Document:

Exhibit 10.1

 

I-MAB 天境生物 

2022 SHARE INCENTIVE PLAN 

ARTICLE I. PURPOSE

 

The
purpose of this 2022 Share Incentive Plan (the “Plan”) is to promote the success and enhance the value of I-MAB 天境生物,
an exempted company incorporated under the laws of the Cayman Islands (the “Company”), by linking the personal interests
of Service Providers to those of the Company’s shareholders and by providing such individuals with an incentive for outstanding
performance to generate superior returns to the Company’s shareholders. Capitalized terms used in the Plan are defined in Article XI
below.

 

ARTICLE II.

ELIGIBILITY

 

Service
Providers of the Company, including Directors, Employees, Consultants and other service providers that the Administrator deems
appropriate, are eligible to participate in the Plan, subject to the limitations described herein.

 

ARTICLE III.

ADMINISTRATION AND DELEGATION

 

3.1           Administration.
The Plan will be administered by the Administrator. The Administrator shall have authority to determine which Service Providers will receive
Awards, to grant Awards and to set all terms and conditions of Awards (including, but not limited to, vesting, exercise and forfeiture
provisions). In addition, the Administrator shall have the authority to take all actions and make all determinations contemplated by the
Plan and to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan as it shall deem advisable.
The Administrator may correct any defect or ambiguity, supply any omission or reconcile any inconsistency in the Plan or any Award in
the manner and to the extent it shall deem necessary or appropriate to carry the Plan and any Awards into effect, as determined by the
Administrator. The Administrator shall make all determinations under the Plan in the Administrator’s sole discretion and all such
determinations shall be final and binding on all persons having or claiming any interest in the Plan or in any Award. Notwithstanding
the foregoing, the full Board, acting by majority of its members in office, shall conduct the general administration of the Plan if required
by the Applicable Laws, and with respect to the Awards granted or to be granted to the Administrator(s).

 

3.2           Appointment
of Administrator. To the extent permitted by the Applicable Laws and the Sixth Amended and Restated Memorandum and Articles
of Association of the Company (as may be further amended and/or restated from time to time), the Board may delegate any or all of its
powers under the Plan to one or more Administrators.

 

ARTICLE IV. 

SHARES AVAILABLE FOR AWARDS

 

4.1           Number
of Shares. Subject to Article VIII, the maximum aggregate number of Ordinary Shares which may be issued pursuant to all
Awards under the Plan (the “Award Pool”) shall be 13,148,594 Ordinary Shares; provided that the maximum number of Ordinary
Shares which may be issued pursuant to Awards in the form of Restricted Share Units under this Plan shall not exceed 5,478,577 Ordinary
Shares. Notwithstanding the foregoing, if the Company successfully complete extraordinary goals as approved by the Board, or such extraordinary
goals are waived by the Board, the Award Pool shall be 15,340,034 Ordinary Shares; provided that the maximum number of Ordinary Shares
which may be issued pursuant to Awards in the form of Restricted Share Units under this Plan shall not exceed 7,670,017 Ordinary Shares.
If any Award expires or lapses or is terminated, surrendered or canceled without having been fully exercised or is forfeited in whole
or in part, in any case in a manner that results in any Ordinary Shares covered by such Award not being issued or being so reacquired
by the Company, the unused Ordinary Shares covered by such Award shall again be available for the grant of Awards under the Plan. The
size of the Award Pool shall be proportionately adjusted in the event of any share dividend, subdivision, reclassification, recapitalization,
split, reverse split, combination, consolidation or similar transactions.

 

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4.2           Shares
Distributed. Any Ordinary Shares distributed pursuant to an Award may consist in whole or in part, of authorized and unissued Ordinary
Shares, treasury Ordinary Shares (subject to the Applicable Laws) or Ordinary Shares purchased on the open market. Additionally, at the
discretion of the Administrator, any Ordinary Shares distributed pursuant to an Award may be represented by American Depository Shares.

 

ARTICLE V.

SHARE OPTIONS

 

5.1           General.
The Administrator may grant Options to any Service Provider. The exercise price of each Option and the conditions and limitations applicable
to the exercise of each Option, including, without limitation, conditions relating to the Applicable Laws, as it considers necessary or
advisable.

 

5.2           Exercise
Price. The exercise price per Ordinary Share subject to an Option shall be determined by the Administrator and set forth in the Award
Agreement which may be a fixed price or a variable price related to the Fair Market Value of the Ordinary Shares. The exercise price per
Ordinary Share subject to an Option may be amended or adjusted in the absolute discretion of the Administrator, the determination of which
shall be final, binding and conclusive. Notwithstanding anything in the foregoing, the exercise price shall in no circumstances be less
than the par value of the Ordinary Shares.

 

5.3           Duration
of Options. Each Option shall be exercisable at such times and subject to such terms and conditions as the Administrator may
specify, provided that the term of any Option shall not exceed ten years.

 

5.4           Conditions
of Exercise. The Administrator shall determine the time or times at which an Option may be exercised in whole or in part. The Administrator
shall also determine any conditions, if any, that must be satisfied before all or part of an Option may be exercised.

 

5.5           Performance
Conditions of Vesting. No performance conditions shall be set for Options, unless the Administrator otherwise determined.

 

5.6           Exercise
of Option. Options may be exercised by delivering a written notice of exercise to the Company, in a form approved by the Administrator
(which may be an electronic form), signed by the person authorized to exercise the Option, together with payment in full (i) as specified
in Section 5.7 hereof for the number of Ordinary Shares for which the Option is exercised and (ii) as specified in Section 9.5
hereof for any applicable withholding taxes. Unless otherwise determined by the Administrator, an Option may not be exercised for a fraction
of an Ordinary Share.

 

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5.7           Payment
Upon Exercise. The Administrator shall determine the methods by which the exercise price of an Option may be paid, the form of payment,
including, without limitation (i) cash or check denominated in U.S. Dollars, (ii) to the extent permissible under the Applicable
Laws, cash or check in Chinese Renminbi, (iii) cash or check denominated in any other local currency as approved by the Administrator,
(iv) Ordinary Shares held for such period of time as may be required by the Administrator in order to avoid adverse financial accounting
consequences and having a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion
thereof, (v) after the trading date the delivery of a notice that the Participant has placed a market sell order with a broker with
respect to shares then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the
net proceeds of the sale to the Company in satisfaction of the Option exercise price; provided that payment of such proceeds is then made
to the Company upon settlement of such sale, (vi) other property acceptable to the Administrator with a Fair Market Value equal to
the exercise price, or (vii) any combination of the foregoing. Notwithstanding any other provision of the Plan to the contrary, no
Participant who is a member of the Board or an “executive officer” of the Company within the meaning of Section 13(k) of
the Exchange Act shall be permitted to pay the exercise price of an Option in any method which would violate Section 13(k) of
the Exchange Act.

  

5.8           ISO.
ISO may be granted to Employees of the Company or a Subsidiary of the Company. ISO may not be granted to employees of a Related Entity
or to independent directors or Consultants. The terms of any ISO granted pursuant to the Plan, in addition to the requirements of Section 5,
must comply with the following additional provisions of this Section 5.8:

 

(a)            Individual Dollar
Limitation. The aggregate Fair Market Value (determined as of the time the Option is granted) of all Ordinary Shares with respect
to which ISOs are first exercisable by a Participant in any calendar year may not exceed US$100,000 or such other limitation as imposed
by Section 422(d) of the Code, or any successor provision. To the extent that ISOs are first exercisable by a Participant in
excess of such limitation, the excess shall be considered Non-Qualified Stock Options.

 

(b)           Exercise Price.
The exercise price of an ISO shall be equal to the Fair Market Value on the date of grant. However, the exercise price of any ISO granted
to any individual who, at the date of grant, owns Ordinary Shares possessing more than ten percent of the total combined voting power
of all classes of shares of the Company or any Parent or Subsidiary of the Company may not be less than 110% of Fair Market Value on the
date of grant and such Option may not be exercisable for more than five years from the date of grant. Notwithstanding anything in the
foregoing, the exercise price per Ordinary Share shall in no circumstances be less than the par value of such Ordinary Share.

 

(c)           Transfer Restriction.
The Participant shall give the Company prompt notice of any disposition of Ordinary Shares acquired by exercise of an ISO within (i) two
years from the date of grant of such ISO or (ii) one year after the transfer of such Ordinary Shares to the Participant.

 

(d)           Expiration of
ISOs. No Award of an ISO may be made pursuant to this Plan after the tenth anniversary of the Adoption Date.

 

(e)            Right to Exercise.
During a Participant’s lifetime, an ISO may be exercised only by the Participant.

 

ARTICLE VI. 

RESTRICTED SHARE UNITS

 

6.1           General.
The Administrator may grant Restricted Share Units to any Service Provider, subject to the right of the Company to require forfeiture
of such Restricted Share Units at no cost in the event that conditions specified by the Administrator in the applicable Award Agreement
are not satisfied prior to the end of the applicable restriction period or periods established by the Administrator for such Award.

 

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6.2           Vesting
Schedule for Restricted Share Unit Award. The Administrator may, in connection with the grant of Restricted Share Units, condition
the vesting thereof upon the continued service of the Participant, upon the Participant’s performance of duties, upon the attainment
of specified Performance Conditions during an applicable period or upon any other basis determined by the Administrator in its sole discretion.
An Award of Restricted Share Units shall be settled as and when the Restricted Share Units vest or at a later time specified by the Administrator
or in accordance with an election of the Participant, if the Administrator so permits. Except as otherwise set forth in an Award Agreement
for Restricted Share Units, prior to the settlement of a Restricted Share Unit Award in Ordinary Shares, a Participant shall have no rights
as a shareholder of the Company with respect to the Ordinary Shares subject to such Award; provided, however, that the Award Agreement
may specify whether the Participant shall be entitled to receive Dividend Equivalents, and, if determined by the Administrator, interest
on, or the deemed reinvestment of, any deferred dividend equivalents, with respect to the number of Ordinary Shares subject to the Award
of Restricted Share Units, provided that any dividend equivalents with respect to Restricted Share Units subject to performance-based
vesting conditions shall be subject to the same vesting conditions as the underlying Award.

 

6.3           Forfeiture/Repurchase.
Except as otherwise determined by the Administrator at the time of the grant of the Award or thereafter, upon the respective vesting date,
any unvested Restricted Share Units that is supposed to be subject to vesting other than those based on time attribution shall be forfeited
or repurchased in accordance with the Award Agreement; provided, however, the Administrator may (a) provide in any Award Agreement
that restrictions or forfeiture and repurchase conditions relating to Restricted Share Units will be waived in whole or in part in the
event of terminations resulting from specified causes, and (b) in other cases waive in whole or in part restrictions or forfeiture
and repurchase conditions relating to Restricted Share Units.

 

		6.4	Additional Provisions Relating to Restricted Share Units.

 

(a)           Settlement.
Upon the vesting of a Restricted Share Unit, the Participant shall be entitled to receive from the Company one Ordinary Share on the settlement
date.

 

(b)           Voting
Rights. A Participant shall have no voting rights with respect to any Restricted Share Units unless and until shares are delivered
in settlement thereof.

 

(c)           Dividend
Equivalents. To the extent provided by the Administrator, a grant of Restricted Share Units may provide a Participant with the right
to receive Dividend Equivalents. Dividend Equivalents may be paid currently or credited to an account for the Participant, may be settled
in cash and/or Ordinary Shares and may be subject to the same restrictions on transfer and forfeitability as the Restricted Share Units
with respect to which the Dividend Equivalents are paid, as determined by the Administrator.

 

ARTICLE VII. 

OTHER SHARE-BASED AWARDS

 

Other Share-Based Awards may
be granted hereunder to Participants, including, without limitation, Awards entitling Participants to receive Ordinary Shares to be delivered
in the future. Such Other Share- Based Awards shall also be available as a form of payment in the settlement of other Awards granted under
the Plan, as stand-alone payments and/or as payment in lieu of compensation to which a Participant is otherwise entitled. Other Share-Based
Awards may be paid in Ordinary Shares, cash or other property, as the Administrator shall determine. Subject to the provisions of the
Plan, the Administrator shall determine the terms and conditions of each Other Share-Based Award, including, without limitation, any purchase
price, transfer restrictions, vesting conditions and other terms and conditions applicable thereto.

 

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ARTICLE VIII. 

ADJUSTMENTS FOR CHANGES IN ORDINARY SHARES AND
CERTAIN OTHER EVENTS

 

8.1           Certain
Transactions or Events. In the event that the Administrator determines that any dividend or other distribution (whether in the form
of cash, Ordinary Shares, other securities, or other property), reorganization, merger, consolidation, combination, repurchase, recapitalization,
liquidation, dissolution, or sale, transfer, exchange or other disposition of assets of the Company, or sale or exchange of Ordinary Shares
or other securities of the Company, or other similar corporate transaction or event, as determined by the Administrator, affects the Ordinary
Shares such that an adjustment is determined by the Administrator to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any Award, then the Administrator
may, in such manner as it may deem equitable, adjust any or all of:

 

(a)           the
number and kind of Ordinary Shares (or other securities or property) with respect to which Awards may be granted or awarded;

 

(b)           the
number and kind of Ordinary Shares (or other securities or property) subject to outstanding Awards;

 

(c)           the
grant or exercise price with respect to any Award, provided that the exercise price per Ordinary Share shall in no circumstances
fall below the par value of such Ordinary Share; and

 

(d)           the
terms and conditions of any Awards (including, without limitation, any applicable financial or other performance “targets”
specified in an Award Agreement).

 

8.2           Miscellaneous.
Except as expressly provided in the Plan or pursuant to action of the Administrator under the Plan, no Participant shall have any rights
by reason of any subdivision or consolidation of shares of any class, the payment of any dividend, any increase or decrease in the number
of shares of any class or any dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly
provided in the Plan or pursuant to action of the Administrator under the Plan, no issuance by the Company of shares of any class, or
securities convertible into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the
number of Ordinary Shares subject to an Award or the grant or exercise price of any Award. The existence of the Plan, any Award Agreements
and the Awards granted hereunder shall not affect or restrict in any way the right or power of the Company to make or authorize (i) any
adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, (ii) any merger,
consolidation dissolution or liquidation of the Company or sale of Company assets or (iii) any sale or issuance of securities, including,
without limitation, securities with rights superior to those of the Ordinary Shares or which are convertible into or exchangeable for
the Ordinary Shares. The Administrator may treat Participants and Awards (or portions thereof) differently under this Article VIII.

 

ARTICLE IX. 

GENERAL PROVISIONS APPLICABLE TO AWARDS

 

9.1           Transferability.
Except as the Administrator may otherwise determine or provide in an Award Agreement or otherwise, in any case in accordance with the
Applicable Laws, Awards, including any interest therein, may not be sold, assigned, transferred, pledged or otherwise encumbered by the
person to whom they are granted, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and,
during the life of the Participant, shall be exercisable only by the Participant. References to a Participant, to the extent relevant
in the context, shall include references to authorized transferees.

 

9.2           Documentation.
Each Award shall be evidenced by an Award Agreement, which may be in such form (written, electronic or otherwise) as the Administrator
shall determine. Each Award may contain terms and conditions in addition to those set forth in the Plan.

 

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9.3           Discretion.
Except as otherwise provided by the Plan, each Award may be made alone or in addition or in relation to any other Award. The terms of
each Award to a Participant need not be identical, and the Administrator need not treat Participants or Awards (or portions thereof) uniformly.

 

9.4           Lapse
of Options and Restricted Share Units.

 

(a)           Lapse
for Death or Illness. If a Participant ceases to be a Service Provider by reason of (i) the Participant’s death, or (ii) the
Participant’s serious illness or injury which, in the opinion of the Board, renders the Participant concerned unfit to perform the
duties of his or her employment or engagement and which in the normal course would render the Participant unfit to continue performing
the duties under his or her contract provided such illness or injury is not self-inflicted or as a result of alcohol or drug abuse; then
any unvested Option and Restricted Share Unit will immediately lapse and the Participant or his or her personal representatives (if appropriate)
may exercise all his or her vest options within six (6) months after the above-mentioned event occurs.

 

(b)           Lapse
on Termination for Cause. If a Participant ceases to be a Service Provider by any of the following reason: (i) any act of grave
misconduct or willful default or willful neglect in the discharge of duties of the Participant with the Company; (ii) without prejudice
to the generality of (i) above, being proven to have carried out any fraudulent activity or have fraudulently failed to carry out
any activity whether or not in connection with the affairs of the Company; (iii) being convicted of any offence; (iv) being
proved to improperly take advantages of such Participant’s position to obtain personal financial gain for him/herself or for others;
(v) being proved to appropriate assets of the Company; (vi) serious violation or persistent breach of any terms of the employment
agreement, the confidentiality and intellectual property rights assignment agreement, the non-compete and non-solicitation agreement,
the anti-bribery policies or any other agreements, policies or procedures that such Participant is subject to; (vii) repeated drunkenness
or use of illegal drugs or being addicted to gambling which adversely interferes with or is reasonably expected to adversely interfere
with the performance of such Participant’s obligations and duties of employment or engagement; and (viii) any other conduct
which, as the Administrator determines in good faith, would justify the termination of employment or service with such Participant, then
any unvested Option and Restricted Share Unit will immediately lapse and the Administrator may resolve the same to any vested Option and
Restricted Share Unit in its sole discretion.

 

(c)           Lapse on Cessation
for Other Reason. If a Participant ceases to be a Service Provider for any reason other than those set forth in paragraph (a) or
(b) above, then any unvested Option and Restricted Share Unit will immediately lapse and the Participant or his or her personal
representatives (if appropriate) may exercise all his or her vested Options within 30 days after the cessation, or such longer period
as the Administrator may otherwise determine.

 

9.5           Withholding.
Each Participant shall pay to the Company, or make provision satisfactory to the Administrator for payment of, and authorize the Company
(and/or the Company’s parent or subsidiary company employing or retaining the Participant), to the extent determined appropriate
by the Administrator and permissible under the Applicable Laws, to withhold from the Participant’s wages, subsidies or other compensation
payable to the Participant by the Company (and/or the Company’s parent or subsidiary company employing or retaining the Participant),
any taxes required by law to be withheld in connection with Awards to such Participant no later than the date of the event creating the
tax liability. Except as the Administrator may otherwise determine, all such payments shall be made in cash, by wire transfer of immediately
available funds or by certified check. Notwithstanding the foregoing, Participants may satisfy such tax obligations by (i) to the
extent permitted by the Administrator, in whole or in part by delivery of Ordinary Shares, including Ordinary Shares retained from the
Award creating the tax obligation, valued at their Fair Market Value, and (ii) if there is a public market for Ordinary Shares at
the time the tax obligations are satisfied, unless the Administrator otherwise determines, (A) delivery (including, without limitation,
telephonically to the extent permitted by the Company) of an irrevocable and unconditional undertaking by a broker acceptable to the Company
to deliver promptly to the Company sufficient funds to satisfy the tax obligations, or (B) delivery by the Participant to the Company
of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company cash
or a check sufficient to satisfy the tax withholding; provided that such amount is paid to the Company at such time as may be required
by the Administrator. The Company may, to the extent permitted by the Applicable Laws, deduct any such tax obligations based on applicable
withholding rates from any payment of any kind otherwise due to a Participant.

 

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9.6           Amendment
of Award. The Administrator may amend, modify or terminate any outstanding Award, including but not limited to, substituting
therefor another Award of the same or a different type, changing the date of exercise or settlement.

 

9.7           Conditions
on Delivery of Shares. The Company will not be obligated to deliver any Ordinary Shares pursuant to the Plan or to remove
restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have been met or removed to
the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters in connection with
the issuance and delivery of such shares have been satisfied, including, without limitation, any applicable securities laws and any
applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to
the Company such representations or agreements as the Administrator deems necessary or appropriate to satisfy the requirements of
any Applicable Laws. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority
is determined by the Administrator to be necessary to the lawful issuance and sale of any securities hereunder, shall relieve the
Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have
been obtained.

 

9.8           Acceleration.
The Administrator may at any time provide that any Award shall become vested and/or exercisable in full or in part, free of some or all
restrictions or conditions, or otherwise realizable in full or in part, as the case may be.

 

ARTICLE X.

 MISCELLANEOUS

 

10.1         No
Right To Employment or Other Status. No person shall have any claim or right to be granted an Award, and the grant of an Award shall
not be construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly
reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim
under the Plan or any Award, except as expressly provided in an applicable Award Agreement.

 

10.2         No
Rights As Shareholder; Certificates. Subject to the provisions of the applicable Award Agreement, no Participant or Designated Beneficiary
shall have any rights as a shareholder with respect to any Ordinary Shares to be distributed with respect to an Award until becoming the
record holder of such shares. Notwithstanding any other provision of the Plan, unless otherwise determined by the Administrator or required
by any Applicable Laws, the Company shall not be required to deliver to any Participant certificates evidencing Ordinary Shares issued
in connection with any Award and instead such Ordinary Shares may be recorded in the books of the Company (or, as applicable, its transfer
agent or share plan administrator). The Company may place legends on share certificates issued under the Plan deemed necessary or appropriate
by the Administrator in order to comply with Applicable Laws.

 

10.3         Effective
Date and Term of Plan. The Plan shall become effective on the Adoption Date. No Awards shall be granted under the Plan after the tenth
anniversary of the Adoption Date.

 

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10.4         Amendment
of Plan. At any time and from time to time, the Board may terminate, amend or modify the Plan; provided, however, that (a) to
the extent necessary and desirable to comply with Applicable Laws or stock exchange rules, the Company shall obtain shareholder approval
of any Plan amendment in such a manner and to such a degree as required, unless the Company decides to follow home country practice,
and (b) unless the Company decides to follow home country practice, shareholder approval is required for any amendment to the Plan
that (i) increases the number of Ordinary Shares available under the Plan (other than any adjustment as provided by Article VIII),
or (ii) permits the Administrator to extend the term of the Plan or the exercise period for an Option beyond ten years from the
date of grant.

 

10.5         Limitations
on Liability. Notwithstanding any other provisions of the Plan, no individual acting as a director, officer, other employee or agent
of the Company will be liable to any Participant, former Participant, spouse, beneficiary, or any other person for any claim, loss, liability,
or expense incurred in connection with the Plan or any Award, nor will such individual be personally liable with respect to the Plan because
of any contract or other instrument he or she executes in his or her capacity as an Administrator, director, officer, other employee or
agent of the Company. The Company will indemnify and hold harmless each director, officer, other employee and agent of the Company to
whom any duty or power relating to the administration or interpretation of the Plan has been or will be granted or delegated, against
any cost or expense (including, without limitation, attorneys’ fees) or liability (including, without limitation, any sum paid in
settlement of a claim with the Administrator’s approval) arising out of any act or omission to act concerning this Plan unless arising
out of such person’s own fraud or bad faith.

 

10.6         Data
Privacy. As a condition of receipt of any Award, each Participant explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of personal data as described in this paragraph by and among, as applicable, the Company and its
subsidiaries and affiliates for the exclusive purpose of implementing, administering and managing the Participant’s participation
in the Plan. The Company and its subsidiaries and affiliates may hold certain personal information about a Participant, including but
not limited to, the Participant’s name, home address and telephone number, date of birth, social security or insurance number or
other identification number, salary, nationality, job title(s), any shares held in the Company or any of its subsidiaries and affiliates,
details of all Awards, in each case, for the purpose of implementing, managing and administering the Plan and Awards (the “Data”).
The Company and its subsidiaries and affiliates may transfer the Data amongst themselves as necessary for the purpose of implementation,
administration and management of a Participant’s participation in the Plan, and the Company and its subsidiaries and affiliates
may each further transfer the Data to any third parties assisting the Company in the implementation, administration and management of
the Plan. These recipients may be located in the Participant’s country, or elsewhere, and the Participant’s country may have
different data privacy laws and protections than the recipients’ country. Through acceptance of an Award, each Participant authorizes
such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing,
administering and managing the Participant’s participation in the Plan, including, without limitation, any requisite transfer of
such Data as may be required to a broker or other third party with whom the Company or the Participant may elect to deposit any Ordinary
Shares. The Data related to a Participant will be held only as long as is necessary to implement, administer, and manage the Participant’s
participation in the Plan. A Participant may, at any time, view the Data held by the Company with respect to such Participant, request
additional information about the storage and processing of the Data with respect to such Participant, recommend any necessary corrections
to the Data with respect to the Participant or refuse or withdraw the consents herein in writing, in any case without cost, by contacting
his or her local human resources representative. The Company may cancel Participant’s ability to participate in the Plan and, in
the Administrator’s discretion, the Participant may forfeit any outstanding Awards if the Participant refuses or withdraws his
or her consents as described herein. For more information on the consequences of refusal to consent or withdrawal of consent, Participants
may contact their local human resources representative.

 

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10.7         Severability.
In the event any portion of the Plan or any action taken pursuant thereto shall be held illegal or invalid for any reason, the illegality
or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid
provisions had not been included, and the illegal or invalid action shall be null and void.

 

10.8         Governing
Documents. In the event of any contradiction between the Plan and any Award Agreement or any other written agreement between a Participant
and the Company or any Subsidiary of the Company that has been approved by the Administrator, the terms of the Plan shall govern, unless
it is expressly specified in such Award Agreement or other written document that a specific provision of the Plan shall not apply.

 

10.9         Submission
to Jurisdiction. By accepting an Award, each Participant irrevocably and unconditionally consents to submit to the exclusive jurisdiction
of the courts of New York, for any action arising out of or relating to the Plan (and agrees not to commence any litigation relating thereto
except in such courts), and further agrees that service of any process, summons, notice or document by registered mail to the address
contained in the records of the Company shall be effective service of process for any litigation brought against it in any such court.
By accepting an Award, each Participant irrevocably and unconditionally waives any objection to the laying of venue of any litigation
arising out of Plan or Award hereunder in the courts of New York, and further irrevocably and unconditionally waives and agrees not to
plead or claim in any such court that any such litigation brought in any such court has been brought in an inconvenient forum. By accepting
an Award, each Participant irrevocably and unconditionally waives, to the fullest extent permitted by the Applicable Laws, any and all
rights to trial by jury in connection with any litigation arising out of or relating to the Plan or any Award hereunder.

 

10.10       Governing
Law. The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance with the laws of
the Cayman Islands.

 

10.11       Conformity
to Securities Laws. Participant acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the
Securities Act and the Exchange Act and any and all regulations and rules promulgated by the U.S. Securities and Exchange Commission
thereunder, and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan and all Awards granted
hereunder shall be administered only in such a manner as to conform to such laws, rules and regulations. To the extent permitted
by the Applicable Laws, the Plan and all Award Agreements shall be deemed amended to the extent necessary to conform to such laws, rules and
regulations.

 

10.12       Limitations
Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan, and any Award granted or awarded
to any Participant who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth
in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange
Act) that are requirements for the application of such exemptive rule. To the extent permitted by the Applicable Laws, the Plan and Awards
granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

 

    	 	9 / 12
	 

     

    

 

10.13       Section 409A.
To the extent that the Administrator determines that any Award granted under the Plan is or may become subject to Section 409A of
the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code.
To the extent applicable, the Plan and the Award Agreements shall be interpreted in accordance with Section 409A of the Code and
the U.S. Department of Treasury regulations and other interpretative guidance issued thereunder, including without limitation any such
regulation or other guidance that may be issued after the Adoption Date. If an amount payable under an Award as a result of the Participant’s
termination of employment (other than due to death) occurring while the Participant is a “specified employee” under Section 409A
of the Code constitutes a deferral of compensation subject to Section 409A of the Code, then payment of such amount shall not occur
until six months and one day after the date of the Participant’s termination of employment, except as permitted under Section 409A
of the Code. If the Award includes a “series of installment payments” (within the meaning of Section 1.409A-2(b)(2)(iii) of
the U.S. Department of Treasury guidance), the Participant’s right to the series of installment payments shall be treated as a
right to a series of separate payments and not as a right to a single payment, and if the Award includes “dividend equivalents”
(within the meaning of Section 1.409A-3(e) of the U.S. Department of Treasury guidance), the Participant’s right to the
dividend equivalents shall be treated separately from the right to other amounts under the Award. Notwithstanding any provision of the
Plan to the contrary, in the event that following the Adoption Date the Administrator determines that any Award may be subject to Section 409A
of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the Adoption
Date), the Administrator may adopt such amendments to the Plan and the applicable Award agreement or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines
are necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment
of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and related
U.S. Department of Treasury guidance.

 

ARTICLE XI. 

DEFINITIONS AND CONSTRUCTION

 

Wherever the following terms
are used in the Plan, they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun
shall include the plural where the context so indicates.

 

11.1         “Adoption
Date” means June 17, 2022.

 

11.2         “Administrator”
means the Board or any authorized officer to the extent that the Board’s powers or authority under the Plan have been delegated
to such officer. Except otherwise determined by the Board, such Administrator shall initially being the Chief Executive Officer of the
Company.

 

11.3         “Applicable
Laws” means legal requirements relating to the Plan and the Awards under applicable provisions of the corporate, securities,
tax and other laws, rules, regulations and government orders, and the rules of any applicable stock exchange or national market system,
of any jurisdiction applicable to Awards granted to residents therein.

 

11.4         “Award”
means, individually or collectively, a grant under the Plan of Options, Restricted Shares, Restricted Share Units or Other Share-Based
Awards.

 

11.5         “Award
Agreement” means a written agreement evidencing an Award, which agreements may be in electronic medium and shall contain
such terms and conditions with respect to an Award as the Administrator shall determine, consistent with and subject to the terms and
conditions of the Plan.

 

		11.6	“Board” means the Board of Directors of the Company.

 

11.7         “Code”
means the U.S. Internal Revenue Code of 1986, as amended.

 

11.8         “Company”
means I-Mab 天境生物, an exempted company
incorporated under the Laws of the Cayman Islands, or any successor thereto.

 

    	 	10 / 12
	 

     

    

 

11.9         “Consultant”
means any consultant or adviser if: (a) the consultant or adviser renders bona fide services to the Company; (b) the services
rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction and
do not directly or indirectly promote or maintain a market for the Company’s securities; and (c) the consultant or adviser
is a natural person who has contracted directly with the Service Recipient to render such services. For the avoidance of doubt, each member
of the scientific advisory board of the Company is a Consultant.

 

		11.10	“Director” means a member of the Board.

 

11.11       “Dividend
Equivalents” shall have the meaning of Section 1.409A-3(e) of the U.S. Department of Treasury guidance.

 

11.12       “Employee”
means any person, including, without limitation, officers and Directors, employed by the Company or any parent or subsidiary of the Company.

 

11.13       “Exchange
Act” means the U.S. Securities Exchange Act of 1934, as amended.

 

11.14       “Fair
Market Value” means, as of any date, the value of Ordinary Share determined as follows:

 

(a)          If the Ordinary Shares
are listed on one or more established stock exchanges or national market systems, including without limitation, the New York Stock Exchange
or the NASDAQ Stock Market, its Fair Market Value shall be the closing sales price for such shares (or the closing bid, if no sales were
reported) as quoted on the principal exchange or system on which the Ordinary Shares are listed (as determined by the Administrator) on
the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading
date such closing sales price or closing bid was reported), as reported on the website maintained by such exchange or market system or
such other source as the Administrator deems reliable; or

 

(b)         In the absence of an established market
for the Ordinary Shares of the type described in (a) above, the Fair Market Value thereof shall be determined by the Administrator
in good faith and in its discretion by reference to (i) the placing price of the latest private placement of the Ordinary Shares
and the development of the Company’s business operations and the general economic and market conditions since such latest private
placement, (ii) other third party transactions involving the Ordinary Shares and the development of the Company’s business
operation and the general economic and market conditions since such transaction, (iii) an independent valuation of the Ordinary Shares,
or (iv) such other methodologies or information as the Administrator determines to be indicative of Fair Market Value.

 

		11.15	“Grant Date” means the date as set forth in the Award Agreement.

 

11.16       “Incentive
Stock Option” or “ISO” means an Option that is intended to meet the requirements of Section 422
of the Code or any successor provision thereto.

 

11.17       “Non-Qualified
Stock Options” means an Option that is not intended to be an Incentive Stock Option.

 

11.18       “Option”
means an option to purchase Ordinary Shares. An Option may be either an Incentive Stok Option or a Non-Qualified Stock Option.

 

		11.19	“Ordinary Shares” means the ordinary shares par value US$0.0001 each of the
Company.

 

11.20       “Other
Share-Based Awards” means other Awards of Ordinary Shares, and other Awards that are valued in whole or in part by reference
to, or are otherwise based on, Ordinary Shares or other property.

 

    	 	11 / 12
	 

     

    

 

		11.21	“Parent” means a parent corporation under Section 424(e) of the Code.

 

		11.22	“Participant” means a Service Provider who has been granted an Award under the
Plan.

 

11.23       “Performance
Conditions” means the criteria and objectives, as established by the Board, which shall be satisfied or met to measure the
grant or exercisability of all or a portion of an Restricted Share Unit during the applicable period under this Plan. In the sole discretion
of the Board, the Board may amend or adjust the Performance Conditions or other terms and conditions of an outstanding award in recognition
of any adjustment events.

 

11.24       “Related
Entity” means any business, corporation, partnership, limited liability company or other entity in which the Company, a
Parent or Subsidiary of the Company holds a substantial ownership interest, directly or indirectly, or controls through contractual arrangements
and consolidates the financial results according to applicable accounting standards, but which is not a Subsidiary and which the Board
designates as a Related Entity for purposes of the Plan.

 

11.25       “Restricted
Share” means an Ordinary Share awarded to a Participant as determined by the Administrator that is subject to certain restrictions
and may be subject to risk of forfeiture/repurchase.

 

11.26       “Restricted
Share Unit” means an unfunded, unsecured right to receive, on the applicable settlement date, one Ordinary Share or an amount
in cash or other consideration determined by the Administrator equal to the value thereof as of such payment date, which right may be
subject to certain vesting conditions and other restrictions.

 

11.27       “Securities
Act” means the U.S. Securities Act of 1933, as amended.

 

11.28       “Service
Provider” means an Employee, Consultant, Director or other service providers that the Administrator deems appropriate.

 

11.29       “Subsidiary”
means any corporation or other entity of which a majority of the outstanding voting shares or voting power is beneficially owned directly
or indirectly by the Company.

 

* * *

 

    	 	12 / 12Document

Exhibit 10.1

Applied Blockchain, Inc.
2022 Incentive Plan
(Effective January 20, 2022)

4820-2836-8637v.3

TABLE OF CONTENTS                                       PAGE

						
	Article 1.    Establishment, Purpose, and Duration
	1

	Article 2.    Definitions
	1

	Article 3.    Administration
	6

	Article 4.    Shares Subject to this Plan and Maximum Awards
	7

	Article 5.    Eligibility and Participation
	8

	Article 6.    Stock Options
	10

	Article 7.    Stock Appreciation Rights
	11

	Article 8.    Restricted Stock and Restricted Stock Units
	12

	Article 9.    Performance Units/Performance Shares
	13

	Article 10.    Cash-Based Awards and Other Stock-Based Awards
	14

	Article 11.    Transferability of Awards
	15

	Article 12.    Performance Measures
	16

	Article 13.    Minimum Vesting of Share-Based Awards
	16

	Article 14.    Dividend Equivalents
	16

	Article 15.    Beneficiary Designation
	16

	Article 16.    Rights of Participants
	17

	Article 17.    Change of Control
	18

	Article 18.    Amendment, Modification, Suspension, and Termination
	19

	Article 19.    Withholding
	19

	Article 20.    Successors
	20

	Article 21.    General Provisions
	22

4820-2836-8637v.3        i

Applied Blockchain, Inc.
2022 Incentive Plan
Article 1.Establishment, Purpose, and Duration
1.1Establishment.  Applied Blockchain, Inc. (the “Company”) establishes an incentive compensation plan to be known as the Applied Blockchain, Inc. 2022 Incentive Plan (this “Plan”), as set forth in this document.
This Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards, and Other Stock-Based Awards.
This Plan’s effective date is the date this Plan is approved by the Company’s shareholders (the “Effective Date”), and this Plan shall remain in effect as provided in Section 1.3 hereof.
1.2Purpose of this Plan.  The purpose of this Plan is to provide a means whereby Employees and certain Third Party Service Providers develop a sense of proprietorship and personal involvement in the development and financial success of the Company, and to encourage them to devote their best efforts to the business of the Company, thereby advancing the interests of the Company and its shareholders.  A further purpose of this Plan is to provide a means through which the Company may attract able individuals to become Employees and Third Party Service Providers and to provide a means whereby those individuals upon whom the responsibilities of the successful administration and management of the Company are of importance, can acquire and maintain stock ownership, thereby strengthening their concern for the welfare of the Company.
1.3Duration of this Plan.  Unless sooner terminated as provided herein, this Plan shall terminate ten (10) years from the Effective Date.  After this Plan is terminated, no Awards may be granted but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions and this Plan’s terms and conditions.  Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten (10) years after the earlier of (a) adoption of this Plan by the Board, or (b) the Effective Date.

Article 2.Definitions
Whenever used in this Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall be capitalized.
2.1“Affiliate” shall mean any corporation or other entity (including, but not limited to, a partnership or a limited liability company), that is affiliated with the Company through stock or equity ownership or otherwise, and is designated as an Affiliate for purposes of this Plan by the Committee.
2.2 “Award” means, individually or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive Stock Options, SARs, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards, or Other Stock-Based Awards, in each case subject to the terms of this Plan.
2.3“Award Agreement” means either (i) a written agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award granted under this Plan, or (ii) a written or electronic statement issued by 

4820-2836-8637v.3    1

the Company to a Participant describing the terms and provisions of such Award, including any amendment or modification thereof.  The Committee may provide for the use of electronic, internet or other non-paper Award Agreements, and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by a Participant.
2.4“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.
2.5“Board” or “Board of Directors” means the Board of Directors of the Company.
2.6“Cash-Based Award” means an Award, denominated in cash, granted to a Participant as described in Article 10.
2.7“Cause” means, unless otherwise specified in an Award Agreement or in an applicable employment agreement or similar agreement between the Company and a Participant, with respect to any Participant, as determined by the Committee in its sole discretion:
(a)willful refusal to follow the lawful directions of the Company or an Employee’s supervisor, which directions are consistent with normal business practice;
(b)indictment or conviction of, or plea of nolo contendere to, (i) any felony, or (ii) another crime involving dishonesty or moral turpitude, or Participant’s engaging in any embezzlement, financial misappropriation or fraud, related to their employment with, or provision of services to, the Company or any Subsidiary or Affiliate;
(c)engaging in any willful misconduct or gross negligence or willful act of dishonesty, including any violation of federal securities laws, or violence or threat of violence, which is materially injurious to the Company or any Subsidiary or Affiliate;
(d)repeated abuse of alcohol or drugs (legal or illegal) that, in the Company’s reasonable judgment, materially impairs Participant’s ability to perform their duties; or
(e)willful and knowing breach or violation of any material provision of their employment or agreement to provide services to the Company, including, but not limited to, any applicable confidentiality, non-solicitation and non- competition requirements thereof.
2.8“Change of Control” means the occurrence of any of the following events:
(i)Any Person, other than (x) a fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary or Affiliate, or (y) any corporation owned, directly or indirectly, by shareholders of the Company in substantially the same proportions as their ownership of the Company’s Shares becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company's then outstanding voting securities;

4820-2836-8637v.3    2

(ii)the sale of disposition by the Company of all or substantially all of the Company’s assets;
(iii)the members of the Board of Directors as of the Effective Date (the “Incumbent Directors”) and any successor director whose appointment is endorsed by the Incumbent Directors or any such duly-endorsed successor director cease to constitute a majority of the Board; or
(iv)a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.
2.9“Code” means the U.S.  Internal Revenue Code of 1986, as amended from time to time.  For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision.
2.10“Committee” means the Compensation Committee of the Board or a subcommittee thereof, or any other committee designated by the Board to administer this Plan.  The members of the Committee shall (i) be appointed from time to time by and shall serve at the discretion of the Board, and (ii) shall consist of “non-employee directors” as defined in Section 16 of the Exchange Act.  If the Committee does not exist or cannot function for any reason, the Board may take any action under this Plan that would otherwise be the responsibility of the Committee.
2.11“Company” or “Corporation” means Applied Blockchain, Inc. and any successor thereto as provided in Article 20 herein.  
2.12“Effective Date” has the meaning set forth in Section 1.1.
2.13“Employee” means any individual performing services for the Company, an Affiliate, or a Subsidiary and designated as an employee of the Company, its Affiliates, and/or its Subsidiaries on the payroll records thereof.  An Employee shall not include any individual during any period they are classified or treated by the Company, Affiliate, and/or Subsidiary as an independent contractor, a consultant, or any employee of an employment, consulting, or temporary agency or any other entity other than the Company, Affiliate, and/or Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently retroactively reclassified as a common-law employee of the Company, Affiliate, and/or Subsidiary during such period. 
2.14“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.
2.15“Fair Market Value” means, on any given date, the closing price of a Share as reported by The Trading Market on such date, or if Shares were not traded on The 

4820-2836-8637v.3    3

Trading Market on such day, then on the next preceding day that Shares were traded on The Trading Market; in the event Shares are traded only on an exchange other than The Trading Market, references herein to The Trading Market shall mean such other exchange.  The Company may use an alternate method of determining the value of Shares for accounting or any other purpose.  
2.16“Good Reason” means, unless otherwise specified in an Award Agreement or in an applicable severance compensation or other employment-type or service agreement between the Company and a Participant, with respect to any Participant, as determined by the Committee in its sole discretion:
(a)    a 10% or more diminution in Participant’s base salary as in effect on the last day of the immediately preceding calendar year or a 30% or greater reduction in the amount of Participant’s target cash bonus as compared to the cash bonus amount for the preceding year, provided, however, that a Company-wide compensation program, as determined by the Company, shall not constitute an event under this subparagraph (a);
(b)    a material diminution in Participant’s title, or the nature or scope of Participant’s authority, duties, or responsibilities from those applicable to Participant immediately prior to the Change in Control; or
(c)    the Company’s requiring Participant to be based at any office or location that is more than 25 miles from Participant’s principal place of employment prior to such change in location.
In order for one of the events set forth in (a), (b), or (c) to constitute a Good Reason, (x) Participant must notify the Company in writing of such fact and the reasons therefor no later than 90 days after Participant knows or should have known that the relevant event has occurred, (y) such grounds for termination (if susceptible to correction) are not corrected by the Company within thirty (30) days after Participant’s notice (or, in the event that such grounds cannot be corrected with thirty (30) days, the Company has not taken all reasonable steps within such thirty-day (30) period to correct such grounds as promptly as practicable thereafter); and (z) Participant terminates Participant’s employment with the Company within thirty (30) days following expiration of such thirty-day (30) period. Failure to satisfy the requirements of this paragraph will result in there not being a termination for Good Reason for purposes of this Plan. 
2.17“Grant Date” means the date an Award is granted to a Participant pursuant to this Plan.
2.18“Grant Price” means the price established at the time of grant of an SAR pursuant to Article 7, used to determine whether there is any payment due upon exercise of the SAR.
2.19“Incentive Stock Option” or “ISO” means an Option to purchase Shares granted under Article 6 to an Employee and that is designated as an Incentive Stock Option and that is intended to meet the requirements of Code Section 422, or any successor provision.

4820-2836-8637v.3    4

2.20“Insider” shall mean an individual who is, on the relevant date, an officer, or director of the Company, or a more than ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Board in accordance with Section 16 of the Exchange Act.
2.21“Nonqualified Stock Option” or “NQSO” means an Option that is not intended to meet the requirements of Code Section 422, or that otherwise does not meet such requirements.
2.22“Option” means an Incentive Stock Option or a Nonqualified Stock Option, as described in Article 6.
2.23“Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option.
2.24“Other Stock-Based Award” means an equity-based or equity-related Award not otherwise described by the terms of this Plan, granted pursuant to Article 10.
2.25“Participant” means any eligible individual as set forth in Article 5 to whom an Award is granted.
2.26“Performance-Based Compensation” means compensation under an Award that is subject to performance-based vesting, earning or payment conditions.
2.27“Performance Measures” means measures as described in Article 12 on which the performance goals are based.
2.28“Performance Period” means the period of time during which the performance goals must be met in order to determine the amount and/or vesting, earning or payment of an Award.
2.29“Performance Share” means an Award under Article 9 herein and subject to the terms of this Plan, denominated in Shares, the value of which at the time it is payable is determined by the extent to which the applicable Performance Measures have been achieved.
2.30“Performance Unit” means an Award under Article 9 herein and subject to the terms of this Plan, denominated in units, the value of which at the time it is payable is determined by the extent to which the applicable Performance Measures have been achieved.
2.31“Period of Restriction” means the period when Restricted Stock or Restricted Stock Units are subject to a substantial risk of forfeiture (based on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, in its discretion), as provided in Article 8.
2.32“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.
2.33“Plan” means this Applied Blockchain, Inc. 2022 Incentive Plan.

4820-2836-8637v.3    5

2.34“Restricted Stock” means an Award granted to a Participant pursuant to Article 8.
2.35“Restricted Stock Unit” means an Award granted to a Participant pursuant to Article 8, except no Shares are actually awarded to the Participant on the Grant Date.
2.36“Share” means a share of common stock of the Company.
2.37“Stock Appreciation Right” or “SAR” means an Award, designated as an SAR, pursuant to the terms of Article 7 herein.
2.38“Subsidiary” means any corporation or other entity, whether domestic or foreign, in which the Company has or obtains, directly or indirectly, a proprietary interest of more than fifty percent (50%) by reason of stock ownership or otherwise.
2.39“Third Party Service Provider” means any consultant, agent, advisor, or independent contractor who renders services to the Company, a Subsidiary, or an Affiliate that (a) are not in connection with the offer and sale of Company’s securities in a capital raising transaction, and (b) do not directly or indirectly promote or maintain a market for the Company’s securities.  Individuals who otherwise meet the definition of a Third Party Service Provider under this Section 2.39, and who also serve as a non-employee director of the Company, Subsidiary, or an Affiliate, shall be eligible for participation under this Plan, but only with respect to the services they provide to the Company  as a Third Party Service Provider.  
2.40“The Trading Market” means, initially, OTC Markets (including OTCQX, OTCQB and Pink Markets), or any of the following other markets that becomes the primary trading market for the Shares: The Nasdaq Capital Market, The Nasdaq Global Market, The Nasdaq Global Select Market, the New York Stock Exchange or the NYSE American (or any nationally recognized successor to any of the foregoing).

Article 3.Administration
3.1General.  The Committee shall be responsible for administering this Plan, subject to this Article 3 and the other provisions of this Plan.  The Committee may employ attorneys, consultants, accountants, agents, and other individuals, any of whom may be an Employee, and the Committee, the Company, and its officers and directors shall be entitled to rely upon the advice, opinions, or valuations of any such individuals.  All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Participants, the Company, and all other interested individuals.
3.2Authority of the Committee.  The Committee shall have full and exclusive discretionary power to interpret the terms and the intent of this Plan and any Award Agreement or other agreement or document ancillary to or in connection with this Plan, to determine eligibility for Awards and to adopt such rules, regulations, forms, instruments, and guidelines for administering this Plan as the Committee may deem necessary or proper.  Such authority shall include, but not be limited to, selecting Award recipients, establishing all Award terms and conditions, including the terms and conditions set forth in Award Agreements, granting Awards as an alternative to or as the form of payment for grants or rights earned or due under compensation plans or arrangements of the Company, construing any ambiguous provision of 

4820-2836-8637v.3    6

this Plan or any Award Agreement, and, subject to Article 18, adopting modifications and amendments to this Plan or any Award Agreement, including without limitation, any that are necessary to comply with the laws of the countries and other jurisdictions in which the Company, its Affiliates, and/or its Subsidiaries operate.
3.3Delegation.  The Committee may delegate to one or more of its members or to one or more officers of the Company, and/or its Subsidiaries and Affiliates or to one or more agents or advisors such administrative duties or powers as it may deem advisable, and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render advice with respect to any responsibility the Committee or such individuals may have under this Plan.  The Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as can the Committee: (a) designate Employees to be recipients of Awards and (b) determine the size of any such Awards; provided, however, (i) the Committee shall not delegate such responsibilities to any such officer for Awards granted to an Employee who is considered an Insider; (ii) the resolution providing such authorization sets forth the total number of Awards such officer(s) may grant; and (iii) the officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority delegated.

Article 4.Shares Subject to this Plan and Maximum Awards
4.1Number of Shares Available for Awards and Maximum Amount of
Non-Share Awards.
Subject to adjustment as provided in Section 4.3:
(a)    The maximum number of Shares available for issuance to Participants under this Plan is 80,000,000 Shares.
(b)    The maximum aggregate number of Shares that may be issued in the aggregate pursuant to the exercise of Incentive Stock Options (“ISOs”) is 80,000,000 Shares.  
(c)    The aggregate number of Shares reserved for Awards under Section 4.1(a) and permitted to be granted as ISOs under Section 4.1(b) will automatically increase on January 1 of each year beginning with January 1, 2023, for a period of not more than nine (9) years, ending on (and including) January 1, 2031, by an amount equal to three percent (3%) of the total number of shares of Common Stock outstanding on December 31 of the preceding calendar year. Notwithstanding the foregoing, the Board may act prior to January 1 of a given year to provide that there will be no January 1 increase for such year or that the increase for such year will be a lesser number of Shares than provided herein.
4.2Share Usage.  Shares covered by an Award shall only be counted as used to the extent they are actually issued.  The number of Shares available for Awards under this Plan shall be reduced by one Share for each Share covered by such Award or to which such Award relates.  Awards that do not entitle the holder thereof to receive or purchase Shares shall not be counted against the aggregate number of Shares available for Awards under this Plan.  In addition, any Shares related to Awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares shall be available again for grant under this Plan.  In no event, however, will the following Shares again become available for Awards or increase the number of Shares available for grant under this Plan:  (i) Shares tendered by the Participant in payment of the exercise price of an Option; (ii) Shares withheld from exercised Awards for tax 

4820-2836-8637v.3    7

withholding purposes; (iii) Shares subject to a SAR that are not issued in connection with the settlement of that SAR; and (iv) Shares repurchased by the Company with proceeds received from the exercise of an Option.  The Shares available for issuance under this Plan may consist, in whole or in part, of authorized and unissued Shares, treasury Shares, or Shares reacquired by the Company in any manner.  
4.3Adjustments in Authorized Shares.  In the event of any corporate event or transaction (including, but not limited to, a change in the Shares of the Company or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation, stock dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or property of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change in capital structure, number of outstanding Shares or distribution (other than normal cash dividends) to shareholders of the Company, or any similar corporate event or transaction, the Committee, in its sole discretion, in order to prevent dilution or enlargement of Participants’ rights under this Plan, shall substitute or adjust, as applicable, the number and kind of Shares that may be issued under this Plan or under particular forms of Awards, the number and kind of Shares subject to outstanding Awards, the Option Price or Grant Price applicable to outstanding Awards, and other value determinations applicable to outstanding Awards.
The Committee, in its sole discretion, may also make appropriate adjustments in the terms of any Awards under this Plan to reflect or relate to such changes or distributions and to modify any other terms of outstanding Awards, including modifications of performance goals and changes in the length of Performance Periods.  The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this Plan.
Subject to the provisions of Article 18 and notwithstanding anything else herein to the contrary, without affecting the number of Shares reserved or available hereunder, the Committee may authorize the issuance or assumption of benefits under this Plan in connection with any merger, consolidation, acquisition of property or stock, or reorganization upon such terms and conditions as it may deem appropriate (including, but not limited to, a conversion of equity awards into Awards under this Plan in a manner consistent with paragraph 53 of FASB Interpretation No.  44), subject to compliance with the rules under Code Sections 422 and 424, as and where applicable.

Article 5.Eligibility and Participation
5.1Eligibility.  Individuals eligible to participate in this Plan include all Employees and Third Party Service Providers.
5.2Actual Participation.  Subject to the provisions of this Plan, the Committee may, from time to time, select from all eligible individuals, those individuals to whom Awards shall be granted and shall determine, in its sole discretion, the nature of any and all terms permissible by law, and the amount of each Award.
Article 6.Stock Options
6.1Grant of Options.  Subject to the terms and provisions of this Plan, Options may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee, in its sole discretion; provided that ISOs may be granted only to Employees of the Company, a parent, or Subsidiary (as permitted under Code Sections 422 and 424).

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6.2Award Agreement.  Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the maximum duration of the Option, the number of Shares to which the Option pertains, the conditions upon which an Option shall become vested and exercisable, and such other provisions as the Committee shall determine which are not inconsistent with the terms of this Plan.  The Award Agreement also shall specify whether the Option is intended to be an ISO or a NQSO.
6.3Option Price.  The Option Price for each grant of an Option under this Plan shall be determined by the Committee in its sole discretion and shall be specified in the Award Agreement; provided, however, the Option Price must be at least equal to one hundred percent (100%) of the Fair Market Value of the Shares as determined on the Grant Date.
6.4Term of Options.  Each Option granted to a Participant shall expire at such time as the Committee shall determine at the time of grant; provided, however, no Option shall be exercisable later than the day before the tenth (10th) anniversary date of its grant.  Notwithstanding the foregoing, for Nonqualified Stock Options granted to Participants outside the United States, the Committee has the authority to grant Nonqualified Stock Options that have a term greater than ten (10) years.
6.5Exercise of Options.  Subject to Article 13, Options granted under this Article 6 shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant.
6.6Payment.  Options granted under this Article 6 shall be exercised by the delivery of a notice of exercise to the Company or an agent designated by the Company in a form specified or accepted by the Committee, or by complying with any alternative procedures which may be authorized by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares.
A condition of the issuance of the Shares as to which an Option shall be exercised shall be the payment of the Option Price.  The Option Price of any Option shall be payable to the Company in full either: (a) in cash or its equivalent; (b) by tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the Option Price; (c) by a cashless (broker-assisted) exercise; (d) by a combination of (a), (b) and/or (c); or (e) any other method approved or accepted by the Committee in its sole discretion.
Subject to any governing rules or regulations, as soon as practicable after receipt of written notification of exercise and full payment (including satisfaction of any applicable tax withholding), the Company shall deliver to the Participant evidence of book entry Shares, or upon the Participant’s request, Share certificates in an appropriate amount based upon the number of Shares purchased under the Option(s).
Unless otherwise determined by the Committee, all payments under all of the methods indicated above shall be paid in United States dollars.
6.7Restrictions on Share Transferability.  The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, under the requirements of any 

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stock exchange or market upon which such Shares are then listed and/or traded, or under any blue sky or state securities laws applicable to such Shares.
6.8Termination of Employment.  Each Participant’s Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option following termination of the Participant’s employment or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Options issued pursuant to this Article 6, and may reflect distinctions based on the reasons for termination.
6.9Notification of Disqualifying Disposition.  If any Participant shall make any disposition of Shares issued pursuant to the exercise of an ISO under the circumstances described in Code Section 421(b) (relating to certain disqualifying dispositions), such Participant shall notify the Company of such disposition within ten (10) days thereof.

Article 7.Stock Appreciation Rights
7.1Grant of SARs.  Subject to the terms and conditions of this Plan, SARs may be granted to Participants at any time and from time to time as shall be determined by the Committee
Subject to the terms and conditions of this Plan, the Committee shall have complete discretion in determining the number of SARs granted to each Participant and, consistent with the provisions of this Plan, in determining the terms and conditions pertaining to such SARs.
The Grant Price for each grant of an SAR shall be determined by the Committee and shall be specified in the Award Agreement; provided, however, the Grant Price on the Grant Date must be at least equal to one hundred percent (100%) of the Fair Market Value of the Shares as determined on the Grant Date.
7.2SAR Agreement.  Each SAR Award shall be evidenced by an Award Agreement that shall specify the Grant Price, the term of the SAR, and such other provisions as the Committee shall determine.
7.3Term of SAR.  The term of an SAR granted under this Plan shall be determined by the Committee, in its sole discretion, and except as determined otherwise by the Committee and specified in the SAR Award Agreement, no SAR shall be exercisable later than the tenth (10th) anniversary date of its grant.  Notwithstanding the foregoing, for SARs granted to Participants outside the United States, the Committee has the authority to grant SARs that have a term greater than ten (10) years.
7.4Exercise of SARs.  SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion, imposes.
7.5Settlement of SARs.  Upon the exercise of an SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying:
(a)The excess of the Fair Market Value of a Share on the date of exercise over the Grant Price; by
(b)The number of Shares with respect to which the SAR is exercised.

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At the discretion of the Committee, the payment upon SAR exercise may be in cash, Shares, or any combination thereof, or in any other manner approved by the Committee in its sole discretion.  The Committee’s determination regarding the form of SAR payout shall be set forth in the Award Agreement pertaining to the grant of the SAR.
7.6Termination of Employment.  Each Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the SAR following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with Participants, need not be uniform among all SARs issued pursuant to this Plan, and may reflect distinctions based on the reasons for termination.
7.7Other Restrictions.  The Committee shall impose such other conditions and/or restrictions on any Shares received upon exercise of an SAR granted pursuant to this Plan as it may deem advisable or desirable.  These restrictions may include, but shall not be limited to, a requirement that the Participant hold the Shares received upon exercise of an SAR for a specified period of time.

Article 8.Restricted Stock and Restricted Stock Units
8.1Grant of Restricted Stock or Restricted Stock Units.  Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the Committee shall determine.  Restricted Stock Units shall be similar to Restricted Stock except that no Shares are actually awarded to the Participant on the Grant Date.
8.2Restricted Stock or Restricted Stock Unit Agreement.  Each Restricted Stock and/or Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine.
8.3Other Restrictions.  The Committee shall impose such other conditions and/or restrictions on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to this Plan as it may deem advisable including, without limitation,  restrictions based upon the achievement of specific performance goals, time-based restrictions on vesting following the attainment of the performance goals, time-based restrictions, and/or restrictions under applicable laws or under the requirements of any stock exchange or market upon which such Shares are listed or traded, or holding requirements or sale restrictions placed on the Shares by the Company upon vesting of such Restricted Stock or Restricted Stock Units.
To the extent deemed appropriate by the Committee, the Company may retain the certificates representing Shares of Restricted Stock in the Company’s possession until such time as all conditions and/or restrictions applicable to such Shares have been satisfied or lapse.
Except as otherwise provided in this Article 8, Shares of Restricted Stock covered by each Restricted Stock Award shall become freely transferable by the Participant after all conditions and restrictions applicable to such Shares have been satisfied or lapse (including satisfaction of any applicable tax withholding obligations), and Restricted Stock Units shall be paid in cash, Shares, or a combination of cash and Shares as the Committee, in its sole discretion shall determine.

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8.4Certificate Legend.  In addition to any legends placed on certificates pursuant to Section 8.3, each certificate representing Shares of Restricted Stock granted pursuant to this Plan may bear a legend such as the following or as otherwise determined by the Committee in its sole discretion:
The sale or transfer of Shares of stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the Applied Blockchain, Inc. 2022 Incentive Plan, and in the associated Award Agreement.  A copy of this Plan and such Award Agreement may be obtained from Applied Blockchain, Inc..
8.5Voting Rights.  Unless otherwise determined by the Committee and set forth in a Participant’s Award Agreement, to the extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock granted hereunder may be granted the right to exercise full voting rights with respect to those Shares during the Period of Restriction.  A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder.
8.6Termination of Employment.  Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Restricted Stock and/or Restricted Stock Units following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Shares of Restricted Stock or Restricted Stock Units issued pursuant to this Plan, and may reflect distinctions based on the reasons for termination.
8.7Section 83(b) Election.  The Committee may provide in an Award Agreement that the Award of Restricted Stock is conditioned upon the Participant making or refraining from making an election with respect to the Award under Code Section 83(b).  If a Participant makes an election pursuant to Code Section 83(b) concerning a Restricted Stock Award, the Participant shall be required to file promptly a copy of such election with the Company.

Article 9.Performance Units/Performance Shares
9.1Grant of Performance Units/Performance Shares.  Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may grant Performance Units and/or Performance Shares to Participants in such amounts and upon such terms as the Committee shall determine.  Performance Units and Performance Shares that are earned (as described in Section 9.3) may be subject to vesting requirements as set forth in the applicable Award Agreement.  
9.2Value of Performance Units/Performance Shares.  Each Performance Unit shall have an initial value that is established by the Committee at the time of grant.  Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the Grant Date.  The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine the value and/or number of Performance Units/Performance Shares that may be earned by the Participant.
9.3Earning of Performance Units/Performance Shares.  Subject to the terms of this Plan, after the applicable Performance Period and vesting period, if any, have ended, the holder of Performance Units/Performance Shares shall be entitled to receive payout on the value 

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and number of Performance Units/Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance goals have been achieved.
9.4Form and Timing of Payment of Performance Units/Performance Shares.  Payment of earned and vested Performance Units/Performance Shares shall be as determined by the Committee and as evidenced in the Award Agreement.  Subject to the terms of this Plan, the Committee, in its sole discretion, may pay earned and vested Performance Units/Performance Shares in the form of cash or in Shares (or in a combination thereof).  Any Shares may be granted subject to any restrictions deemed appropriate by the Committee.  The determination of the Committee with respect to the form of payout of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award.
9.5Termination of Employment.  Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Performance Units and/or Performance Shares following termination of the Participant’s employment with, or performance of services to, the Company, its Affiliates, and/or its Subsidiaries, as the case may be.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Awards of Performance Units or Performance Shares issued pursuant to this Plan, and may reflect distinctions based on the reasons for termination.

Article 10.Cash-Based Awards and Other Stock-Based Awards
10.1Grant of Cash-Based Awards.  Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may grant Cash-Based Awards to Participants in such amounts and upon such terms as the Committee may determine.
10.2Other Stock-Based Awards.  The Committee may grant other types of equity-based or equity-related Awards not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted Shares) in such amounts and subject to such terms and conditions, as the Committee shall determine.  Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares and may include, without limitation, Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States.
10.3Value of Cash-Based and Other Stock-Based Awards.  Each Cash-Based Award shall specify a payment amount or payment range as determined by the Committee.  Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares, as determined by the Committee.  The Committee may establish performance goals in its discretion.  If the Committee exercises its discretion to establish performance goals, the number and/or value of Cash-Based Awards or Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to which the performance goals are met.
10.4Payment of Cash-Based Awards and Other Stock-Based Awards.  Payment, if any, with respect to a Cash-Based Award or an Other Stock-Based Award shall be made in accordance with the terms of the Award, in cash or Shares as the Committee determines.
10.5Termination of Employment.  The Committee shall determine the extent to which the Participant shall have the right to receive Cash-Based Awards or Other Stock-Based Awards following termination of the Participant’s employment with, or provision of services to, the Company, its Affiliates, and/or its Subsidiaries, as the case may be.  Such provisions shall be determined in the sole discretion of the Committee, such provisions may be included in an 

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agreement entered into with each Participant, but need not be uniform among all Awards of Cash-Based Awards or Other Stock-Based Awards issued pursuant to this Plan, and may reflect distinctions based on the reasons for termination.

Article 11.Transferability of Awards
11.1Transferability.  Except as provided in Section 11.2 below, during a Participant’s lifetime, their Awards shall be exercisable only by the Participant.  Awards shall not be transferable other than by will or the laws of descent and distribution; no Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind; and any purported transfer in violation hereof shall be null and void.  The Committee may establish such procedures as it deems appropriate for a Participant to designate a beneficiary to whom any amounts payable or Shares deliverable in the event of, or following, the Participant’s death, may be provided.
11.2Committee Action.  The Committee may, in its discretion, determine that notwithstanding Section 11.1, any or all Awards (other than ISOs) shall be transferable to and exercisable by such transferees, and subject to such terms and conditions, as the Committee may deem appropriate; provided, however, no Award may be transferred for value (as defined in the General Instructions to Form S-8).
Article 12.Performance Measures
12.1Performance Measures.  The performance goals upon which the payment or vesting of an Award depends may include, without limitation, the following Performance Measures:
(a)Net earnings or Net Income (before or after taxes);
(b)Earnings per share (basic or diluted);
(c)Net sales or revenue growth;
(d)Net operating profit;
(e)Return measures (including, but not limited to, return on assets, capital, invested capital, equity, sales, or revenue);
(f)Cash flow (including, but not limited to, throughput, operating cash flow, free cash flow, cash flow return on equity, and cash flow return on investment);
(g)Earnings before or after taxes, interest, depreciation, and/or amortization;
(h)    Earnings before taxes;
(i)    Gross or operating margins;
(j)    Corporate value measures;
(k)    Capital expenditures;
(l)    Unit volumes;

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(m)    Productivity ratios;
(n)    Share price (including, but not limited to, growth measures and total shareholder return);
(o)    Cost or expense;
(p)    Margins (including, but not limited to, debt or profit);
(q)    Operating efficiency;
(r)    Market share;
(s)    Customer satisfaction;
(t)    Working capital targets or any element thereof;
(u)    Economic value added or EVA® (net operating profit after tax minus the sum of capital multiplied by the cost of capital);
(v)    Health, safety and environmental performance;
(w)    Corporate advocacy metrics; 
(x)    Strategic milestones (including, but not limited to, debt reduction, improvement of cost of debt, equity or capital, completion of projects, achievement of synergies or integration objectives, or improvements to credit rating, inventory turnover, weighted average cost of capital, implementation of significant new processes, productivity or production, product quality, and any combination of the foregoing);  
(y)    Strategic sustainability metrics (including, but not limited to, corporate governance, enterprise risk management, employee development, and portfolio restructuring); and
(z)    Stockholder equity or net worth.
Any one or more Performance Measure(s) may be used to measure the performance of any Participant, the Company, Subsidiary, and/or Affiliate as a whole or any business unit or line of business of the Company, Subsidiary, and/or Affiliate or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Measures on an absolute, gross, total, net per share, average, adjusted or relative basis (or measure based on changes therein), including, as compared to the performance of a group of comparator companies, or published or special index that the Committee, in its sole discretion, deems appropriate, or the Company may select Performance Measure (n) above as compared to various stock market indices.  The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Article 12.

12.2Evaluation of Performance.  The Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occurs during a Performance Period: (a) asset write-downs, (b) litigation or claim judgments or 

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settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) extraordinary nonrecurring items as described 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, (f) acquisitions or divestitures, and (g) foreign exchange gains and losses.
12.3Adjustment of Performance-Based Compensation.  The Committee shall retain the discretion to adjust such Awards upward or downward, either on a formula or discretionary basis or any combination, as the Committee determines.

Article 13.Minimum Vesting of Share-Based Awards
Notwithstanding any other provision of this Plan to the contrary, Awards granted pursuant to Article 6, 7, 8, 9 or 10 of this Plan shall be subject to a minimum vesting period of at least one (1) year, provided, however, (a) such vesting may be cliff or graded (starting no earlier than one (1) year after grant), (b) the Committee may provide for earlier vesting as specified in an Award Agreement, and (c) no more than five percent (5%) of the maximum number of Shares authorized for issuance under this Plan pursuant to Section 4.1(a) may be granted with a minimum vesting period of less than one (1) year.

Article 14.Dividend Equivalents
Any Participant selected by the Committee may be granted dividend equivalents based on the dividends declared on Shares that are subject to any Award, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests or expires, as determined by the Committee.  Such dividend equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such limitations as may be determined by the Committee.  Notwithstanding the foregoing, for all Awards, the payment of dividends and dividend equivalents prior to an Award becoming vested shall be prohibited, and the Committee shall determine the extent to which dividends and dividend equivalents may accrue during the vesting period and become payable upon vesting.  

Article 15.Beneficiary Designation
Each Participant under this Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Plan is to be paid in case of their death before they receive any or all of such benefit.  Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee, and will be effective only when filed by the Participant in writing with the Company, or the Company’s designated agent, during the Participant’s lifetime.  In the absence of any such beneficiary designation, benefits remaining unpaid or rights remaining unexercised at the Participant’s death shall be paid to or exercised by the Participant’s executor, administrator, or legal representative on behalf of the Participant’s estate.

Article 16.Rights of Participants
16.1Employment.  Nothing in this Plan or an Award Agreement shall interfere with or limit in any way the right of the Company, its Affiliates, and/or its Subsidiaries, to terminate any Participant’s employment or service to the Company at any time or for any reason not prohibited by law, nor confer upon any Participant any right to continue their employment, or service as a Third Party Service Provider, for any specified period of time.
Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company, its Affiliates, and/or its Subsidiaries and, accordingly, subject to Articles 3 and 18, this Plan and the benefits hereunder may be terminated at any time in the sole 

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and exclusive discretion of the Committee without giving rise to any liability on the part of the Company, its Affiliates or Subsidiaries, or the Committee.
16.2Participation.  No individual shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award.
16.3Rights as a Shareholder.  Except as otherwise provided herein, a Participant shall have none of the rights of a shareholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares.

Article 17.Change of Control
17.1Change of Control of the Company.  Notwithstanding any other provision of this Plan to the contrary, the provisions of this Article 17 shall apply in the event of a Change of Control, unless otherwise determined by the Committee in connection with the grant of an Award as reflected in the applicable Award Agreement or other agreement between the Participant and the Company or a subsidiary or Affiliate.
(a)If, upon a Change of Control, a Participant receives a new Award which qualifies as a “Replacement Award” (as defined below), the Award shall continue subject to the terms of the Replacement Award. 
(b)If, upon a Change of Control that results in the Company’s Shares no longer being traded on The Trading Market or another established securities market and no Replacement Award is granted to a Participant, the unvested portion of an Award whose vesting is based only on a service requirement shall become immediately vested and exercisable, as applicable, upon the Change of Control.
(c)Notwithstanding subparagraph (a) and except as may be otherwise provided in an Award Agreement, upon a Change of Control, with respect to Awards that are Performance Shares or Performance Units issued pursuant to Article 9 of this Plan, a pro-rata portion of the Award shall be immediately earned, vested and payable;  such portion shall be determined based on the portion of the Performance Period that has elapsed as of (i) the date of the Change of Control, if the Performance Measure is based on stock price, or (ii) the end of the last full calendar quarter preceding or commensurate with the date of the Change of Control if the Performance Measure is not based on stock price (in each case, the “Adjusted Measurement Date”).  The Award amount that will be considered earned and payable will be calculated based on the higher of target or actual performance measured as of the Adjusted Measurement Date.  To the extent any earned Awards that are Performance Shares or Performance Units have not been paid prior to the Change of Control because they are subject to vesting, such earned but unvested Awards shall become immediately vested, and payable upon the Change of Control.
(d)Except as provided in subparagraph (c) or as otherwise provided in an Award Agreement, if, following a Change of Control, the Company’s Shares continue to be traded on The Trading Market or another established securities market, outstanding Awards shall continue in effect and be treated as Replacement Awards as described in subparagraph (a).  
(e)Notwithstanding any of subparagraphs (a), (b) or (d) of this Section 17.1, the Committee may, in its sole discretion, determine that any or all outstanding Awards granted under this Plan, whether or not exercisable, will be canceled and terminated, and that in connection with such cancellation and termination, the holder of such Award may receive for each Share of Common Stock subject to such Awards a cash payment (or the delivery of shares of stock, other securities or a combination of cash, stock and securities equivalent to such cash 

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payment) equal to the difference, if any, between the consideration received by shareholders of the Company in respect of a Share of Common Stock in connection with such transaction and the purchase price per share, if any, under the Award multiplied by the number of Shares of Common Stock subject to such Award; provided that if such product is zero or less or to the extent that the Award is not then exercisable, the Awards will be canceled and terminated without payment therefor.
17.2Replacement Awards.  An Award shall be considered a Replacement Award if: (i) it has a value at least equal to the value of the Award it is replacing as determined by the Committee in its sole discretion; (ii) it relates to publicly traded equity securities of the Company or its successor in the Change of Control or another entity that is affiliated with the Company or its successor following the Change of Control; and (iii) its other terms and conditions are not less favorable to the Participant than the terms and conditions of the Award it is replacing (including the provisions that would apply in the event of a subsequent Change of Control).  Without limiting the generality of the foregoing, the Replacement Award may take the form of a continuation of the Award it is replacing if the requirements of the preceding sentence are satisfied.  The determination of whether the conditions of this Section 17.2 are satisfied shall be made by the Committee, as constituted immediately before the Change of Control, in its sole discretion.  
17.3Reduction of Excess Parachute Payments.  Except as may be provided in an employment or severance compensation or other service agreement between the Company and the Participant, if, in connection with a Change of Control, a Participant’s payment of any Awards will cause the Participant to be liable for federal excise tax under Code Section 4999 levied on certain “excess parachute payments” as defined in Code Section 280G (“Excise Tax”), then the payments made pursuant to the Awards shall be reduced (or repaid to the Company, if previously paid or provided) as provided below:
(a)    If the payments due upon of Change of Control under this Plan and any other agreement between a Participant and the Company, exceed 2.99 times the Participant’s “base amount,” as defined in Code Section 280G, a reduced payment amount shall be calculated by reducing the payments to the minimum extent necessary so that no portion of any payment, as so reduced or repaid, constitutes an excess parachute payment.  If it is determined that any Excise Tax is payable by a Participant, the Participant shall receive either (i) all payments otherwise due; or (ii) the reduced payment amount described in the preceding sentence, whichever will provide the Participant with the greater after-tax economic benefit taking into account for these purposes any applicable Excise Tax.
(b)    Whether payments are to be reduced pursuant to this Section 17.3, and the extent to which they are to be so reduced, will be determined solely by the Company in good faith and the Company will notify the Participant in writing of its determination.  
(c)    In no event shall a Participant be entitled to receive any kind of gross-up payment or Excise Tax reimbursement from the Company.

Article 18.Amendment, Modification, Suspension, and Termination
18.1Amendment, Modification, Suspension, and Termination.  Subject to Section 18.3, the Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate this Plan and any Award Agreement in whole or in part; provided, however, that, (i) without the prior approval of the Company’s shareholders and except as provided in Section 4.3, Options or SARs issued under this Plan will not be repriced, repurchased (including a cash buyout), replaced, or regranted through cancellation, or by lowering the Option Price of a 

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previously granted Option or the Grant Price of a previously granted SAR, (ii) any amendment of this Plan must comply with the rules of The Trading Market, and (iii) no material amendment of this Plan shall be made without shareholder approval if shareholder approval is required by law, regulation, or stock exchange rule.
18.2Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.  The Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.3 hereof) affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan.  The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this Plan.
18.3Awards Previously Granted.  Notwithstanding any other provision of this Plan to the contrary (other than Section 18.4), no termination, amendment, suspension, or modification of this Plan or an Award Agreement shall adversely affect in any material way any Award previously granted under this Plan, without the written consent of the Participant holding such Award.
18.4Amendment to Conform to Law.  Notwithstanding any other provision of this Plan to the contrary, the Committee may amend this Plan or an Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming this Plan or an Award Agreement to any present or future law relating to plans of this or similar nature (including, but not limited to, Code Section 409A), and to the administrative regulations and rulings promulgated thereunder.  By accepting an Award under this Plan, a Participant agrees to any amendment made pursuant to this Section 18.4 to any Award granted under this Plan without further consideration or action.

Article 19.Withholding
19.1Tax Withholding.  The Company shall have the power and the right to deduct or withhold from any amounts due and owing to the Participant, or require a Participant to remit to the Company, up to the maximum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan.
19.2Share Withholding.  With respect to withholding required upon the lapse of restrictions on Restricted Stock and Restricted Stock Units, or upon the achievement of performance goals related to Performance Shares, or any other taxable event arising as a result of an Award granted hereunder, the Committee may establish provisions in the applicable Award Agreements to satisfy the withholding requirement, in whole or in part, by having the Company withhold whole Shares having a Fair Market Value on the date the tax is to be determined up to the maximum statutory total tax withholding that could be imposed on the transaction.

Article 20.Successors
All obligations of the Company under this Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, regardless of whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

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Article 21.General Provisions
21.1Forfeiture Events.  Any Awards granted under this Plan will be subject to recoupment in accordance with any clawback policy that the Company currently has in effect, or is required to adopt or modify, pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or the Sarbanes-Oxley Act of 2002, or other applicable law (“Clawback Policy”).  In addition, the Committee or the Board may impose such clawback, recovery or recoupment provisions in an Award Agreement as the Committee or the Board determines necessary or appropriate, including but not limited to a reacquisition right in respect of previously acquired Shares or other cash or property as set forth in the Award Agreement.  No recovery of compensation under this Section will be an event giving rise to a right to resign for “good reason” or “constructive termination” (or similar term) under any agreement or otherwise with the Company.
21.2Legend.  The certificates for Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer of such Shares.
21.3Gender and Number.  Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural.
21.4Severability.  In the event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included.
21.5Requirements of Law.  The granting of Awards and the issuance of Shares under this Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.
21.6Delivery of Title.  The Company shall have no obligation to issue or deliver evidence of title for Shares issued under this Plan prior to:
(a)Obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and
(b)Completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental body that the Company determines to be necessary or advisable.
21.7Inability to Obtain Authority.  The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.
21.8Investment Representations.  The Committee may require any individual receiving Shares pursuant to an Award under this Plan to represent and warrant in writing that the individual is acquiring the Shares for investment and without any present intention to sell or distribute such Shares.

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21.9Employees Based Outside the United States.  Notwithstanding any provision of this Plan to the contrary, in order to comply with the laws in other countries in which the Company, its Affiliates, and/or its Subsidiaries operate or have Employees or Third Party Service Providers, the Committee, in its sole discretion, shall have the power and authority to:
(a)Determine which Affiliates and Subsidiaries shall be covered by this Plan;
(b)Determine which Employees and/or Third Party Service Providers outside the United States are eligible to participate in this Plan;
(c)Modify the terms and conditions of any Award granted to Employees or Third Party Service Providers outside the United States to comply with applicable foreign laws;
(d)Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable.  Any subplans and modifications to Plan terms and procedures established under this Section 21.9 by the Committee shall be attached to this Plan document as appendices; and
(e)Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals.
Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate applicable law.
21.10Uncertificated Shares.  To the extent that this Plan provides for issuance of certificates to reflect the transfer of Shares, the transfer of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange.
21.11Unfunded Plan.  Participants shall have no right, title, or interest whatsoever in or to any investments that the Company, and/or its Subsidiaries, and/or its Affiliates may make to aid it in meeting its obligations under this Plan.  Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other individual.  To the extent that any individual acquires a right to receive payments from the Company, its Subsidiaries, and/or its Affiliates under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company, a Subsidiary, or an Affiliate, as the case may be.  All payments to be made hereunder shall be paid from the general funds of the Company, a Subsidiary, or an Affiliate, as the case may be and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in this Plan.
21.12No Fractional Shares.  No fractional Shares shall be issued or delivered pursuant to this Plan or any Award.  The Committee shall determine whether cash, Awards, or other property shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or otherwise eliminated.
21.13Retirement and Welfare Plans.  Neither Awards made under this Plan nor Shares or cash paid pursuant to such Awards may be included as “compensation” for purposes of 

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computing the benefits payable to any Participant under the Company’s or any Subsidiary’s or Affiliate’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant’s benefit.
21.14Deferred Compensation.  If any Award would be considered deferred compensation as defined under Code Section 409A and if this Plan fails to meet the requirements of Code Section 409A with respect to such Award, then such Award shall be null and void.  However, the Committee may permit deferrals of compensation pursuant to the terms of a Participant’s Award Agreement, a separate plan or a subplan which meets the requirements of Code Section 409A and any related guidance.  Additionally, to the extent any Award is subject to Code Section 409A, notwithstanding any provision herein to the contrary, this Plan does not permit the acceleration or delay of the time or schedule of any distribution related to such Award, except as permitted by Code Section 409A, the regulations thereunder, and/or the Secretary of the United States Treasury.
21.15Nonexclusivity of this Plan.  The adoption of this Plan shall not be construed as creating any limitations on the power of the Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant.
21.16No Constraint on Corporate Action.  Nothing in this Plan shall be construed to: (i) limit, impair, or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (ii) limit the right or power of the Company or a Subsidiary or an Affiliate to take any action which such entity deems to be necessary or appropriate.
21.17Governing Law.  This Plan shall be governed by the laws of the State of Texas, without regard to choice-of-law principles. The Participants consent to personal and exclusive jurisdiction and venue Dallas County in the State of Texas. Any controversy or claim arising out of or relating to (i) a Participant’s employment with the Company or a Subsidiary or Affiliate and/or (ii) the Plan, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association in accordance with its Employment Arbitration Rules before a single arbitrator in Dallas, Texas, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The Company and the Participant will each be responsible for their own attorneys’ fees and expenses incurred in connection with any such arbitration. The decision arrived at by the arbitrator shall be binding upon all parties to the arbitration and no appeal shall lie therefrom, except as provided by the Federal Arbitration Act. These arbitration procedures are intended to be the exclusive method of resolving any claim or dispute arising out of or related to this Plan, including the applicability of this Section; provided, however, that any party seeking injunctive relief in connection with a breach or anticipated breach of the Plan will do so in a state or federal court of competent jurisdiction within Dallas County in the State of Texas.
As evidence of its adoption of this Plan, the Company has caused this document to be executed by its duly authorized officer as of the 20th day of January, 2022.

APPLIED BLOCKCHAIN, INC.
By:  /s/ David Rench         
Name: David Rench
Title: Chief Financial Officer

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