisable in order that such Award complies with the legal
requirements of any governmental entity to whose jurisdiction the Award is subject.

 

(iii)            
The Committee may cancel an Award or any portion thereof if it determines that legal or contractual restrictions and/or
blockage and/or other market considerations would make the Company’s acquisition of shares of Common Stock from the public
markets, the Company’s issuance of Common Stock to the Participant, the Participant’s acquisition of Common Stock from
the Company and/or the Participant’s sale of Common Stock to the public markets, illegal, impracticable or inadvisable. If
the Committee determines to cancel all or any portion of an Award in accordance with the foregoing, unless prevented by applicable
laws, the Company shall pay to the Participant an amount equal to the excess of (A) the aggregate Fair Market Value of the shares
of Common Stock subject to such Award or portion thereof canceled (determined as of the applicable exercise date, or the date that
the shares would have been vested or delivered, as applicable), over (B) the aggregate Exercise Price or Strike Price (in the case
of an Option or SAR, respectively) or any amount payable as a condition of delivery of shares of Common Stock (in the case of any
other Award). Such amount shall be delivered to the Participant as soon as practicable following the cancellation of such Award
or portion thereof.

 

    	20

    	 

    

(k)              
No Section 83(b) Elections Without Consent of Company. No election under Section 83(b) of the Code or under a similar
provision of law may be made unless expressly permitted by the terms of the applicable Award agreement or by action of the Committee
in writing prior to the making of such election. If the Participant, in connection with the acquisition of shares of Common Stock
under the Plan or otherwise, is expressly permitted to make such election and the Participant makes the election, the Participant
shall notify the Company of such election within ten days of filing notice of the election with the Internal Revenue Service or
other governmental authority, in addition to any filing and notification required pursuant to Section 83(b) of the Code or other
applicable provision.

 

(l)                
Payments to Persons Other Than Participants. If the Committee shall find that any person to whom any amount is payable
under the Plan is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any payment due
to such person or his estate (unless a prior claim therefor has been made by a duly appointed legal representative or a beneficiary
designation form has been filed with the Company) may, if the Committee so directs the Company, be paid to his spouse, child, relative,
an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient
on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the
Committee and the Company therefor.

 

(m)            
Nonexclusivity of the Plan. Neither the adoption of the Plan by the Board nor the submission of the Plan to the shareholders
of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the granting of stock options otherwise than under the Plan,
and such arrangements may be either applicable generally or only in specific cases.

 

(n)              
No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company or any Affiliate, on the one hand, and the Participant or other
person or entity, on the other hand. No provision of the Plan or any Award shall require the Company, for the purpose of satisfying
any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made
or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of
the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights
under the Plan other than as unsecured general creditors of the Company.

 

(o)              
Reliance on Reports. Each member of the Committee and each member of the Board (and their respective designees) shall
be fully justified in acting or failing to act, as the case may be, and shall not be liable for having so acted or failed to act
in good faith, in reliance upon any report made by the independent registered public accounting firm of the Company and its Affiliates
and/or any other information furnished in connection with the Plan by any agent of the Company or the Committee or the Board, other
than himself.

 

(p)              
Relationship to Other Benefits. No payment under the Plan shall be taken into account in determining any benefits
under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically
provided in such other plan.

 

(q)              
Purchase for Investment. Whether or not the Options and shares covered by the Plan have been registered under the
Securities Act, each person exercising an Option under the Plan or acquiring shares under the Plan, may be required by the Company
to give a representation in writing that such person is acquiring such shares for investment and not with a view to, or for sale
in connection with, the distribution of any part thereof. The Company will endorse any necessary legend referring to the foregoing
restriction upon the certificate or certificates representing any shares issued or transferred to the Participant upon the exercise
of any Option granted under the Plan.

 

    	21

    	 

    

(r)                
Governing Law. The Plan shall be governed by and construed in accordance with the laws of the State of Delaware,
without regard to principles of conflicts of laws thereof, or principles of conflicts of laws of any other jurisdiction which could
cause the application of the laws of any jurisdiction other than the State of Delaware.

 

(s)               
Severability. If any provision of the Plan or any Award or Award agreement is or becomes or is deemed to be invalid,
illegal, or unenforceable in any jurisdiction or as to any person or entity or Award, or would disqualify the Plan or any Award
under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable
laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent
of the Plan or the Award, such provision shall be construed or deemed stricken as to such jurisdiction, person or entity or Award
and the remainder of the Plan and any such Award shall remain in full force and effect.

 

(t)                
Obligations Binding on Successors. The obligations of the Company under the Plan shall be binding upon any successor
corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor
corporation or organization succeeding to all or substantially all of the assets and business of the Company.

 

(u)              
409A of the Code.

 

(i)                
It is intended that the Plan comply with Section 409A of the Code, and all provisions of the Plan shall be construed and
interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. Each Participant
is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or in respect of such Participant
in connection with the Plan or any other plan maintained by the Company, including any taxes and penalties under Section 409A of
the Code, and neither the Company nor any Affiliate shall have any obligation to indemnify or otherwise hold such Participant or
any beneficiary harmless from any or all of such taxes or penalties. With respect to any Award that is considered “deferred
compensation” subject to Section 409A of the Code, references in the Plan to “termination of employment” (and
substantially similar phrases) shall mean “separation from service” within the meaning of Section 409A of the Code.
For purposes of Section 409A of the Code, each of the payments that may be made in respect of any Award granted under the Plan
is designated as a separate payment.

 

(ii)              
Notwithstanding anything in the Plan to the contrary, if the Participant is a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Code, no payments or deliveries in respect of any Awards that are “deferred compensation”
subject to Section 409A of the Code shall be made to such Participant prior to the date that is six months after the date of such
Participant’s “separation from service” within the meaning of Section 409A of the Code or, if earlier, the Participant’s
date of death. All such delayed payments or deliveries will be paid or delivered (without interest) in a single lump sum on the
earliest date permitted under Section 409A of the Code that is also a business day.

 

(iii)            
In the event that the timing of payments in respect of any Award that would otherwise be considered “deferred compensation”
subject to Section 409A of the Code would be accelerated upon the occurrence of (A) a Change in Control, no such acceleration shall
be permitted unless the event giving rise to the Change in Control satisfies the definition of a change in the ownership or effective
control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation pursuant to Section
409A of the Code and any Treasury Regulations promulgated thereunder or (B) a Disability, no such acceleration shall be permitted
unless the Disability also satisfies the definition of “Disability” pursuant to Section 409A of the Code and any Treasury
Regulations promulgated thereunder.

 

    	22

    	 

    

(v)              
Clawback/Forfeiture. Notwithstanding anything to the contrary contained herein, an Award agreement may provide that
the Committee may cancel such Award if the Participant, without the consent of the Company, has engaged in or engages in activity
that is in conflict with or adverse to the interest of the Company or any Affiliate while employed by or providing services to
the Company or any Affiliate, including fraud or conduct contributing to any financial restatements or irregularities, or violates
a non-competition, non-solicitation, non-disparagement or non-disclosure covenant or agreement with the Company or any Affiliate,
as determined by the Committee. The Committee may also provide in an Award agreement that in such event, the Participant will forfeit
any compensation, gain or other value realized thereafter on the vesting, exercise or settlement of such Award, the sale or other
transfer of such Award, or the sale of shares of Common Stock acquired in respect of such Award, and must promptly repay such amounts
to the Company. The Committee may also provide in an Award agreement that if the Participant receives any amount in excess of what
the Participant should have received under the terms of the Award for any reason (including without limitation by reason of a financial
restatement, mistake in calculations or other administrative error), all as determined by the Committee, then the Participant shall
be required to promptly repay any such excess amount to the Company. To the extent required by applicable law (including, without
limitation, Section 304 of the Sarbanes-Oxley Act and Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection
Act) and/or the rules and regulations of NASDAQ or any other securities exchange or inter-dealer quotation service on which the
Common Stock is listed or quoted, or if so required pursuant to a written policy adopted by the Company, Awards shall be subject
(including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated
by reference into all outstanding Award agreements).

 

(w)             
No Representations or Covenants With Respect to Tax Qualification. Although the Company may endeavor to (i) qualify
an Award for favorable U.S. or non-U.S. tax treatment or (ii) avoid adverse tax treatment, the Company makes no representation
to that effect and expressly disavows any covenant to maintain favorable or avoid unfavorable tax treatment. The Company shall
be unconstrained in its corporate activities without regard to the potential negative tax impact on holders of Awards under the
Plan.

 

(x)              
Code Section 162(m) Re-approval. If the Company becomes subject to the provisions of Section 162(m) of the Code,
the Committee may, for purposes of exempting certain Awards granted after such time from the deduction limitations of Section 162(m)
of the Code, submit the provisions of the Plan regarding Performance Compensation Awards for re-approval by the shareholders of
the Company (i) prior to the first shareholder meeting at which directors are to be elected that occurs in calendar year 2019,
or such earlier time as required under applicable Treasury Regulations, and (ii) thereafter not later than every five years in
accordance with applicable Treasury Regulations. Nothing in this subsection, however, shall affect the validity of Awards granted
after such time if such shareholder approval has not been obtained.

 

(y)              
Expenses; Gender; Titles and Headings. The expenses of administering the Plan shall be borne by the Company and its
Affiliates. Masculine pronouns and other words of masculine gender shall refer to both men and women. 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.

 

*           *           *

 

As adopted by the Board of Directors of the Company on July 29,
2015.

 

As approved by the shareholders of the Company on July 29, 2015.

 

 

    	23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}]]