Document:

Exhibit 10.1

 

TELIGENT, INC.

 

2016 EQUITY INCENTIVE PLAN

 

	 	1.	DEFINITIONS.

 

Unless otherwise specified
or unless the context otherwise requires, the following terms, as used in this Teligent, Inc. 2016 Equity Incentive
Plan, have the following meanings:

 

	 	a.	Administrator means the Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means the Committee.

 

	 	b.	Affiliate means a corporation which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.

 

	 	c.	Agreement means an agreement between the Company and a Participant pertaining to a Stock Right delivered pursuant to the Plan in such form as the Administrator shall approve.

 

	 	d.	Board of Directors means the Board of Directors of the Company.

 

	 	e.	Cause means, with respect to a Participant (a) dishonesty with respect to the Company or any Affiliate, (b) insubordination, substantial malfeasance or non-feasance of duty, (c) unauthorized disclosure of confidential information, (d) breach by a Participant of any provision of any employment, consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company or any Affiliate, and (e) conduct substantially prejudicial to the business of the Company or any Affiliate; provided, however, that any provision in an agreement between a Participant and the Company or an Affiliate, which contains a conflicting definition of Cause for termination and which is in effect at the time of such termination, shall supersede this definition with respect to that Participant. The determination of the Administrator as to the existence of Cause will be conclusive on the Participant and the Company.

 

	 	f.	Change of Control means the occurrence of any of the following events:

 

	 	1.	Ownership. Any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “Beneficial Owner” (as defined in Rule 13d-3 under the Exchange Act), 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 (excluding for this purpose any such voting securities held by the Company or its Affiliates or by any employee benefit plan of the Company) pursuant to a transaction or a series of related transactions which the Board of Directors does not approve; or

 

	 	2.	Merger/Sale of Assets. (A) A merger or consolidation of the Company whether or not approved by the Board of Directors, 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 the parent of such corporation) more than 50% of the total voting power represented by the voting securities of the Company or such surviving entity or parent of such corporation, as the case may be, outstanding immediately after such merger or consolidation; or (B) the sale or disposition by the Company of all or substantially all of the Company’s assets in a transaction requiring shareholder approval; or

 

    	 	 	 

     

    

 

	 	3.	Change in Board Composition. A change in the composition of the Board of Directors, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of May 25, 2016, or (B) are elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company);

 

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

 

	 	g.	Code means the United States Internal Revenue Code of 1986, as amended including any successor statute, regulation and guidance thereto.

 

	 	h.	Committee means the committee of the Board of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan the composition of which shall at all times satisfy the provisions of Section 162(m) of the Code.

 

	 	i.	Common Stock means shares of the Company’s common stock, $0.01 par value per share.

 

	 	j.	Company means Teligent, Inc., a Delaware corporation.

 

	 	k.	Consultant means any natural person who is an advisor or consultant that provides bona fide services to the Company or its Affiliates, provided that such services are not in connection with the offer or sale of securities in a capital raising transaction, and do not directly or indirectly promote or maintain a market for the Company’s or its Affiliates’ securities.

 

	 	l.	Disability or Disabled means permanent and total disability as defined in Section 22(e)(3) of the Code.

 

	 	m.	Employee means any employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the Plan.

 

	 	n.	Exchange Act means the Securities Exchange Act of 1934, as amended.

 

	 	o.	Fair Market Value of a Share of Common Stock means:

 

	 	1.	If the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the closing or, if not applicable, the last price of the Common Stock on the composite tape or other comparable reporting system for the trading day on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date;

 

	 	2.	If the Common Stock is not traded on a national securities exchange but is traded on the over-the-counter market, if sales prices are not regularly reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close of trading in the over-the-counter market for the trading day on which Common Stock was traded on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date; and

 

    	 	 	 

     

    

 

	 	3.	If the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such value as the Administrator, in good faith, shall determine in compliance with applicable laws.

 

	 	p.	ISO means an option intended to qualify as an incentive stock option under Section 422 of the Code.

 

	 	q.	Non-Qualified Option means an option which is not intended to qualify as an ISO.

 

	 	r.	Option means an ISO or Non-Qualified Option granted under the Plan.

 

	 	s.	Participant means an Employee, director or Consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan. As used herein, “Participant” shall include “Participant’s Survivors” where the context requires.

 

	 	t.	Performance Based Award means a Stock Grant or Stock-Based Award which vests based on the attainment of written Performance Goals as set forth in Paragraph 9 hereof.

 

	 	u.	Performance Goals means performance goals based on one or more of the following criteria: (i) pre-tax income or after-tax income; (ii) income or earnings including operating income, earnings before or after taxes, interest, depreciation, amortization, and/or extraordinary or special items; (iii) net income excluding amortization of intangible assets, depreciation and impairment of goodwill and intangible assets and/or excluding charges attributable to the adoption of new accounting pronouncements; (iv) earnings or book value per share (basic or diluted); (v) return on assets (gross or net), return on investment, return on capital, return on invested capital or return on equity; (vi) return on revenues; (vii) cash flow, free cash flow, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (viii) economic value created; (ix) operating margin or profit margin; (x) stock price or total shareholder return; (xi) income or earnings from continuing operations; (xii) cost targets, reductions and savings, expense management, productivity and efficiencies; (xiii) operational objectives, consisting of one or more objectives based on achieving progress in research and development programs or achieving regulatory milestones related to development and or approval of products; and (xiv) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration or market share of one or more products or customers, geographic business expansion, customer satisfaction, employee satisfaction, human resources management, supervision of litigation, information technology, and goals relating to acquisitions, divestitures, joint ventures and similar transactions. Where applicable, the Performance Goals may be expressed in terms of a relative measure against a set of identified peer group companies, attaining a specified level of the particular criterion or the attainment of a percentage increase or decrease in the particular criterion, and may be applied to one or more of the Company or an Affiliate of the Company, or a division or strategic business unit of the Company, all as determined by the Committee. The Performance Goals may include a threshold level of performance below which no Performance-Based Award will be issued or no vesting will occur, levels of performance at which Performance-Based Awards will be issued or specified vesting will occur, and a maximum level of performance above which no additional issuances will be made or at which full vesting will occur. Each of the foregoing Performance Goals shall be evaluated in an objectively determinable manner in accordance with Section 162(m) of the Code and in accordance with generally accepted accounting principles where applicable, unless otherwise specified by the Committee, and shall be subject to certification by the Committee. The Committee shall have the authority to make equitable adjustments to the Performance Goals in recognition of unusual or non-recurring events affecting the Company or any Affiliate or the financial statements of the Company or any Affiliate, in response to changes in applicable laws or regulations, or to account for items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in accounting principles provided that any such change shall at all times satisfy the provisions of Section 162(m) of the Code.

 

    	 	 	 

     

    

 

	 	v.	Plan means this Teligent, Inc. 2016 Equity Incentive Plan.

 

	 	w.	Securities Act means the Securities Act of 1933, as amended.

 

	 	x.	Shares means shares of the Common Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued under the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both.

 

	 	y.	Stock-Based Award means a grant by the Company under the Plan of an equity award or an equity based award which is not an Option or a Stock Grant, which the Committee may, in its sole discretion, structure to qualify in whole or in part as “performance-based compensation” under Section 162(m) of the Code.

 

	 	z.	Stock Grant means a grant by the Company of Shares under the Plan, which the Committee may, in its sole discretion, structure to qualify in whole or in part as “performance-based compensation” under Section 162(m) of the Code.

 

	 	aa.	Stock Right means a right to Shares or the value of Shares of the Company granted pursuant to the Plan — an ISO, a Non-Qualified Option, a Stock Grant or a Stock-Based Award.

 

	 	bb.	Survivor means a deceased Participant’s legal representatives and/or any person or persons who acquired the Participant’s rights to a Stock Right by will or by the laws of descent and distribution.

 

	 	2.	PURPOSES OF THE PLAN.

 

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

 

	 	3.	SHARES SUBJECT TO THE PLAN.

 

(a)          
(a) The number of Shares which may be issued from time to time pursuant to this Plan shall be the sum of: (i) 2,000,000 shares
of Common Stock and (ii) any shares of Common Stock that are represented by awards granted under the Company’s 1999 Director
Plan and 2009 Equity Incentive Plan that are forfeited, expire or are cancelled without delivery of shares of Common Stock or which
result in the forfeiture of shares of Common Stock back to the Company on or after May 25, 2016, or the equivalent of such number
of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination,
recapitalization or similar transaction in accordance with Paragraph 25 of this Plan; provided, however, that no more than 2,500,000
Shares shall be added to the Plan pursuant to subsection (ii).

 

(b)          If
an Option ceases to be “outstanding,” in whole or in part (other than by exercise), or if the Company shall reacquire
(at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock
Right expires or is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the unissued or reacquired
Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan. Notwithstanding
the foregoing, if a Stock Right is exercised, in whole or in part, by tender of Shares or if the Company or an Affiliate’s
tax withholding obligation is satisfied by withholding Shares, the number of Shares deemed to have been issued under the Plan for
purposes of the limitation set forth in Paragraph 3(a) above shall be the number of Shares that were subject to the Stock Right
or portion thereof, and not the net number of Shares actually issued. However, in the case of ISOs, the foregoing provisions shall
be subject to any limitations under the Code.

 

    	 	 	 

     

    

 

	 	4.	ADMINISTRATION OF THE PLAN.

 

The Administrator of
the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee,
in which case the Committee shall be the Administrator. Notwithstanding the foregoing, the Board of Directors may not take any
action that would cause any outstanding Stock Right that would otherwise qualify as performance-based compensation under Section
162(m) of the Code to fail to so qualify. Subject to the provisions of the Plan, the Administrator is authorized to:

 

(a)          Interpret
the provisions of the Plan and all Stock Rights and to make all rules and determinations which it deems necessary or advisable
for the administration of the Plan;

 

(b)          Determine
which Employees, directors and Consultants shall be granted Stock Rights;

 

(c)          Determine
the number of Shares for which a Stock Right or Stock Rights shall be granted, provided, however, that in no event shall Stock
Rights with respect to more than 1,000,000 Shares be granted to any Participant in any fiscal year;

 

(d)          Specify
the terms and conditions upon which a Stock Right or Stock Rights may be granted, provided however, except in the case of death,
disability, retirement or Change of Control, Stock Rights shall not vest, and any right of the Company to restrict or reacquire
Shares subject to a Stock Grant shall not lapse, less than one (1) year from the date of grant, provided that time-based vesting
may accrue incrementally over such one-year period; and provided further that, notwithstanding the foregoing, Stock Rights may
be granted to non-employee directors having time-based vesting of less than one (1) year from the date of grant so long as no more
than five percent (5%) of the Shares reserved for issuance under the Plan pursuant to Paragraph 3(a) above (as adjusted
under Paragraph 25 of this Plan) may be granted in the aggregate pursuant to such awards;

 

(e)          Determine
Performance Goals no later than such time as required to ensure that a Performance-Based Award which is intended to comply with
the requirements of Section 162(m) of the Code so complies;

 

(f)          Amend
any term or condition of any outstanding Stock Right, other than reducing the exercise price or purchase price, provided that (i)
such term or condition as amended is not prohibited by the Plan; (ii) any such amendment shall not impair the rights of a Participant
under any Stock Right previously granted without such Participant’s consent or in the event of death of the Participant the
Participant’s Survivors; and (iii) any such amendment shall be made only after the Administrator determines whether such
amendment would cause any adverse tax consequences to the Participant, including, but not limited to, the annual vesting limitation
contained in Section 422(d) of the Code and described in Paragraph 6(b)(iv) below with respect to ISOs and pursuant to Section
409A of the Code;

 

(g)          Make
any adjustments in the Performance Goals included in any Performance-Based Awards provided that such adjustments comply with the
requirements of Section 162(m) of the Code; and

 

(h)          Adopt
any sub-plans applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with
or take advantage of any tax or other laws applicable to the Company, any Affiliate or to Participants or to otherwise facilitate
the administration of the Plan, which sub-plans may include additional restrictions or conditions applicable to Stock Rights or
Shares issuable pursuant to a Stock Right;

 

provided, however, that all such interpretations,
rules, determinations, terms and conditions shall be made and prescribed in the context of not causing any adverse tax consequences
under Section 409A of the Code and preserving the tax status under Section 422 of the Code of those Options which are designated
as ISOs and in accordance with Section 162(m) of the Code for all other Stock Rights to which the Committee has determined Section
162(m) is applicable. Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the
Plan or of any Stock Right granted under it shall be final, unless otherwise determined by the Board of Directors, if the Administrator
is the Committee. In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan
that would otherwise be the responsibility of the Committee.

 

    	 	 	 

     

    

 

To the extent permitted
under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities and powers
to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected
by it. The Board of Directors or the Committee may revoke any such allocation or delegation at any time. Notwithstanding the foregoing,
only the Board of Directors or the Committee shall be authorized to grant a Stock Right to any director of the Company or to any
“officer” of the Company as defined by Rule 16a-1 under the Exchange Act.

 

	 	5.	ELIGIBILITY FOR PARTICIPATION.

 

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

 

(b)          Grants
to Non-Employee Directors:  The maximum grant-date fair value of Stock Rights granted under the Plan in any 12-month period
to any one non-Employee director shall be $500,000, in each case computed in accordance with FASB ASC Topic 718 (or any successor
provision).  The foregoing limit related to non-Employee directors shall not apply to any Stock Rights or Shares granted pursuant
to a non-Employee director’s election to receive Stock Rights or Shares in lieu of cash retainers or other fees (to the extent
such Stock Rights or Shares have a fair value equal to the value of such cash retainers or other fees).

 

	 	6.	TERMS AND CONDITIONS OF OPTIONS.

 

Each Option shall be
set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the
Company, by the Participant. The Administrator may provide that Options be granted subject to such terms and conditions, consistent
with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate including, without
limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto. The Option Agreements
shall be subject to at least the following terms and conditions:

 

(a)          Non-Qualified
Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator
determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non-Qualified
Option:

 

	 	(i)	Exercise Price: Each Option Agreement shall state the exercise price (per share) of the Shares covered by each Option, which exercise price shall be determined by the Administrator and shall be at least equal to the Fair Market Value per share of Common Stock on the date of grant of the Option.

 

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

 

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

 

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

 

    	 	 	 

     

    

 

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

 

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

 

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

 

(b)          ISOs:
Each Option intended to be an ISO shall be issued only to an Employee who is deemed to be a resident of the United States for tax
purposes, and shall be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator
determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the Internal
Revenue Service:

 

	 	(i)	Minimum standards: The ISO shall meet the minimum standards required of Non-Qualified Options, as described in Paragraph 6(a) above, except clause (i) and (v) thereunder.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	 	7.	TERMS AND CONDITIONS OF STOCK GRANTS.

 

Each Stock Grant to
a Participant shall state the principal terms in an Agreement duly executed by the Company and, to the extent required by law or
requested by the Company, by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain
terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the
following minimum standards:

 

	 	(i)	Each Agreement shall state the purchase price per share, if any, of the Shares covered by each Stock Grant, which purchase price shall be determined by the Administrator but shall not be less than the minimum consideration required by the Delaware General Corporation Law, if any, on the date of the grant of the Stock Grant;

 

    	 	 	 

     

    

 

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

 

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

 

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

 

The Administrator shall
have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the Administrator
may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible
into Shares and the grant of stock appreciation rights, phantom stock awards or stock units. The principal terms of each Stock-Based
Award shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company,
by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which
the Administrator determines to be appropriate and in the best interest of the Company. Each Agreement shall include the terms
of any right of the Company including the right to terminate the Stock-Based Award without the issuance of Shares, the terms of
any vesting conditions, Performance Goals or events upon which Shares shall be issued. Under no circumstances may the Agreement
covering stock appreciation rights (a) have an exercise price (per share) that is less than the Fair Market Value per share
of Common Stock on the date of grant or (b) expire more than ten years following the date of grant.

 

The Company intends
that the Plan and any Stock-Based Awards granted hereunder be exempt from the application of Section 409A of the Code or meet the
requirements of paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code, to the extent applicable, and be operated
in accordance with Section 409A so that any compensation deferred under any Stock-Based Award (and applicable investment earnings)
shall not be included in income under Section 409A of the Code. Any ambiguities in the Plan shall be construed to effect the intent
as described in this Paragraph 8.

 

	 	9.	PERFORMANCE BASED AWARDS.

 

Notwithstanding anything
to the contrary herein, during any period when Section 162(m) of the Code is applicable to the Company and the Plan, Stock Rights
granted under Paragraph 7 and Paragraph 8 may be granted by the Committee in a manner which is deductible by the Company under
Section 162(m) of the Code (“Performance-Based Awards”). A Participant’s Performance-Based Award shall
be determined based on the attainment of written Performance Goals, which must be objective and approved by the Committee for a
performance period of between one and five years established by the Committee (I) while the outcome for that performance period
is substantially uncertain and (II) no more than 90 days after the commencement of the performance period to which the Performance
Goal relates or, if less, the number of days which is equal to 25% of the relevant performance period. The Committee shall determine
whether, with respect to a performance period, the applicable Performance Goals have been met with respect to a given Participant
and, if they have, to so certify and ascertain the amount of the applicable Performance-Based Award. No Performance-Based Awards
will be issued for such performance period until such certification is made by the Committee. The number of shares issued in respect
of a Performance-Based Award to a given Participant may be less than the amount determined by the applicable Performance Goal formula,
at the discretion of the Committee. The number of shares issued in respect of a Performance-Based Award determined by the Committee
for a performance period shall be paid to the Participant at such time as determined by the Committee in its sole discretion after
the end of such performance period. Nothing in this Section shall prohibit the Company from granting Stock-Based Awards subject
to performance criteria that do not comply with this Paragraph.

 

    	 	 	 

     

    

 

	 	10.	EXERCISE OF OPTIONS AND ISSUE OF SHARES.

 

An Option (or any part
or installment thereof) shall be exercised by giving written notice to the Company or its designee (in a form acceptable to the
Administrator, which may include electronic notice), together with provision for payment of the aggregate exercise price in accordance
with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set
forth in the Option Agreement. Such notice shall be signed by the person exercising the Option (which signature may be provided
electronically in a form acceptable to the Administrator), shall state the number of Shares with respect to which the Option is
being exercised and shall contain any representation required by the Plan or the Option Agreement. Payment of the exercise price
for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check;
or (b) at the discretion of the Administrator, through delivery of shares of Common Stock held for at least six months (if
required to avoid negative accounting treatment) having a Fair Market Value equal as of the date of the exercise to the aggregate
cash exercise price for the number of Shares as to which the Option is being exercised; or (c) at the discretion of the Administrator,
by having the Company retain from the Shares otherwise issuable upon exercise of the Option, a number of Shares having a Fair Market
Value equal as of the date of exercise to the aggregate exercise price for the number of Shares as to which the Option is being
exercised; or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established with a securities
brokerage firm, and approved by the Administrator; or (e) at the discretion of the Administrator, by any combination of (a), (b),
(c) and (d) above or (f) at the discretion of the Administrator, by payment of such other lawful consideration as the Administrator
may determine. Notwithstanding the foregoing, the Administrator shall accept only such payment on exercise of an ISO as is permitted
by Section 422 of the Code.

 

The Company shall then
reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s
Survivors, as the case may be). In determining what constitutes “reasonably promptly,” it is expressly understood that
the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any action with respect
to the Shares prior to their issuance. The Shares shall, upon delivery, be fully paid, non-assessable Shares.

 

	 	11.	PAYMENT IN CONNECTION WITH THE ISSUANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

 

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

 

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

 

	 	12.	RIGHTS AS A SHAREHOLDER.

 

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

 

	 	13.	ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS.

 

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

 

    	 	 	 

     

    

 

	 	14.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE OR DEATH OR DISABILITY.

 

Except as otherwise
provided in a Participant’s Option Agreement, in the event of a termination of service (whether as an Employee, director
or Consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:

 

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

 

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

 

	 	(iii)	The provisions of this Paragraph, and not the provisions of Paragraph 16 or 17, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of employment, director status or consultancy; provided, however, in the case of a Participant’s Disability or death within three months after the termination of employment, director status or consultancy, the Participant or the Participant’s Survivors may exercise the Option within one year after the date of the Participant’s termination of service, but in no event after the date of expiration of the term of the Option.

 

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

 

	 	(v)	A Participant to whom an Option has been granted under the Plan who is absent from the Company or an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide; provided, however, that, for ISOs, any leave of absence granted by the Administrator of greater than ninety days, unless pursuant to a contract or statute that guarantees the right to reemployment, shall cause such ISO to become a Non-Qualified Option on the 181st day following such leave of absence.

 

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

 

    	 	 	 

     

    

 

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

 

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

 

	 	(i)	All outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated for Cause will immediately be forfeited.

 

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

 

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

 

Except as otherwise
provided in a Participant’s Option Agreement:

 

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

 

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

 

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

 

	 	(iv)	The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.

 

	 	17.	EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise
provided in a Participant’s Option Agreement:

 

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

 

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

  

    	 	 	 

     

    

 

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

 

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

 

In the event of a termination
of service (whether as an Employee, director or Consultant) with the Company or an Affiliate for any reason before the Participant
has accepted a Stock Grant or a Stock-Based Award and paid the purchase price, if required, such grant shall terminate.

 

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

 

In addition, for purposes
of this Paragraph 18 and Paragraph 19 below, any change of employment or other service within or among the Company and any Affiliates
shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be
an Employee, director or Consultant of the Company or any Affiliate.

 

	 	19.	EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE, DEATH or DISABILITY.

 

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

 

	 	20.	EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR CAUSE.

 

Except as otherwise
provided in a Participant’s Agreement, the following rules apply if the Participant’s service (whether as an Employee,
director or Consultant) with the Company or an Affiliate is terminated for Cause:

 

	 	(i)	All Shares subject to any Stock Grant or Stock-Based Award that remain subject to forfeiture provisions or as to which the Company shall have a repurchase right shall be immediately forfeited to the Company as of the time the Participant is notified his or her service is terminated for Cause.

 

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

 

    	 	 	 

     

    

 

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

 

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

 

The Administrator shall
make the determination both as to whether Disability has occurred and the date of its occurrence (unless a procedure for such determination
is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such
determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost
of which examination shall be paid for by the Company.

 

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

 

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

 

	 	23.	PURCHASE FOR INVESTMENT.

 

Unless the offering
and sale of the Shares shall have been effectively registered under the Securities Act, the Company shall be under no obligation
to issue Shares under the Plan unless and until the following conditions have been fulfilled:

 

	 	(i)	The person who receives a Stock Right shall warrant to the Company, prior to the receipt of Shares, that such person is acquiring such Shares for his or her own account, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person acquiring such Shares shall be bound by the provisions of the following legend (or a legend in substantially similar form) which shall be endorsed upon the certificate evidencing the Shares issued pursuant to such exercise or such grant:

 

“The
shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any
person, including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under
the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an
exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state
securities laws.”

 

	 	(ii)	At the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued in compliance with the Securities Act without registration thereunder.

 

    	 	 	 

     

    

 

	 	24.	DISSOLUTION OR LIQUIDATION OF THE COMPANY.

 

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

 

	 	25.	ADJUSTMENTS.

 

Upon the occurrence
of any of the following events, a Participant’s rights with respect to any Stock Right granted to him or her hereunder shall
be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement.

 

(a)          Stock
Dividends and Stock Splits. If (i) the shares of Common Stock shall be subdivided or combined into a greater or smaller
number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock,
or (ii) additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed
with respect to such shares of Common Stock, each Stock Right and the number of shares of Common Stock deliverable thereunder shall
be appropriately increased or decreased proportionately, and appropriate adjustments shall be made including, in the exercise or
purchase price per share, to reflect such events. The number of Shares subject to the limitations in Paragraph 3(a) and 4(c) shall
also be proportionately adjusted upon the occurrence of such events and the Performance Goals applicable to outstanding Performance-Based
Awards.

 

(b)          Corporate
Transactions. If the Company is to be consolidated with or acquired by another entity in a merger, consolidation, or sale of
all or substantially all of the Company’s assets other than a transaction to merely change the state of incorporation (a
“Corporate Transaction”), the Administrator or the board of directors of any entity assuming the obligations
of the Company hereunder (the “Successor Board”), shall, as to outstanding Options, either (i) make appropriate
provision for the continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options
either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction
or securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that such Options
must be exercised (either (A) to the extent then exercisable or, (B) at the discretion of the Administrator, any such Options being
made partially or fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such notice,
at the end of which period such Options which have not been exercised shall terminate; or (iii) terminate such Options in exchange
for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the
number of shares of Common Stock into which such Option would have been exercisable (either (A) to the extent then exercisable
or, (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this
Subparagraph) less the aggregate exercise price thereof. For purposes of determining the payments to be made pursuant
to Subclause (iii) above, in the case of a Corporate Transaction the consideration for which, in whole or in part, is other than
cash, the consideration other than cash shall be valued at the fair value thereof as determined in good faith by the Board of Directors.

 

With respect to outstanding
Stock Grants, the Administrator or the Successor Board, shall make appropriate provision for the continuation of such Stock Grants
on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either
the consideration payable with respect to the outstanding Shares of Common Stock in connection with the Corporate Transaction or
securities of any successor or acquiring entity. In lieu of the foregoing, in connection with any Corporate Transaction, the Administrator
may provide that, upon consummation of the Corporate Transaction, each outstanding Stock Grant shall be terminated in exchange
for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of the
number of shares of Common Stock comprising such Stock Grant (to the extent such Stock Grant is no longer subject to any forfeiture
or repurchase rights then in effect or, at the discretion of the Administrator, all forfeiture and repurchase rights being waived
upon such Corporate Transaction).

 

In taking any of the
actions permitted under this Paragraph 25(b), the Administrator shall not be obligated by the Plan to treat all Stock Rights, all
Stock Rights held by a Participant, or all Stock Rights of the same type, identically.

 

    	 	 	 

     

    

 

(c)          Recapitalization
or Reorganization. In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction pursuant
to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock,
a Participant upon exercising an Option or accepting a Stock Grant after the recapitalization or reorganization shall be entitled
to receive for the price paid upon such exercise or acceptance if any, the number of replacement securities which would have been
received if such Option had been exercised or Stock Grant accepted prior to such recapitalization or reorganization.

 

(d)          Adjustments
to Stock-Based Awards. Upon the happening of any of the events described in Subparagraphs (a), (b) or (c) above, any outstanding
Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs. The Administrator or the
Successor Board shall determine the specific adjustments to be made under this Paragraph 25, including, but not limited to the
effect of any, Corporate Transaction and Change of Control and, subject to Paragraph 4, its determination shall be
conclusive.

 

(e)          Modification
of Options. Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph (a), (b) or (c) above with respect
to Options shall be made only after the Administrator determines whether such adjustments would (i) constitute a “modification”
of any ISOs (as that term is defined in Section 424(h) of the Code) or (ii) cause any adverse tax consequences for the holders
of Options, including, but not limited to, pursuant to Section 409A of the Code. If the Administrator determines that such adjustments
made with respect to Options would constitute a modification or other adverse tax consequence, it may refrain from making such
adjustments, unless the holder of an Option specifically agrees in writing that such adjustment be made and such writing indicates
that the holder has full knowledge of the consequences of such “modification” on his or her income tax treatment with
respect to the Option. This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion
of the ISO to violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).

 

(f)          Modification
of Performance-Based Awards. Notwithstanding the foregoing, with respect to any Performance-Based Award that is intended to
comply as “performance based compensation” under Section 162(m) of the Code, the Committee may adjust downwards, but
not upwards, the number of Shares payable pursuant to a Performance-Based Award, and the Committee may not waive the achievement
of the applicable Performance Goals except in the case of death or disability of the Participant.

 

	 	26.	ISSUANCES OF SECURITIES.

 

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

 

	 	27.	FRACTIONAL SHARES.

 

No fractional shares
shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such fractional
shares equal to the Fair Market Value thereof.

 

	 	28.	CONVERSION OF ISOS INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOS.

 

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

 

    	 	 	 

     

    

 

	 	29.	WITHHOLDING.

 

In the event that any
federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”) withholdings
or other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s salary,
wages or other remuneration in connection with the issuance of a Stock Right or Shares under the Plan or for any other reason required
by law, the Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance
in cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount
of such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock
or a promissory note, is authorized by the Administrator (and permitted by law). For purposes hereof, the fair market value of
the shares withheld for purposes of payroll withholding shall be determined in the manner set forth under the definition of Fair
Market Value provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If the Fair Market
Value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance
the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion may condition the exercise
of an Option for less than the then Fair Market Value on the Participant’s payment of such additional withholding.

 

	 	30.	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

 

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

 

	 	31.	TERMINATION OF THE PLAN.

 

The Plan will terminate
on April 5, 2026, the date which is ten years from the earlier of the date of its adoption by
the Board of Directors and the date of its approval by the shareholders of the Company. The Plan may be terminated at an earlier
date by vote of the shareholders or the Board of Directors of the Company; provided, however, that any such earlier termination
shall not affect any Agreements executed prior to the effective date of such termination. Termination of the Plan shall not affect
any Stock Rights theretofore granted.

 

	 	32.	AMENDMENT OF THE PLAN AND AGREEMENTS.

 

The Plan may be amended
by the shareholders of the Company. The Plan may also be amended by the Administrator, including, without limitation, to the extent
necessary to qualify any or all outstanding Stock Rights granted under the Plan or Stock Rights to be granted under the Plan for
favorable federal income tax treatment as may be afforded incentive stock options under Section 422 of the Code (including deferral
of taxation upon exercise), and to the extent necessary to qualify the Shares issuable under the Plan for listing on any national
securities exchange or quotation in any national automated quotation system of securities dealers and in order to continue to comply
with Section 162(m) of the Code; provided that any amendment approved by the Administrator which the Administrator determines is
of a scope that requires shareholder approval shall be subject to obtaining such shareholder approval. Other than as set forth
in Paragraph 25 of the Plan, the Administrator may not without shareholder approval reduce the exercise price of an Option or cancel
any outstanding Option in exchange for a replacement option having a lower exercise price, any Stock Grant, any other Stock-Based
Award or for cash. In addition, the Administrator not take any other action that is considered a direct or indirect “repricing”
for purposes of the shareholder approval rules of the applicable securities exchange or inter-dealer quotation system on which
the Shares are listed, including any other action that is treated as a repricing under generally accepted accounting principles.
Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under
a Stock Right previously granted to him or her. With the consent of the Participant affected, the Administrator may amend outstanding
Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan. In the discretion of
the Administrator, outstanding Agreements may be amended by the Administrator in a manner which is not adverse to the Participant.
Nothing in this Paragraph 32 shall limit the Administrator’s authority to take any action permitted pursuant to Paragraph
25.

  

    	 	 	 

     

    

 

	 	33.	EMPLOYMENT OR OTHER RELATIONSHIP.

 

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

 

	 	34.	SECTION 409A.

 

If a Participant is
a “specified employee” as defined in Section 409A of the Code (and as applied according to procedures of the Company
and its Affiliates) as of his separation from service, to the extent any payment under this Plan or pursuant to the grant of a
Stock-Based Award constitutes deferred compensation (after taking into account any applicable exemptions from Section 409A of the
Code), and to the extent required by Section 409A of the Code, no payments due under this Plan or pursuant to a Stock-Based Award
may be made until the earlier of: (i) the first day of the seventh month following the Participant’s separation from service,
or (ii) the Participant’s date of death; provided, however, that any payments delayed during this six-month period shall
be paid in the aggregate in a lump sum, without interest, on the first day of the seventh month following the Participant’s
separation from service.

 

The Administrator shall
administer the Plan with a view toward ensuring that Stock Rights under the Plan that are subject to Section 409A of the Code comply
with the requirements thereof and that Options under the Plan be exempt from the requirements of Section 409A of the Code, but
neither the Administrator nor any member of the Board, nor the Company nor any of its Affiliates, nor any other person acting hereunder
on behalf of the Company, the Administrator or the Board shall be liable to a Participant or any Survivor by reason of the acceleration
of any income, or the imposition of any additional tax or penalty, with respect to a Stock Right, whether by reason of a failure
to satisfy the requirements of Section 409A of the Code or otherwise.

 

	 	35.	INDEMNITY.

 

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

 

	 	36.	GOVERNING LAW.

 

This Plan shall be
construed and enforced in accordance with the law of the State of Delaware.Exhibit 10.1

 

Atlantic
Coast FINANCIAL Corporation

2016 OMNIBuS INCENTIVE PLAN

 

1.     Purposes
and Effective Date. 

 

(a)   Purpose.
The purpose of the Atlantic Coast Financial Corporation 2016 Omnibus Incentive Plan (the “Plan”) has two complementary
purposes: (i) to advance the interests of Atlantic Coast Financial Corporation (the “Company”) and its shareholders
by providing officers, directors, employees and consultants of the Company and its Affiliates, including Atlantic Coast Bank (the
“Bank”), upon whose judgment, initiative and efforts the successful conduct of the business of the Company and its
Affiliates largely depends, with an additional incentive to perform in a superior manner as well as to attract people of experience
and ability, and (ii) to increase shareholder value. The Plan will provide participants incentives to increase shareholder value
by offering the opportunity to acquire shares of the Company’s common stock, receive monetary payments based on the value
of such common stock, or receive other incentive compensation, on the potentially favorable terms that this Plan provides.

 

(b)   Effective
Date. This Plan will become effective, and Awards may be granted under this Plan, on and after the Effective Date. This Plan will
terminate as provided in Section 16.

 

2.     Definitions.
Capitalized terms used and not otherwise defined in this Plan or in any Award agreement have the following meanings: 

 

(a)   “Administrator”
means the Committee; provided that, to the extent the Committee has delegated authority and responsibility as an Administrator
of the Plan to one or more officers of the Company as permitted by Section 3(b), the term “Administrator” shall also
mean such officer or officers.

 

(b)   “Affiliate”
has the meaning ascribed to such term in Rule 12b-2 under the Exchange Act. Notwithstanding the foregoing, for purposes of determining
those individuals to whom an Option or a Stock Appreciation Right may be granted, the term “Affiliate” means any entity
that, directly or through one or more intermediaries, is controlled by or is under common control with, the Company within the
meaning of Code Sections 414(b) or (c); provided that, in applying such provisions, the phrase “at least 20 percent”
shall be used in place of “at least 80 percent” each place it appears therein.

 

(c)   “Award”
means a grant of Options, Stock Appreciation Rights, Performance Shares, Performance Units, Stock, Restricted Stock, Restricted
Stock Units, an Incentive Award, Dividend Equivalent Units or any other type of award permitted under this Plan. Any Award granted
under this Plan shall be provided or made in such manner and at such time as complies with the applicable requirements of Code
Section 409A to avoid a plan failure described in Code Section 409A(a)(1), including, without limitation, deferring payment to
a specified employee or until a specified distribution event, as provided in Code Section 409A(a)(2), and the provisions of Code
Section 409A are incorporated into this Plan to the extent necessary for any Award that is subject to Code Section 409A to comply
therewith.

 

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

 

(e)   “Cause”
(i) has the meaning given in a Participant’s employment, retention, change of control, severance or similar agreement with
the Company or any Affiliate, or (ii) if no such agreement is in effect, then shall mean a Participant’s personal dishonesty,
incompetence, willful misconduct, any breach of fiduciary duty involving personal profit, intentional failure to perform stated
duties, or the willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or a final
cease-and-desist order, any of which results in a material loss to the Company or an Affiliate.

 

    	 	1	 

     

    

 

(f)   A
“Change of Control” means a change in control of the Bank or the Company of a nature that:

 

(i)     would
be required to be reported in response to Item 5.01 of the current report on Form 8-K, as in effect on the date hereof, pursuant
to Section 13 or 15(d) of the Exchange Act; or

 

(ii)    results
in a Change in Control of the Bank or the Company within the meaning of the Home Owners' Loan Act, as amended ("HOLA"),
and applicable rules and regulations promulgated thereunder, as in effect at the time of the Change in Control; or

 

(iii)   without
limitation such a Change in Control shall be deemed to have occurred at such time as (a) any "person" (as the term is
used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of the combined voting power
of Company's outstanding securities, except for any securities purchased by the Company's employee stock ownership plan or trust;
or (b) individuals who constitute the Board on the Effective Date (the "Incumbent Board") cease for any reason to constitute
at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved
by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by the Company's
stockholders was approved by the same Nominating Committee serving under an Incumbent Board, shall be, for purposes of this clause
(b), considered as though he/she were a member of the Incumbent Board; or (c) a plan of reorganization, merger, consolidation,
sale of all or substantially all the assets of the Bank or the Company or similar transaction occurs in which the Bank or Company
is not the surviving institution; or (d) a proxy statement soliciting proxies from stockholders of the Company, by someone other
than the current management of the Company, seeking stockholder approval of a plan of reorganization, merger or consolidation of
the Company or similar transaction with one or more corporations as a result of which the outstanding shares of the class of securities
then subject to the Plan are to be exchanged for or converted into cash or property or securities not issued by the Company; or
(e) a tender offer is made for 30% or more of the voting securities of the Company and the stockholders owning beneficially or
of record 30% or more of the outstanding securities of the Company have tendered or offered to sell their shares pursuant to such
tender offer and such tendered shares have been accepted by the tender offeror.

 

If an Award is considered deferred
compensation subject to the provisions of Code Section 409A, then the foregoing definition shall be deemed amended to the minimum
extent necessary to comply with Code Section 409A, and the Administrator may include such amended definition in the Award agreement
issued with respect to such Award.

 

(g)   “Code”
means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code includes any successor provision
and the regulations promulgated under such provision.

 

(h)   “Committee”
means the Compensation Committee of the Board, any successor committee thereto or such other committee of the Board that is designated
by the Board with the same or similar authority. The Committee shall consist only of Non-Employee Directors (not fewer than two
(2)) who also qualify as Outside Directors to the extent necessary for the Plan to comply with Rule 16b-3 promulgated under the
Exchange Act and to permit Awards that are otherwise eligible and intended to qualify as “performance-based compensation”
under Section 162(m) of the Code to so qualify.

 

(i)   “Company”
means Atlantic Coast Financial Corporation and any successors thereto.

 

(j)   “Director”
means a member of the Board and includes a Director Emeritus.

 

(k)   “Director
Emeritus” means a former member of the Board who has been appointed to a Director Emeritus position.

 

    	 	2	 

     

    

 

(l)   “Dividend
Equivalent Unit” means the right to receive a payment, in cash or Shares, equal to the cash dividends or other cash distributions
paid with respect to a Share.

 

(m)   “Effective
Date” means the date the Company’s shareholders approve this Plan.

 

(n)   “Exchange
Act” means the Securities Exchange Act of 1934, as amended. Any reference to a specific provision of the Exchange Act includes
any successor provision and the regulations and rules promulgated under such provision.

 

(o)   “Fair
Market Value” means, per Share on a particular date, (i) if the Shares are listed on a national securities exchange, the
mean between the highest and lowest quoted selling prices on that date on the national securities exchange on which the Stock is
then traded, or if no sales of Stock occur on such date, then on the last preceding date on which there was a sale on such exchange;
or (ii) if the Shares are not listed on a national securities exchange, but are traded in an over-the-counter market, the mean
between the highest and lowest quoted selling prices (or, if there are no such selling prices, the bid prices) for the Shares on
that date, or on the last preceding date on which there was a sale of Shares on that market; or (iii) if the Shares are neither
listed on a national securities exchange nor traded in an over-the-counter market, the fair market value as determined by the Administrator,
based on a reasonable application of a reasonable valuation method, in its discretion. Notwithstanding the foregoing, in the case
of the sale of Shares, the actual sale price shall be the Fair Market Value of such Shares.

 

(p)   “Incentive
Award” means the right to receive a cash payment or another Award to the extent Performance Goals are achieved (or other
requirements are met), and shall include “Annual Incentive Awards” as described in Section 10 and “Long-Term
Incentive Awards” as described in Section 11.

 

(q)   “Non-Employee
Director” means a Director who is not also an employee of the Company or its Subsidiaries.

 

(r)   “Option”
means the right to purchase Shares at a stated price for a specified period of time.

 

(s)   “Outside
Director” means a Director who qualifies as an outside director within the meaning of Code Section 162(m).

 

(t)   “Participant”
means an individual selected by the Administrator to receive an Award.

 

(u)   “Performance
Goals” means any goals the Administrator establishes that relate to one or more of the following with respect to the Company,
the Bank or any one or more of the Company’s Subsidiaries, Affiliates or other business units: net earnings or net income
(before or after taxes); basic or diluted earnings per share (before or after taxes); net operating earnings; return on assets,
average assets, equity or average equity; share price (including, but not limited to, growth measures and total shareholder return);
efficiency ratio; regulatory capital ratios; CAMELS or other regulatory ratings; completion of acquisitions, dispositions or business
expansion; credit quality, non-performing asset or non-performing loan levels or ratios or loan delinquency levels; provision for
loan losses or net charge-offs; deposits; market share; loans; net interest margin; interest income; non-interest income; interest
expense; or non-interest expense. As to each Performance Goal, the relevant measurement of performance shall be computed in accordance
with generally accepted accounting principles, to the extent applicable, but, unless otherwise determined by the Administrator
and to the extent consistent with Code Section 162(m), will exclude the effects of the following: (i) charges for reorganizing
and restructuring; (ii) discontinued operations; (iii) asset write-downs; (iv) gains or losses on the disposition of a business;
(v) changes in tax or accounting principles, regulations or laws; (vi) mergers, acquisitions or dispositions; and (vii) extraordinary,
unusual and/or non-recurring items of gain or loss, that, in each case, the Company identifies in its audited financial statements,
including notes to the financial statements, or the Management’s Discussion and Analysis section of the Company’s annual
report. To the extent consistent with Code Section 162(m), the Administrator may also provide for other adjustments to Performance
Goals in the Award agreement or plan document evidencing any Award and may appropriately adjust any evaluation of performance under
a Performance Goal to exclude any of the following events that occurs during a performance period: (i) litigation, claims, judgments
or settlements; (ii) the effects of changes in laws or regulations affecting reported results; and (iii) accruals of any amounts
for payment under this Plan or any other compensation arrangements maintained by the Company or an Affiliate. In addition, in the
case of Awards that the Administrator determines at the date of grant will not be considered “performance-based compensation”
under Code Section 162(m), the Administrator may establish other Performance Goals and provide for other exclusions or adjustments
not listed in this Plan. Where applicable, the Performance Goals may be expressed, without limitation, in terms of attaining a
specified level of the particular criterion or the attainment of an increase or decrease (expressed as absolute numbers, averages
and/or percentages) in the particular criterion or achievement in relation to a peer group or other index. The Performance Goals
may include a threshold level of performance below which no payment will be made (or no vesting will occur), levels of performance
at which specified payments will be paid (or specified vesting will occur), and a maximum level of performance above which no additional
payment will be made (or at which full vesting will occur).

 

    	 	3	 

     

    

 

(v)   “Performance
Shares” means the right to receive Shares to the extent Performance Goals are achieved (or other requirements are met).

 

(w)   “Performance
Unit” means the right to receive a cash payment and/or Shares valued in relation to a unit that has a designated dollar value
or the value of which is equal to the Fair Market Value of one or more Shares, to the extent Performance Goals are achieved (or
other requirements are met).

 

(x)   “Person”
has the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, or any
group of Persons acting in concert that would be considered “persons acting as a group” within the meaning of Treas.
Reg. § 1.409A-3(i)(5).

 

(y)   “Plan”
means this Atlantic Coast Financial Corporation 2016 Omnibus Incentive Plan, as it may be amended from time to time.

 

(z)   “Restricted
Stock” means Shares that are subject to a risk of forfeiture or restrictions on transfer, or both a risk of forfeiture and
restrictions on transfer, which may lapse upon the achievement or partial achievement of Performance Goals or upon the completion
of a period of service, or both.

 

(aa)   “Restricted
Stock Unit” means the right to receive a cash payment and/or Shares the value of which is equal to the Fair Market Value
of one Share.

 

(bb)   “Section
16 Participants” means Participants who are subject to the provisions of Section 16 of the Exchange Act.

 

(cc)   “Share”
means a share of Stock.

 

(dd)   “Stock”
means the Common Stock of the Company, $.01 par value.

 

(ee)   “Stock
Appreciation Right” or “SAR” means the right to receive a cash payment, and/or Shares with a Fair Market Value,
equal to the appreciation of the Fair Market Value of a Share during a specified period of time.

 

(ff)   “Subsidiary”
means any corporation, limited liability company or other limited liability entity in an unbroken chain of entities beginning with
the Company if each of the entities (other than the last entities in the chain) owns the stock or equity interest possessing more
than fifty percent (50%) of the total combined voting power of all classes of stock or other equity interests in one of the other
entities in the chain.

 

    	 	4	 

     

    

 

3.     Administration.

 

(a)   Administration.
In addition to the authority specifically granted to the Administrator in this Plan, the Administrator has full discretionary authority
to administer this Plan, including but not limited to the authority to: (i) interpret the provisions of this Plan or any agreement
covering an Award; (ii) prescribe, amend and rescind rules and regulations relating to this Plan; (iii) correct any defect, supply
any omission, or reconcile any inconsistency in the Plan, any Award or any agreement covering an Award in the manner and to the
extent it deems desirable to carry this Plan or such Award into effect; and (iv) make all other determinations necessary or advisable
for the administration of this Plan. All Administrator determinations shall be made in the sole discretion of the Administrator
and are final and binding on all interested parties.

 

(b)   Delegation
to Other Committees or Officers. To the extent applicable law permits, the Board may delegate to another committee of the Board,
or the Committee may delegate to one or more officers of the Company, any or all of their respective authority and responsibility
as an Administrator of the Plan; provided that no such delegation is permitted with respect to Stock-based Awards made to Section
16 Participants at the time any such delegated authority or responsibility is exercised unless the delegation is to another committee
of the Board consisting entirely of Non-Employee Directors and does not relate to Awards intended to qualify as performance-based
compensation under Code Section 162(m). If the Board or the Committee has made such a delegation, then all references to the Administrator
in this Plan include such other committee or one or more officers to the extent of such delegation.

 

(c)   No
Liability; Indemnification. No member of the Board or the Committee, and no officer or member of any other committee to whom a
delegation under Section 3(b) has been made, will be liable for any act done, or determination made, by the individual in good
faith with respect to the Plan or any Award. The Company will indemnify and hold harmless each such individual as to any acts or
omissions, or determinations made, in each case done or made in good faith, with respect to this Plan or any Award to the maximum
extent that the law and the Company’s By-Laws permit.

 

4.     Eligibility.
The Administrator may designate any of the following as a Participant from time to time, to the extent of the Administrator’s
authority: any officer or other employee of the Company or its Affiliates; any individual that the Company or an Affiliate has
engaged to become an officer or employee; any consultant or advisor who provides services to the Company or its Affiliates; or
any Director, including a Non-Employee Director. The Administrator’s designation of, or granting of an Award to, a Participant
will not require the Administrator to designate such individual as a Participant or grant an Award to such individual at any future
time. The Administrator’s granting of a particular type of Award to a Participant will not require the Administrator to grant
any other type of Award to such individual. Notwithstanding the foregoing, in no event shall any Awards by made that will violate
the Bank’s charter and bylaws, the Company’s charter and bylaws, or any applicable federal or state law or regulations.

 

5.     Types
of Awards. Subject to the terms of this Plan, the Administrator may grant any type of Award to any Participant it selects,
but only employees of the Company or a Subsidiary may receive grants of incentive stock options within the meaning of Code Section
422. Awards may be granted alone or in addition to, in tandem with, or (subject to the prohibition on repricing set forth in Section
16(e)) in substitution for any other Award (or any other award granted under another plan of the Company or any Affiliate, including
the plan of an acquired entity).

 

6.     Shares
Reserved under this Plan.

 

(a)   Plan
Reserve. Subject to adjustment as provided in Section 18, an aggregate of 500,000 Shares, plus the number of Shares described in
Section 6(c), are reserved for issuance under this Plan; provided that only 500,000 Shares may be issued pursuant to the exercise
of incentive stock options. The Shares reserved for issuance may be either authorized and unissued Shares or Shares reacquired
at any time and now or hereafter held as treasury stock. The aggregate number of Shares reserved under this Section 6(a) shall
be depleted on the date of grant of an Award by the maximum number of Shares, if any, with respect to which such Award is granted.

 

    	 	5	 

     

    

 

(b)   Replenishment
of Shares Under this Plan. If (i) an Award lapses, expires, terminates or is cancelled without the issuance of Shares under, or
the payment of other compensation with respect to Shares covered by, the Award (whether due currently or on a deferred basis),
(ii) it is determined during or at the conclusion of the term of an Award that all or some portion of the Shares with respect to
which the Award was granted will not be issuable, or that other compensation with respect to Shares covered by the Award will not
be payable, on the basis that the conditions for such issuance will not be satisfied, (iii) Shares are forfeited under an Award
or (iv) Shares are issued under any Award and the Company subsequently reacquires them pursuant to rights reserved upon the issuance
of the Shares, then such Shares shall be recredited to the Plan’s reserve and may again be used for new Awards under this
Plan, but Shares recredited to the Plan’s reserve pursuant to clause (iv) may not be issued pursuant to incentive stock options.
Notwithstanding the foregoing, in no event shall the following Shares be recredited to the Plan’s reserve: (i) Shares purchased
by the Company using proceeds from Option exercises; (ii) Shares tendered or withheld in payment of the exercise price of an Option
or as a result of the net settlement of an outstanding Stock Appreciation Right; or (iii) Shares tendered or withheld to satisfy
federal, state or local tax withholding obligations.

 

(c)   Participant
Limitations. Subject to adjustment as provided in Section 18, no Participant may be granted Awards that could result in such Participant:

 

(i)     receiving Options for, and/or Stock Appreciation Rights with respect to, more than 100,000 Shares (or 25,000
Shares, in the case of a Non-Employee Director) during any fiscal year of the Company;

 

(ii)    receiving
Awards of Restricted Stock and/or Restricted Stock Units with respect to more than 100,000 Shares (or 25,000 Shares, in the case
of a Non-Employee Director) during any fiscal year of the Company;

 

(iii)   receiving
Awards of Performance Shares, and/or Awards of Performance Units, for more than 100,000 Shares (or 25,000 Shares, in the case of
a Non-Employee Director) in respect of any fiscal year of the Company, or more than 200,000 Shares (or 50,000 Shares, in the case
of a Non-Employee Director) in respect to any period of two consecutive fiscal years of the Company, or more than 300,000 Shares
(or 75,000 Shares, in the case of a Non-Employee Director) in respect of any period of three consecutive fiscal years of the Company;

 

(iv)   receiving
Annual Incentive Award(s) in respect of any single fiscal year of the Company that could result in a payment of more than $800,000;

 

(v)    receiving
Long-Term Incentive Award(s) and/or Award(s) of Performance Units the value of which is not based on the Fair Market Value of a
Share in respect of any period of two fiscal years of the Company that could result in the payment of more than $1,600,000, or
in respect of any period of three fiscal years of the Company that could result in the payment of more than $2,400,000; or

 

(vi)   receiving
other Stock-based Awards pursuant to Section 13, or Dividend Equivalent Units, relating to more than 100,000 Shares (or 25,000
Shares, in the case of a Non-Employee Director) during any fiscal year of the Company.

 

In all cases, determinations under this Section
6(c) should be made in a manner that is consistent with the exemption for performance based compensation that Code Section 162(m)
provides.

 

    	 	6	 

     

    

 

7.     Options.
Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each Option, including but not
limited to: (a) whether the Option is an “incentive stock option” which meets the requirements of Code Section 422,
or a “nonqualified stock option” which does not meet the requirements of Code Section 422; (b) the grant date, which
may not be any day prior to the date that the Administrator approves the grant; (c) the number of Shares subject to the Option;
(d) the exercise price, which may never be less than the Fair Market Value of the Shares subject to the Option as determined on
the date of grant; (e) the terms and conditions of vesting and exercise; (f) the term, except that an Option must terminate no
later than ten (10) years after the date of grant; and (g) the manner of payment of the exercise price. In all other respects,
the terms of any incentive stock option should comply with the provisions of Code Section 422 except to the extent the Administrator
determines otherwise. If an Option that is intended to be an incentive stock option fails to meet the requirements thereof, the
Option shall automatically be treated as a nonqualified stock option to the extent of such failure. To the extent permitted by
the Administrator, and subject to such procedures as the Administrator may specify, the payment of the exercise price of Options
may be made by (w) delivery of cash or other Shares or other securities of the Company (including by attestation) having a then
Fair Market Value equal to the purchase price of such Shares, (x) by delivery (including by fax) to the Company or its designated
agent of an executed irrevocable option exercise form together with irrevocable instructions to a broker-dealer to sell or margin
a sufficient portion of the Shares and deliver the sale or margin loan proceeds directly to the Company to pay for the exercise
price, (y) by surrendering the right to receive Shares otherwise deliverable to the Participant upon exercise of the Award having
a Fair Market Value at the time of exercise equal to the total exercise price, or (z) by any combination of (w), (x) and/or (y).
Except to the extent otherwise set forth in an Award agreement, a Participant shall have no rights as a holder of Stock as a result
of the grant of an Option until the Option is exercised, the exercise price and applicable withholding taxes are paid and the Shares
subject to the Option are issued thereunder.

 

8.     Stock
Appreciation Rights. Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each SAR,
including but not limited to: (a) whether the SAR is granted independently of an Option or relates to an Option; (b) the grant
date, which may not be any day prior to the date that the Administrator approves the grant; (c) the number of Shares to which the
SAR relates; (d) the grant price, which may never be less than the Fair Market Value of the Shares subject to the SAR as determined
on the date of grant; (e) the terms and conditions of exercise or maturity, including vesting; (f) the term, provided that an SAR
must terminate no later than ten (10) years after the date of grant; and (g) whether the SAR will be settled in cash, Shares or
a combination thereof. If an SAR is granted in relation to an Option, then unless otherwise determined by the Administrator, the
SAR shall be exercisable or shall mature at the same time or times, on the same conditions and to the extent and in the proportion,
that the related Option is exercisable and may be exercised or mature for all or part of the Shares subject to the related Option.
Upon exercise of any number of SARs, the number of Shares subject to the related Option shall be reduced accordingly and such Option
may not be exercised with respect to that number of Shares. The exercise of any number of Options that relate to an SAR shall likewise
result in an equivalent reduction in the number of Shares covered by the related SAR.

 

9.     Performance
and Stock Awards. Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each award
of Shares, Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units, including but not limited to: (a)
the number of Shares and/or units to which such Award relates; (b) whether, as a condition for the Participant to realize all or
a portion of the benefit provided under the Award, one or more Performance Goals must be achieved during such period as the Administrator
specifies; (c) the length of the vesting and/or performance period (provided that any period of vesting applicable to Restricted
Stock or Restricted Stock Units that are (i) not subject to a Performance Goal and (ii) granted to a Participant other than a Non-Employee
Director may not lapse more quickly than ratably over three (3) years from the date of grant, subject to Sections 14 and 18) and,
if different, the date on which payment of the benefit provided under the Award will be made; (e) with respect to Performance Units,
whether to measure the value of each unit in relation to a designated dollar value or the Fair Market Value of one or more Shares;
and (f) with respect to Restricted Stock Units and Performance Units, whether to settle such Awards in cash, in Shares (including
Restricted Stock), or in a combination of cash and Shares.

 

    	 	7	 

     

    

 

10.   Annual
Incentive Awards. Subject to the terms of this Plan, the Administrator will determine all terms and conditions of an Annual
Incentive Award, including but not limited to the Performance Goals, performance period, the potential amount payable, and the
timing of payment; provided that the Administrator must require that payment of all or any portion of the amount subject to the
Annual Incentive Award is contingent on the achievement or partial achievement of one or more Performance Goals during the period
the Administrator specifies, although the Administrator may specify that all or a portion of the Performance Goals subject to an
Award are deemed achieved upon a Participant’s death, disability (as defined by the Administrator) or retirement (as defined
by the Administrator) (except, in the case of an Award intended to constitute performance-based compensation under Code Section
162(m), to the extent inconsistent with the applicable requirements of Code Section 162(m)), or such other circumstances as the
Administrator may specify; and provided further that any performance period applicable to an Annual Incentive Award must relate
to a period of at least one year.

 

11.   Long-Term
Incentive Awards. Subject to the terms of this Plan, the Administrator will determine all terms and conditions of a Long-Term
Incentive Award, including but not limited to the Performance Goals, performance period (which must be more than one year), the
potential amount payable, and the timing of payment; provided that the Administrator must require that payment of all or any portion
of the amount subject to the Long-Term Incentive Award is contingent on the achievement or partial achievement of one or more Performance
Goals during the period the Administrator specifies, although the Administrator may specify that all or a portion of the Performance
Goals subject to an Award are deemed achieved upon a Participant’s death, disability (as defined by the Administrator) or
retirement (as defined by the Administrator) (except, in the case of an Award intended to constitute performance-based compensation
under Code Section 162(m), to the extent inconsistent with the applicable requirements of Code Section 162(m)), or such other circumstances
as the Administrator may specify.

 

12.   Dividend
Equivalent Units. Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each award
of Dividend Equivalent Units, including but not limited to whether: (a) such Award will be granted in tandem with another Award;
(b) payment of the Award will be made concurrently with dividend payments or credited to an account for the Participant which provides
for the deferral of such amounts until a stated time; (c) the Award will be settled in cash or Shares; and (d) as a condition for
the Participant to realize all or a portion of the benefit provided under the Award, one or more Performance Goals must be achieved
during such period as the Administrator specifies; provided that Dividend Equivalent Units may not be granted in connection with
an Option or Stock Appreciation Right; and provided further that no Dividend Equivalent Unit granted in tandem with another Award
shall include vesting provisions more favorable to the Participant than the vesting provisions, if any, to which the tandem Award
is subject; and provided further that no Dividend Equivalent Unit shall provide for payment on Performance Shares or Performance
Units prior to their vesting.

 

13.   Other
Stock-Based Awards. Subject to the terms of this Plan, the Administrator may grant to a Participant shares of unrestricted
Stock as replacement for other compensation to which the Participant is entitled, such as in payment of director fees, in lieu
of cash compensation, in exchange for cancellation of a compensation right, or as a bonus.

 

14.   Minimum
Vesting and Performance Periods. Notwithstanding any provision of this Plan that requires a minimum vesting and/or performance
period for an Award, the Administrator, at the time an Award is granted or any later date, may subject an Award to a shorter vesting
and/or performance period to take into account a Participant’s hire or promotion, or may accelerate or shorten the vesting
or deem an Award to be earned, in whole or in part, in the event of a Participant’s death, disability (as defined by the
Administrator), retirement (as defined by the Administrator), termination by the Company or an Affiliate without Cause or a Change
of Control. Notwithstanding the preceding statement or any other provision of the Plan, once established, the Administrator shall
have no discretion to increase the amount of compensation payable under an Award that is intended to be performance-based compensation
under Code Section 162(m), although the Administrator may decrease the amount of compensation a Participant may earn under such
an Award.

 

15.   Transferability.
Awards are not transferable other than by will or the laws of descent and distribution, unless and to the extent the Administrator
allows a Participant to: (a) designate in writing a beneficiary to exercise the Award or receive payment under the Award after
the Participant’s death; (b) transfer an Award to the former spouse of the Participant as required by a domestic relations
order incident to a divorce; or (c) transfer an Award; provided, however, that with respect to clause (c) above the Participant
may not receive consideration for such a transfer of an Award.

 

    	 	8	 

     

    

 

16.   Termination
and Amendment of Plan; Amendment, Modification or Cancellation of Awards. 

 

(a)   Term
of Plan. Unless the Board or the Administrator earlier terminates this Plan pursuant to Section 16(b), this Plan will terminate
on the date that is ten (10) years after the Effective Date. In addition, no Award may constitute qualified performance-based compensation
within the meaning of Code Section 162(m) unless, to the extent required by Code Section 162(m) for such Award to constitute qualified
performance-based compensation, the shareholder approval rules of Code Section 162(m) have been met.

 

(b)   Termination
and Amendment. The Board or the Administrator may amend, alter, suspend, discontinue or terminate this Plan at any time, subject
to the following limitations:

 

(i)   the
Board must approve any amendment of this Plan to the extent the Company determines such approval is required by: (A) prior action
of the Board, (B) applicable corporate law, or (C) any other applicable law;

 

(ii)   shareholders
must approve any amendment of this Plan (which may include an amendment to materially increase any number of Shares specified in
Section 6(a) or the limits set forth in Section 6(c), except as permitted by Section 18) to the extent the Company determines such
approval is required by: (A) Section 16 of the Exchange Act, (B) the Code, (C) the listing requirements of any principal securities
exchange or market on which the Shares are then traded, or (D) any other applicable law; and

 

(iii)   shareholders
must approve an amendment that would diminish the protections afforded by Section 16(e).

 

(c)   Amendment,
Modification, Cancellation and Disgorgement of Awards.

 

(i)   Except
as provided in Section 16(e) and subject to the requirements of this Plan, the Administrator may modify, amend or cancel any Award,
or waive any restrictions or conditions applicable to any Award or the exercise of the Award; provided that, except as otherwise
provided in the Plan or the Award agreement, any modification or amendment that materially diminishes the rights of the Participant,
or the cancellation of an Award, shall be effective only if agreed to by the Participant or any other person(s) as may then have
an interest in such Award, but the Administrator need not obtain Participant (or other interested party) consent for the modification,
amendment or cancellation of an Award pursuant to the provisions of subsection (ii) or Section 18 or as follows: (A) to the extent
the Administrator deems such action necessary to comply with any applicable law or the listing requirements of any principal securities
exchange or market on which the Shares are then traded; (B) to the extent the Administrator deems necessary to preserve favorable
accounting or tax treatment of any Award for the Company; or (C) to the extent the Administrator determines that such action does
not materially and adversely affect the value of an Award or that such action is in the best interest of the affected Participant
(or any other person(s) as may then have an interest in the Award). Notwithstanding the foregoing, unless determined otherwise
by the Administrator, any such amendment shall be made in a manner that will enable an Award intended to be exempt from Code Section
409A to continue to be so exempt, or to enable an Award intended to comply with Code Section 409A to continue to so comply.

 

(ii)   Notwithstanding
anything to the contrary in an Award agreement, the Administrator shall have full power and authority to terminate or cause the
Participant to forfeit the Award, and require the Participant to disgorge to the Company any gains attributable to the Award, if
the Participant engages in any action constituting, as determined by the Administrator in its discretion, Cause for termination,
or a breach of any Award agreement or any other agreement between the Participant and the Company or an Affiliate concerning noncompetition,
nonsolicitation, confidentiality, trade secrets, intellectual property, nondisparagement or similar obligations.

 

    	 	9	 

     

    

 

(iii)   Any
Awards granted pursuant to this Plan, and any Stock issued or cash paid pursuant to an Award, shall be subject to any recoupment
or clawback policy that is adopted by, or any recoupment or similar requirement otherwise made applicable by law, regulation or
listing standards to, the Company from time to time.

 

(d)   Survival
of Authority and Awards. Notwithstanding the foregoing, the authority of the Board and the Administrator under this Section 16
and to otherwise administer the Plan with respect to then-outstanding Awards will extend beyond the date of this Plan’s termination.
In addition, termination of this Plan will not affect the rights of Participants with respect to Awards previously granted to them,
and all unexpired Awards will continue in force and effect after termination of this Plan except as they may lapse or be terminated
by their own terms and conditions.

 

(e)   Repricing
and Backdating Prohibited. Notwithstanding anything in this Plan to the contrary, and except for the adjustments provided for in
Section 18, neither the Administrator nor any other person may (i) amend the terms of outstanding Options or SARs to reduce the
exercise or grant price of such outstanding Options or SARs; (ii) cancel outstanding Options or SARs in exchange for Options or
SARs with an exercise or grant price that is less than the exercise or grant price of the original Options or SARs; or (iii) cancel
outstanding Options or SARs with an exercise or grant price above the current Fair Market Value of a Share in exchange for cash
or other securities. In addition, the Administrator may not make a grant of an Option or SAR with a grant date that is effective
prior to the date the Administrator takes action to approve such Award.

 

(f)   Foreign
Participation. To assure the viability of Awards granted to Participants employed or residing in foreign countries, the Administrator
may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy,
accounting or custom. Moreover, the Administrator may approve such supplements to, or amendments, restatements or alternative versions
of, this Plan as it determines is necessary or appropriate for such purposes. Any such amendment, restatement or alternative versions
that the Administrator approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan for
any other country. In addition, all such supplements, amendments, restatements or alternative versions must comply with the provisions
of Section 16(b)(ii).

 

17.   Taxes.

 

(a)   Withholding.
In the event the Company or one of its Affiliates is required to withhold any Federal, state or local taxes or other amounts in
respect of any income recognized by a Participant as a result of the grant, vesting, payment or settlement of an Award or disposition
of any Shares acquired under an Award, the Company may deduct (or require an Affiliate to deduct) from any payments of any kind
otherwise due the Participant cash, or with the consent of the Administrator, Shares otherwise deliverable or vesting under an
Award, to satisfy such tax or other obligations. Alternatively, the Company or its Affiliate may require such Participant to pay
to the Company or its Affiliate, in cash, promptly on demand, or make other arrangements satisfactory to the Company or its Affiliate
regarding the payment to the Company or its Affiliate of the aggregate amount of any such taxes and other amounts. If Shares are
deliverable upon exercise or payment of an Award, then the Administrator may permit a Participant to satisfy all or a portion of
the Federal, state and local withholding tax obligations arising in connection with such Award by electing to (i) have the Company
or its Affiliate withhold Shares otherwise issuable under the Award, (ii) tender back Shares received in connection with such Award
or (iii) deliver other previously owned Shares, in each case having a Fair Market Value equal to the amount to be withheld; provided
that the amount to be withheld may not exceed the total minimum federal, state and local tax withholding obligations associated
with the transaction to the extent needed for the Company and its Affiliates to avoid an accounting charge. If an election is provided,
the election must be made on or before the date as of which the amount of tax to be withheld is determined and otherwise as the
Administrator requires. In any case, the Company and its Affiliates may defer making payment or delivery under any Award if any
such tax may be pending unless and until indemnified to its satisfaction.

 

    	 	10	 

     

    

 

(b)   No
Guarantee of Tax Treatment. Notwithstanding any provisions of this Plan to the contrary, the Company does not guarantee to any
Participant or any other Person with an interest in an Award that (i) any Award intended to be exempt from Code Section 409A shall
be so exempt, (ii) any Award intended to comply with Code Section 409A or Code Section 422 shall so comply, or (iii) any Award
shall otherwise receive a specific tax treatment under any other applicable tax law, nor in any such case will the Company or any
Affiliate be required to indemnify, defend or hold harmless any individual with respect to the tax consequences of any Award.

 

18.   Adjustment
and Change of Control Provisions. 

 

(a)   Adjustment
of Shares. If (i) the Company shall at any time be involved in a merger or other transaction in which the Shares are changed or
exchanged; (ii) the Company shall subdivide or combine the Shares or the Company shall declare a dividend payable in Shares, other
securities (other than stock purchase rights issued pursuant to a shareholder rights agreement) or other property; (iii) the Company
shall effect a cash dividend the amount of which, on a per Share basis, exceeds ten percent (10%) of the Fair Market Value of a
Share at the time the dividend is declared, or the Company shall effect any other dividend or other distribution on the Shares
in the form of cash, or a repurchase of Shares, that the Board determines by resolution is special or extraordinary in nature or
that is in connection with a transaction that the Company characterizes publicly as a recapitalization or reorganization involving
the Shares; or (iv) any other event shall occur, which, in the case of this clause (iv), in the judgment of the Administrator necessitates
an adjustment to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this
Plan, then the Administrator shall, in such manner as it may deem equitable to prevent dilution or enlargement of the benefits
or potential benefits intended to be made available under this Plan, adjust any or all of: (A) the number and type of Shares subject
to this Plan (including the number and type of Shares described in Sections 6(a), (b) and (c)) and which may after the event be
made the subject of Awards; (B) the number and type of Shares subject to outstanding Awards; (C) the grant, purchase, or exercise
price with respect to any Award; and (D) to the extent such discretion does not cause an Award that is intended to qualify as performance-based
compensation under Code Section 162(m) to lose its status as such, the Performance Goals of an Award. In any such case, the Administrator
may also (or in lieu of the foregoing) make provision for a cash payment to the holder of an outstanding Award in exchange for
the cancellation of all or a portion of the Award (without the consent of the holder of an Award) in an amount determined by the
Administrator effective at such time as the Administrator specifies (which may be the time such transaction or event is effective).
However, in each case, with respect to Awards of incentive stock options, no such adjustment may be authorized to the extent that
such authority would cause this Plan to violate Code Section 422(b). Further, the number of Shares subject to any Award payable
or denominated in Shares must always be a whole number. In any event, previously granted Options or SARs are subject to only such
adjustments as are necessary to maintain the relative proportionate interest the Options and SARs represented immediately prior
to any such event and to preserve, without exceeding, the value of such Options or SARs.

 

Without limitation, in
the event of any reorganization, merger, consolidation, combination or other similar corporate transaction or event, whether or
not constituting a Change of Control (other than any such transaction in which the Company is the continuing corporation and in
which the outstanding Stock is not being converted into or exchanged for different securities, cash or other property, or any combination
thereof), the Administrator may substitute, on an equitable basis as the Administrator determines, for each Share then subject
to an Award and the Shares subject to this Plan (if the Plan will continue in effect), the number and kind of shares of stock,
other securities, cash or other property to which holders of Stock are or will be entitled in respect of each Share pursuant to
the transaction.

 

Notwithstanding the foregoing,
in the case of a stock dividend (other than a stock dividend declared in lieu of an ordinary cash dividend) or subdivision or combination
of the Shares (including a reverse stock split), if no action is taken by the Administrator, adjustments contemplated by this subsection
that are proportionate shall nevertheless automatically be made as of the date of such stock dividend or subdivision or combination
of the Shares.

 

    	 	11	 

     

    

 

(b)   Issuance
or Assumption. Notwithstanding any other provision of this Plan, and without affecting the number of Shares otherwise reserved
or available under this Plan, in connection with any merger, consolidation, acquisition of property or stock, or reorganization,
the Administrator may authorize the issuance or assumption of awards under this Plan upon such terms and conditions as it may deem
appropriate.

 

(c)   Effect
of Change of Control. In the event of a Change of Control, except to the extent otherwise provided in an Award agreement, the Administrator
in its discretion may, at the time an Award is made or at any time thereafter, take one or more of the following actions: (i) provide
for the acceleration of any time period, or the deemed achievement of any Performance Goals, relating to the exercise or realization
of the Award; (ii) provide for the purchase or cancellation of the Award for an amount of cash or other property that could have
been received upon the exercise or realization of the Award had the Award been currently exercisable or payable (or the cancellation
of Awards in exchange for no payment to the extent that no cash or other property would be received upon the exercise or realization
of the Award in such circumstances); (iii) adjust the terms of the Award in the manner determined by the Administrator to reflect
the Change of Control; (iv) cause the Award to be assumed, or new right substituted therefor, by another entity; or (v) make such
other provision as the Administrator may consider equitable and in the best interests of the Company.

 

(d)   Application
of Limits on Payments.

 

(i)    Except
to the extent the Participant has in effect an employment or similar agreement with the Company or any Affiliate or is subject
to a policy that provides for a more favorable result to the Participant upon a Change of Control, if the value and amounts of
benefits under this Plan to a Participant in connection with a Change of Control, together with any other amounts and the value
of benefits received or to be received by the Participant in connection with a Change of Control would cause any amount to be nondeductible
for federal income tax purposes by the Company or the consolidated group of which the Company is a member pursuant to Code Section
280G, then amounts and benefits under the Plan to such Participant shall be reduced (not less than zero) to the extent necessary
so as to maximize amounts and the value of benefits to the Participant without causing any amount to become nondeductible by the
Company or such consolidated group pursuant to or by reason of such Code Section 280G. The Participant shall determine the allocation
of such reduction among payments and benefits to the Participant.

 

(ii)   This
Section 18(d) shall be amended to comply with any amendment or successor provision to Code Section 280G or Code Section 4999. If
such provisions are repealed without successor, then this Section 18(d) shall be cancelled without further effect.

 

19.   Miscellaneous.

 

(a)   Other
Terms and Conditions. The Administrator may provide in any Award agreement such other provisions (whether or not applicable to
the Award granted to any other Participant) as the Administrator determines appropriate to the extent not otherwise prohibited
by the terms of the Plan.

 

(b)   Employment
and Service. The issuance of an Award shall not confer upon a Participant any right with respect to continued employment or service
with the Company or any Affiliate, or the right to continue as a Director. Unless determined otherwise by the Administrator, for
purposes of the Plan and all Awards, the following rules shall apply:

 

(i)     a
Participant who transfers employment between the Company and its Affiliates, or between Affiliates, will not be considered to have
terminated employment;

 

(ii)    a
Participant who ceases to be a Non-Employee Director because he or she becomes an employee of the Company or an Affiliate shall
not be considered to have ceased service as a Director with respect to any Award until such Participant’s termination of
employment with the Company and its Affiliates;

 

(iii)   a
Participant who ceases to be employed by the Company or an Affiliate and immediately thereafter becomes a Non-Employee Director,
a non-employee director of an Affiliate, or a consultant to the Company or any Affiliate shall not be considered to have terminated
employment until such Participant’s service as a director of, or consultant to, the Company and its Affiliates has ceased;

 

    	 	12	 

     

    

 

(iv)   a
Participant who ceases to be a Director because he or she has been appointed to a Director Emeritus position by the Board; and

 

(v)    a
Participant employed by an Affiliate will be considered to have terminated employment when such entity ceases to be an Affiliate.

 

Notwithstanding the foregoing, for
purposes of an Award that is subject to Code Section 409A, if a Participant’s termination of employment or service triggers
the payment of compensation under such Award, then the Participant will be deemed to have terminated employment or service upon
his or her “separation from service” within the meaning of Code Section 409A. Notwithstanding any other provision in
this Plan or an Award to the contrary, if any Participant is a “specified employee” within the meaning of Code Section
409A as of the date of his or her “separation from service” within the meaning of Code Section 409A, then, to the extent
required by Code Section 409A, any payment made to the Participant on account of such separation from service shall not be made
before a date that is six months after the date of the separation from service.

 

(c)   No
Fractional Shares. No fractional Shares or other securities may be issued or delivered pursuant to this Plan, and the Administrator
may determine whether cash, other securities or other property will be paid or transferred in lieu of any fractional Shares or
other securities, or whether such fractional Shares or other securities or any rights to fractional Shares or other securities
will be canceled, terminated or otherwise eliminated.

 

(d)   Unfunded
Plan; Awards Not Includable for Benefits Purposes. This Plan is unfunded and does not create, and should not be construed to create,
a trust or separate fund with respect to this Plan’s benefits. This Plan does not establish any fiduciary relationship between
the Company and any Participant or other person. To the extent any person holds any rights by virtue of an Award granted under
this Plan, such rights are no greater than the rights of the Company’s general unsecured creditors. Income recognized by
a Participant pursuant to an Award shall not be included in the determination of benefits under any employee pension benefit plan
(as such term is defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended) or group insurance
or other benefit plans applicable to the Participant which are maintained by the Company or any Affiliate, except as may be provided
under the terms of such plans or determined by resolution of the Board.

 

(e)   Requirements
of Law and Securities Exchange. The granting of Awards and the issuance of Shares in connection with an Award are subject to all
applicable laws, rules and regulations and to such approvals by any governmental agencies or national securities exchanges as may
be required. Notwithstanding any other provision of this Plan or any award agreement, the Company has no liability to deliver any
Shares under this Plan or make any payment unless such delivery or payment would comply with all applicable laws and regulations,
including without limitation 12 U.S.C. 1828(k) and 12 C.F.R. Part 359, HOLA and 12 C.F.R. 238 et seq., and the applicable requirements
of any securities exchange or similar entity, and unless and until the Participant has taken all actions required by the Company
in connection therewith and is not prohibited by a federal or state bank regulatory agency acting under applicable federal or state
law or regulation. The Company may impose such restrictions on any Shares issued under the Plan as the Company determines necessary
or desirable to comply with all applicable laws, rules and regulations or the requirements of any national securities exchanges.

 

(f)   Forfeiture
of Awards in the Event of Critical Undercapitalization. Notwithstanding any provision of this Plan to the contrary, all officers
and directors must exercise or forfeit any Awards in the event the Company becomes critically undercapitalized under the applicable
regulatory capital requirements, is subject to an enforcement action, or receives a capital directive under Federal Reserve Board
regulation section 263.83 (12 C.F.R. 263.83 or any successor thereto), or if directed to do so by the Federal Reserve Board, the
Company’s primary regulator.

 

    	 	13	 

     

    

 

(g)   Governing
Law; Venue. This Plan, and all agreements under this Plan, will be construed in accordance with and governed by the laws of the
State of Georgia, without reference to any conflict of law principles. Any legal action or proceeding with respect to this Plan,
any Award or any award agreement, or for recognition and enforcement of any judgment in respect of this Plan, any Award or any
award agreement, may only be brought and determined in (i) a court sitting in the State of Georgia, and (ii) a “bench”
trial, and any party to such action or proceeding shall agree to waive its right to a jury trial.

 

(h)   Limitations
on Actions. Any legal action or proceeding with respect to this Plan, any Award or any award agreement, must be brought within
one year (365 days) after the day the complaining party first knew or should have known of the events giving rise to the complaint.

 

(i)   Construction.
Whenever any words are used herein in the masculine, they shall be construed as though they were used in the feminine in all cases
where they would so apply; and wherever any words are used in the singular or plural, they shall be construed as though they were
used in the plural or singular, as the case may be, in all cases where they would so apply. Titles of sections are for general
information only, and this Plan is not to be construed with reference to such titles.

 

(j)   Severability.
If any provision of this Plan or any award agreement or any Award (a) is or becomes or is deemed to be invalid, illegal or unenforceable
in any jurisdiction, or as to any person or Award, or (b) would cause this Plan, any award agreement or any Award to violate or
be disqualified under any law the Administrator deems applicable, then such provision should be construed or deemed amended to
conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Administrator,
materially altering the intent of this Plan, award agreement or Award, then such provision should be stricken as to such jurisdiction,
person or Award, and the remainder of this Plan, such award agreement and such Award will remain in full force and effect.

 

    	 	14

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