Document:

EX-10.1

 Exhibit 10.1 

CONTINGENT VALUE RIGHTS AGREEMENT 

This CONTINGENT VALUE RIGHTS AGREEMENT (this “Agreement”), dated as of June 7, 2019 (the “Effective
Date”), is entered into by and between GTx, Inc., a Delaware corporation (“Parent”), Marc S. Hanover, as representative of the Holders (the “Holders’ Representative”), and Computershare Inc., as Rights
Agent. 
 RECITALS 

WHEREAS, Parent, Grizzly Merger Sub, Inc., a Delaware corporation (“Sub”), and Oncternal Therapeutics, Inc., a Delaware
corporation (the “Company”), have entered into an Agreement and Plan of Merger and Reorganization, dated as of March 6, 2019 (as amended or supplemented from time to time pursuant to the terms thereof, the “Merger
Agreement”), pursuant to which Sub will merge with and into the Company, with the Company surviving the Merger as a subsidiary of Parent; and 

WHEREAS, pursuant to the Merger Agreement, Parent has agreed to provide to the holders of record of Parent’s common stock, par value
$0.01 per share (“Parent Common Stock”), including Parent Common Stock subject to any Parent Deferred Stock Right, immediately prior to the Effective Time the right to receive contingent cash payments as hereinafter described; 

NOW, THEREFORE, in consideration of the foregoing and the consummation of the transactions referred to above, Parent and Rights Agent agree,
for the equal and proportionate benefit of all Holders (as hereinafter defined), as follows: 
  

	1.	 DEFINITIONS; CERTAIN RULES OF CONSTRUCTION. 

Capitalized terms used but not otherwise defined herein will have the meanings ascribed to them in the Merger Agreement. As used in this
Agreement, the following terms will have the following meanings: 
 1.1 “Acquiror” and “Acquisition”
have the respective meanings set forth in Section 7.3(a). 
 1.2 “Acting Holders” means, at the time of
determination, Holders of at least a majority of the outstanding CVRs. 
 1.3 “Affiliate” means, with respect to any
Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. The term “control” (including the terms “controlled by” and
“under common control with”) means the possession, directly or indirectly, of more than fifty percent (50%) of the voting securities entitled to vote for directors (or similar officials) of a Person or the possession, by contract or
otherwise, of the authority to direct the management and policies of a Person. 

 1.4 “Assignee” has the meaning set forth in Section 7.3(a).

 1.5 “Board of Directors” means the board of directors of Parent. 

1.6 “Board Resolution” means a copy of a resolution certified by the secretary or an assistant secretary of Parent to
have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Rights Agent. 

1.7 “Business Day” means any day other than a Saturday, Sunday or other day on which banks in New York, New York are
authorized or obligated by Law to be closed. 
 1.8 “Commercially Reasonable Efforts” means an aggregate measure of
effort and resources of a Party consistent with the exercise of prudent scientific and business judgment under similar circumstances and, with respect to the development, commercialization or manufacture of one or more of the SARD Products or the
divestment of the SARM Technology and SARM Products and, if applicable, the SARD Technology and SARD Products, the application of effort, resources and practices consistent with those applied in the exercise of prudent scientific and business
judgment by a pharmaceutical company of similar size and resources to the development, commercialization, manufacture or divestment of a similar pharmaceutical product or technology at a similar stage of development or commercialization and having
profit potential and strategic value comparable to that of such SARD Product, SARD Technology, SARM Technology or SARM Product, taking into account commercial, legal and regulatory factors, such as efficacy, safety, patent and regulatory
exclusivity, anticipated or approved labeling, present and future market potential, competitive products and market conditions, pricing and reimbursement considerations, costs for development and costs for obtaining, prosecuting, maintaining and
licensing relevant Intellectual Property Rights, all based on conditions then prevailing. Commercially Reasonable Efforts will not mean that a Party guarantees that it will actually accomplish the applicable task or objective or complete any
particular phases of development within any particular time horizons but will use commercially reasonable efforts to do so. For the avoidance of doubt, the use of Commercially Reasonable Efforts may, under certain circumstances, be consistent with
the termination of the development, manufacture and/or commercialization of any or all SARD Compounds and SARD Products. 
 1.9
“Cumulative Adjusted Net Sales” means, with respect to any SARD Product or SARM Product at any time point, the aggregate of all Net Sales for such SARD Product or SARM Product as of such time point minus (a) all
royalties incurred to UTRF as of such time point under, as applicable, (i) the UTRF SARD License Agreement on account of sales of such SARD Product or (ii) the UTRF SARM License Agreement on account of sales of such SARM Product and
minus (b) all fees, milestones, royalties and other payments incurred by Parent and its Affiliates to any other Third Party licensor in consideration for a license to such Third Party’s patents that would be infringed, absent such
license, by the manufacture, use, sale or import of such SARD Product or SARM Product. 
 1.10 “CVRs” means the
rights of Holders to receive contingent cash payments pursuant to the Merger Agreement and this Agreement. 
 1.11 “CVR
Payment” has the meaning set forth in Section 2.4(e). 

 1.12 “CVR Payment Period” means a period of two (2) consecutive
calendar quarters consisting of either the first two (2) calendar quarters in a calendar year or the last two (2) calendar quarters in a calendar year; provided, however, that the first CVR Payment Period shall commence on the Effective
Date and the last CVR Payment Period shall end on the last day of the CVR Term. 
 1.13 “CVR Payment Statement”
means, for a given CVR Payment Period during the CVR Term, a written statement of Parent, setting forth in reasonable detail, on a SARD Deal, SARM Deal, SARD Product and SARM Product basis, (a) Net Proceeds and/or Net Sales Proceeds, as
applicable, for such CVR Payment Period; (b) a delineation of the Gross Consideration received in such CVR Payment Period, including, if applicable, an allocation of all consideration received between, on the one hand, SARD Technology, SARD
Products, SARM Technology or SARD Products, as applicable, and on the other hand, all other technology, products or assets involved in the applicable SARD Deal or SARM Deal, (c) the Net Sales for such CVR Payment Period, (d) a delineation
and calculation of the Permitted Deductions applicable to such CVR Payment Period, and (e) to the extent that any Gross Consideration, Permitted Deduction or item included in the calculation of Net Sales is recorded in any currency other than
United States dollars during such CVR Payment Period, the exchange rates used for conversion of such currency into United States dollars. 

1.14 “CVR Register” has the meaning set forth in Section 2.3(b). 

1.15 “CVR Shortfall” has the meaning set forth in Section 4.7(b). 

1.16 “CVR Term” means the period beginning on the Closing and ending fifteen (15) years thereafter. 

1.17 “Development Costs” means, with respect to the SARD Technology, SARD Compounds or SARD Products, or the SARM
Technology, SARM Compounds, or SARM Products, the direct costs and expenses incurred by Parent and its Affiliates, without markup, to conduct development or regulatory activities for SARD Products or SARM Products, respectively, during the CVR Term,
including, but not limited to, for (a) the manufacture of SARD Products or supplies other than those manufactured for commercialization purposes, (b) consulting fees or salary and other cash compensation incurred with respect to any FTE
engaged in the conduct of such development or regulatory activities, on a prorated basis, (c) pre-clinical studies, clinical trials (including clinical studies performed in connection with efforts to
obtain pediatric exclusivity), chemistry, quality control, and regulatory activities, and (d) contract research organizations to perform any of the foregoing services, in each case (a)-(d), for the SARD Product or SARM Product that is the
subject of such SARD Deal or SARM Deal, respectively, but excluding overhead, travel expenses, capital expenditures, Phase 4 clinical trials that are not required by a regulatory authority for approval or needed to seek pediatric exclusivity
(whether conducted before or after approval) and amounts incurred for commercialization activities in relation to any SARD Product or SARM Product, respectively. 

1.18 “Development Cost Repayment Date” means, with respect to any SARD Product or SARM Product, the date on which five
percent (5%) of the Cumulative Adjusted Net Sales for 

 
such SARD Product or SARM Product first equals seventy-five percent (75%) of the cumulative Development Costs for such SARD Product or SARM Product. 

1.19 “DTC” means The Depository Trust Company or any successor thereto. 

1.20 “Excluded SARM Consideration” means any cash payable to Parent upon the closing of any SARM Deal that has been
reduced to an executed letter of intent prior to Closing. 
 1.21 “FTE” means the equivalent of a full-time employee
or consultant of Parent or its Affiliate conducting development, manufacturing, quality or regulatory activities with respect to the applicable SARD Technology or SARM Technology. In the case that any individual works partially on such activities
and partially on other work in a given year, then the full-time equivalent to be attributed to such individual’s work hereunder shall be equal to the percentage of such individual’s total work time in such year that such individual spent
working on such SARD Technology or SARM Technology activities. In no event shall (a) any one individual be counted as more than one (1) FTE or (b) indirect personnel (including support functions such as managerial, financial, legal or
business development) constitute FTEs. Notwithstanding the foregoing, any individual who performs development, manufacturing, quality or regulatory activities in addition to managerial activities will be considered to be an FTE only for that portion
of his or her time spent engaging in development, manufacturing, quality or regulatory activities. 
 1.22 “Governmental
Entity” means any foreign or domestic arbitrator, court, nation, government, any state or other political subdivision thereof and an entity exercising executive, legislative, judicial regulatory or administrative functions of, or pertaining
to, government. 
 1.23 “Gross Consideration” means the sum of (a) all cash consideration paid to Parent or its
Affiliates during the CVR Term in connection with any SARD Deal or SARM Deal (including with respect to any purchase of equity securities of Parent or its Affiliates in connection with a SARD Deal or SARM Deal, the portion of consideration paid to
Parent or its Affiliates that exceeds the fair market value of such equity securities at the time of purchase), but excluding any Excluded SARM Consideration, plus (b) with respect to non-cash
consideration received by Parent or its Affiliates during the CVR Term in connection with any SARD Deal or SARM Deal, all amounts received by Parent and its Affiliates for such non-cash consideration at the
time such non-cash consideration is monetized by the Parent or its Affiliates (which amounts will be subject to payment to the Rights Agent when such non-cash consideration is monetized and such amounts are
received by Parent or any of its Affiliates). If a SARD Deal involves assets that are not related to SARD Technology or SARD Products but are related to other proprietary technology, products or assets of Parent or its Affiliates, or if a SARM Deal
involves assets that are not related to SARM Technology or SARM Products but are related to other proprietary technology, products or assets of Parent or its Affiliates, then the total consideration will be allocated between all such technology,
products and assets, and only that consideration allocated to the SARD Technology, SARD Products, SARM Technology and SARM Products will be included in Gross Consideration. 

1.24 “GTx Board Members” means Robert J. Wills, Ph.D. and Michael G. Carter, M.D., collectively; provided, however, that if
either such Person is replaced on the Board of 

 
Directors, then such replacement Person shall be deemed a GTx Board Member in lieu of such replaced Person. 

1.25 “Holder” means a Person in whose name a CVR is registered in the CVR Register at the applicable time. 

1.26 “Holders’ Representative” means the Holders’ Representative named in the first paragraph of this
Agreement or any direct or indirect successor Holders’ Representative designated in accordance with Section 6.3. 
 1.27
“Independent Accountant” means an independent certified public accounting firm of nationally recognized standing designated either (a) jointly by the Holders’ Representative and Parent, or (b) if the Parties fail to
make a designation, jointly by an independent public accounting firm selected by Parent and an independent public accounting firm selected by the Holders’ Representative. 

1.28 “Initial Period” has the meaning set forth in Section 1.41. 

1.29 “Net Proceeds” means, for any CVR Payment Period, Gross Consideration minus Permitted Deductions. For
clarity, to the extent Permitted Deductions exceed Gross Consideration for any CVR Payment Period, any excess Permitted Deductions shall be applied against Gross Consideration in subsequent CVR Payment Periods. 

1.30 “Net Sales” means, with respect to a SARD Product or SARM Product, the gross amounts received by Parent and its
Affiliates for sales or provision of such SARD Product or SARM Product by Parent or its Affiliates to independent, unrelated Persons, less the following deductions, in each case to the extent commercially reasonable and customary, and actually
allowed or taken with respect to such sales or provision and not otherwise recovered by or reimbursed to the selling party: 
 (a)
outbound freight, shipment and insurance costs to the extent included in the price and separately itemized on the invoice; 
 (b)
excise taxes, use taxes, tariffs, sales taxes and customs duties, and/or other government charges imposed on the sale of such SARD Product or SARM Product (but specifically excluding, for clarity, any income taxes assessed against the income arising
from such sale) (including VAT, but only to the extent that such VAT is not reimbursable or refundable); 
 (c) discounts, refunds and
chargebacks actually granted, allowed or incurred in connection with the sale or provision of such SARD Product or SARM Product; 

(d) allowances or credits to customers actually given and not in excess of the selling price of such SARD Product or SARM Product, on
account of rejection, outdating, recalls or return of such SARD Product or SARM Product; and 
 (e) rebates, reimbursements, fees or
similar payments to wholesalers and other distributors, pharmacies and other retailers, buying groups (including group purchasing 

 
organizations), health care insurance carriers, pharmacy benefit management companies, health maintenance organizations, Governmental Authorities, or other institutions or health care
organizations. 
 If a single item falls into more than one of the categories set forth in clauses (a)-(e) above, such item may not be
deducted more than once. All such deductions shall be fairly and equitably allocated to such SARD Product or SARM Product and other products of Partner and its Affiliates such that such SARD Product or SARM Product does not bear a disproportionate
portion of such deductions. 
 Sales between Partner and its Affiliates shall be disregarded for purposes of calculating Net Sales except if
such purchaser is a distributor, pharmacy or end user. 
 In the event that a SARD Compound or SARM Compound is commercialized as part of a
combination product containing pharmaceutically active ingredients that are not SARD Compounds or SARM Compounds for a single price, the Net Sales for such SARD Product or SARM Product shall be calculated by multiplying the sales price of such
combination product by the fraction A/(A+B) where A is the fair market value in the applicable country during the applicable CVR Payment Period of such SARD Product or SARM Product and B is the fair market value of the other product(s) in the
applicable country during the applicable CVR Payment Period in the combination product. 
 With respect to any sale of any SARD Product or
SARM Product in a given country for any substantive consideration other than monetary consideration on arm’s length terms (which has the effect of reducing the amount received to below what it would have been in the absence of such non-monetary consideration), for purposes of calculating the Net Sales, such SARD Product or SARM Product shall be deemed to be sold exclusively for cash at the average Net Sales price charged to independent,
unrelated Persons for cash sales of such SARD Product or SARM Product in such country during the applicable CVR Payment Period (or if there were only de minimis cash sales in such country, at the fair market value as determined in good faith based
on pricing in comparable markets). Notwithstanding the foregoing, Net Sales shall not include amounts (whether actually existing or deemed to exist for purposes of calculation) for SARD Products or SARM Products distributed for use in clinical
trials. 
 Net Sales shall be calculated on a
country-by-country basis in a manner consistent with Partner’s or its Affiliates’ accounting policies for external reporting purposes, as consistently applied
across all of its pharmaceutical products, in accordance with U.S. generally accepted accounting principles (“GAAP”). 

1.31 “Net Sales Proceeds” means, for any CVR Payment Period and SARD Product or SARM Product, (a) until the
Development Cost Repayment Date for such SARD Product or SARM Product, five percent (5%) of Net Sales of such SARD Product or SARM Product and (b) from and after such Development Cost Repayment Date, ten percent (10%) of Net Sales of such SARD
Product or SARM Product, in each case (a) and (b), minus up to fifty percent (50%) of all fees, milestones, royalties and other payments paid by Parent and its Affiliates during the CVR Term to any Third Party licensor (but excluding
UTRF) in consideration for a license to such Third 

 
Party’s patents that would be infringed, absent such license, by the manufacture, use, sale or import of such SARD Product or SARM Product (such 50% amount, the “Third Party IP
Credit”); provided that the Net Sales Proceeds for any CVR Payment Period and SARD Product or SARM Product will not be reduced on account of the Third Party IP Credit below fifty percent (50%) of the amount set forth in the preceding clause
(a) or (b), as applicable. For clarity, if aggregate Net Sales for any SARD Product or SARM Product during any CVR Payment Period are less than zero, there will be no Net Sales Proceeds payable for such SARD Product or SARM Product for such CVR
Payment Period. For clarity, any particular amounts included in the Third Party IP Credit may not be deducted more than once from any Net Sales. 

1.32 “Officer’s Certificate” means a certificate signed by the chief executive officer, president, chief financial
officer, any vice president, the controller, the treasurer or the secretary, in each case of Parent, in his or her capacity as such an officer, and delivered to the Rights Agent. 

1.33 “Party” means Parent or the Rights Agent. 

1.34 “Payment Amount” means, with respect to each CVR Payment and each Holder, an amount equal to such CVR Payment
divided by the total number of CVRs and then multiplied by the total number of CVRs held by such Holder as reflected on the CVR Register. 

1.35 “Permitted Deductions” means, 

(a) with respect to a SARD Deal, the sum of: (i) all fees, milestone payments and royalties paid by Parent and its Affiliates to
UTRF pursuant to the UTRF SARD License Agreement with respect to the SARD Technology or SARD Product or SARD Compound that is subject to such SARD Deal, plus (ii) all fees, milestones, royalties and other payments paid by Parent and its
Affiliates to any other Third Party licensor in consideration for a license to such Third Party’s patents that would be infringed, absent such license, by the practice of such SARD Technology or the manufacture, use or sale of such SARD
Product, plus (iii) all patent prosecution and maintenance costs incurred by Parent and its Affiliates for such SARD Technology, plus (iv) fifty percent (50%) of all Development Costs for such SARD Technology, SARD Compound
or SARD Product, plus (v) one hundred percent (100%) of the out-of-pocket transaction costs incurred by Parent and its Affiliates to Third Parties for the
negotiation, entry into and closing of such SARD Deal, including any broker fees, finder’s fees, advisory fees, accountant or attorney’s fees, in each case (i)-(v) to the extent such costs have been incurred during the CVR Term and are not
reimbursed or paid to Parent or its Affiliate by a Third Party (including a Governmental Entity); or 
 (b) with respect to a SARM
Deal, the sum of: (i) all fees, milestone payments and royalties paid by Parent and its Affiliates to UTRF pursuant to the UTRF SARM License Agreement with respect to the SARM Technology or SARM Product or SARM Compound that is subject to such
SARM Deal, plus (ii) all fees, milestones, royalties and other payments paid by Parent and its Affiliates to any other Third Party licensor in consideration for a license to such Third Party’s patents that would be infringed, absent
such license, by the practice of such SARM Technology or the manufacture, use or sale of such SARM Product, plus (iii) all patent prosecution and maintenance costs incurred by Parent and its Affiliates for such SARM Technology,
plus 

 
(iv) fifty percent (50%) of all Development Costs for such SARM Technology, SARM Compound or SARM Product, plus (v) one hundred percent (100%) of the out-of-pocket transaction costs incurred by Parent and its Affiliates to Third Parties for the negotiation, entry into and closing of such SARM Deal, including any broker
fees, finder’s fees, advisory fees, accountant or attorney’s fees, in each case (i)-(v) to the extent such costs have been incurred during the CVR Term and are not reimbursed or paid to Parent or its Affiliate by a Third Party (including a
Governmental Entity). 
 1.36 “Permitted Transfer” means a transfer of CVRs (a) upon death of a Holder by will
or intestacy; (b) pursuant to a court order; (c) by operation of law (including by consolidation or merger) or without consideration in connection with the dissolution, liquidation or termination of any corporation, limited liability
company, partnership or other entity; (d) in the case of CVRs held in book-entry or other similar nominee form, from a nominee to a beneficial owner and, if applicable, through an intermediary, to the extent allowable by DTC; or
(e) pursuant to Section 2.6. 
 1.37 “Person” means any natural person, corporation, limited liability
company, trust, unincorporated association, partnership, joint venture or other entity. 
 1.38 “Rights Agent” means
the Rights Agent named in the first paragraph of this Agreement or any direct or indirect successor Rights Agent designated in accordance with the applicable provisions of this Agreement. 

1.39 “SARD Compound” means (1) any compound that (A) either (a) competitively or non-competitively binds to the androgen receptor or any variant thereof and causes the degradation thereof, (b) inhibits the synthesis, expression or activity of splice variants of the androgen receptor or
(c) inhibits the reactivation or constitutive activation of the androgen receptor or any variant thereof, including through (i) binding to the androgen receptor or variants thereof, (ii) inhibition of androgen receptor activation even
when androgens are synthesized within the cell (i.e. intratumorally), or (iii) inhibition of the synthesis, expression or activity of the androgen receptor or variants thereof including in pathologically altered cellular environments and
(B) is covered by a valid claim in any issued patent, or by a pending claim that was also pending as of the Effective Date, in any patent application, in each case that is listed in Part B of Schedule 3.12(a) of the Parent Disclosure Schedule
under the Merger Agreement, or that claims priority thereto or shares priority therewith or that arises from any of the foregoing (collectively, the “Listed SARD Patents”) and (2) any analog of such a compound included in
subsection (1) that is developed by Parent or its Affiliates prior to any Acquisition. Notwithstanding the foregoing, “SARD Compound” shall not include any compound that is owned or controlled by an Acquiror prior to the closing of
the Acquisition, or that is developed or acquired by such Acquiror subsequent to such closing independently of any activities of Parent and its Affiliates (excluding such Acquiror) and without reliance on or use of any SARD Technology, unless
such compound (y) is covered by a valid claim in any issued patent, or by a pending claim that was also pending as of the Effective Date, in any patent application, that is one of the Listed SARD Patents, and that is owned by or licensed to
Parent or its Affiliates (excluding such Acquiror) prior to the closing of the Acquisition, or (z) is an analog of a compound included in subsection (1) that is developed by Parent or its Affiliates prior to any Acquisition (such excluded
compounds, “Acquiror SARD Compounds”). 

 1.40 “SARD Deal” means any transaction (a) that is
(i) entered into during the period beginning on the Closing and ending ten (10) years thereafter (the “Initial Period”) or (ii) entered into within one (1) year after the end of the Initial Period based upon a
letter of intent, term sheet or similar document that was approved by Parent or its Affiliate and a Third Party during the Initial Period and (b) pursuant to which Parent or its Affiliate grants, sells or otherwise transfers to a Third Party
any rights under any SARD Technology or any rights to research, develop or commercialize any SARD Technology or SARD Product, including a license, option, covenant not to sue, or sale of assets with respect to any SARD Technology or SARD Product.
For clarity, the sale of all or substantially all of Parent’s stock or its assets, or a merger, acquisition or similar transaction shall not be deemed a SARD Deal. 

1.41 “SARD Product” means any product or service that (a) contains a SARD Compound or (b) uses or
incorporates any SARD Technology and is developed by Parent or its Affiliates prior to an Acquisition. In no event shall SARD Product mean or include any Acquiror SARD Compounds. 

1.42 “SARD Technology” means any and all Intellectual Property Rights that are (a) owned or licensed by Parent or
its Affiliates as of the Effective Date or during the term of this Agreement, but prior to the closing of any Acquisition and (b) related to (i) degradation of the androgen receptor or any variant thereof through competitive or non-competitive binding thereto, (ii) inhibition of splice variants of the androgen receptor or (iii) inhibition of reactivation or constitutive activation of the androgen receptor or any variant thereof,
including through (1) binding to the androgen receptor or variants thereof, (2) inhibition of androgen receptor activation even when androgens are synthesized within the cell (i.e. intratumorally), or (3) inhibition of the synthesis,
expression or activity of the androgen receptor or variants thereof including in pathologically altered cellular environments and (c) Listed SARD Patents or otherwise included in the Intellectual Property Rights licensed to Parent pursuant to
the UTRF SARD License Agreement or that cover any SARD Compound. Notwithstanding the foregoing, SARD Technology shall not include any Intellectual Property Rights owned or controlled by an Acquiror prior to the closing of the Acquisition or
developed or acquired by such Acquiror subsequent to such closing independently of any activities of Parent and its Affiliates (excluding such Acquiror) related to SARD Technology and SARD Compounds and without reliance on or use of any SARD
Technology or SARD Compounds (provided that the Acquiror establishes reasonable internal safeguards designed to ensure that such conditions of independence are satisfied). 

1.43 “SARM Compound” means (a) any compound that binds competitively to the androgen receptor at the ligand
binding domain and functions, or is intended to function, in vivo as an agonist in muscle or bone cells and as an antagonist in prostate or seminal vesicle cells and is covered by a valid claim in any patent that is listed in Part A of Schedule
3.12(a) of the Parent Disclosure Schedule under the Merger Agreement or that claims priority thereto or shares priority therewith or that arises from any of the foregoing (collectively, the “Listed SARM Patents”) and (b) any
analog of such a compound included in subsection (a) that is developed by Parent or its Affiliates prior to any Acquisition. Notwithstanding the foregoing, SARM Compound shall not include any compound that is owned or controlled by an Acquiror
prior to the closing of the Acquisition or developed or acquired by such Acquiror subsequent to such closing independently of any activities of Parent and its Affiliates (excluding such Acquiror) related to SARM

 
Technology and without reliance on or use of any SARM Technology, unless such compound is covered by a valid claim in any Listed SARM Patents or is an analog of such a compound included in
subsection (a) that is developed by Parent or its Affiliates prior to any Acquisition (such excluded compounds, “Acquiror SARM Compounds”). 

1.44 “SARM Deal” means any transaction (a) that is (i) entered into during the Initial Period,
(ii) entered into within one (1) year after the end of the Initial Period based upon a letter of intent, term sheet or similar document that was approved by Parent or its Affiliate and a Third Party during the Initial Period, or
(iii) entered into after the date of the Merger Agreement and prior to the Closing and (b) pursuant to which Parent or its Affiliate grants, sells or otherwise transfers to a Third Party any rights under any SARM Technology or any rights
to research, develop or commercialize any SARM Technology or SARM Product, including a license, option, covenant not to sue, or sale of assets with respect to any SARM Technology or SARM Product. For clarity, the sale of all or substantially all of
Parent’s stock or its assets, or a merger, acquisition or similar transaction shall not be deemed a SARM Deal. 
 1.45
“SARM Product” means any product or service that (a) contains a SARM Compound or (b) uses or incorporates any SARM Technology and is developed by Parent or its Affiliates prior to an Acquisition. In no event shall SARM
Product mean or include any Acquiror SARM Compounds. 
 1.46 “SARM Technology” means any and all Intellectual
Property Rights that are (a) owned or licensed by Parent or its Affiliates as of the Effective Date or during the term of this Agreement, but prior to the closing of any Acquisition and (b) related to modulation of the activity of the
androgen receptor through selective binding to its ligand binding domain by functioning in vivo as an agonist in muscle or bone cells and as an antagonist in prostate or seminal vesicle cells and (c) Listed SARM Patents or otherwise
included in the Intellectual Property Rights licensed to Parent pursuant to the UTRF SARM License Agreement. Notwithstanding the foregoing, SARM Technology shall not include any Intellectual Property Rights owned or controlled by an Acquiror prior
to the closing of the Acquisition or developed or acquired by such Acquiror subsequent to such closing independently of any activities of Parent and its Affiliates (excluding the Acquiror) related to SARM Technology and SARM Compounds and without
reliance on or use of any SARM Technology or SARM Compounds (provided that the Acquiror establishes reasonable internal safeguards designed to ensure that such conditions of independence are satisfied). 

1.47 “Third Party” means any Person other than Parent, Rights Agent or their respective Affiliates. 

1.48 “UTRF” means the University of Tennessee Research Foundation. 

1.49 “UTRF SARD License Agreement” means that certain License Agreement between UTRF and Parent, effective
March 1, 2015, and amended November 11, 2015, August 12, 2016, April 6, 2017, and October 23, 2018. 
 1.50
“UTRF SARM License Agreement” means that certain Consolidated, Amended, and Restated License Agreement between UTRF and Parent, effective July 24, 2007, and amended December 29, 2008. 

 1.51 Rules of Construction. Except as otherwise explicitly specified to the
contrary, (a) references to a Section means a Section of this Agreement unless another agreement is specified, (b) the word “including” (in its various forms) means “including without limitation,” (c) references to
a particular statute or regulation include all rules and regulations thereunder and any successor statute, rules or regulation, in each case as amended or otherwise modified from time to time, (d) words in the singular or plural form include
the plural and singular form, respectively, (e) references to a particular Person include such Person’s successors and assigns to the extent not prohibited by this Agreement and (f) all references to dollars or “$” refer to
United States dollars. 
  

	2.	 CONTINGENT VALUE RIGHTS 

2.1 CVRs. The CVRs represent the rights of Holders to receive contingent cash payments pursuant to this Agreement. The initial
Holders will be the holders of Parent Common Stock as of immediately prior to the Effective Time. 
 2.2 Nontransferable. The
CVRs may not be sold, assigned, transferred, pledged, encumbered or in any other manner transferred or disposed of, in whole or in part, other than through a Permitted Transfer. 

2.3 No Certificate; Registration; Registration of Transfer; Change of Address; CVR Distribution. 

(a) The CVRs will not be evidenced by a certificate or other instrument. 

(b) The Rights Agent will create and maintain a register (the “CVR Register”) for the purpose of registering CVRs and
transfers of CVRs as herein provided. The CVR Register will be created, and CVRs will be distributed, pursuant to written instructions to the Rights Agent from Parent. The CVR Register will initially show one position for Cede & Co.
representing all the shares of Parent Common Stock held by DTC on behalf of the street holders of the shares of Parent Common Stock held by such holders as of immediately prior to the Effective Time. The Rights Agent will have no responsibility
whatsoever directly to the street name holders with respect to transfers of CVRs. With respect to any payments to be made under Section 2.4(e) below, the Rights Agent will accomplish the payment to any former street name holders of shares of
Company Common Stock by sending one lump payment to DTC. The Rights Agent will have no responsibilities whatsoever with regard to the distribution of payments by DTC to such street name holders. 

(c) Subject to the restrictions on transferability set forth in Section 2.2, every request made to transfer a CVR must be in
writing and accompanied by a written instrument of transfer in form reasonably satisfactory to the Rights Agent pursuant to its guidelines, including a guaranty of signature by an “eligible guarantor institution” that is a member or
participant in the Securities Transfer Agents Medallion Program, duly executed by the Holder thereof, the Holder’s attorney duly authorized in writing, the Holder’s personal representative or the Holder’s survivor, and setting forth
in reasonable detail the circumstances relating to the transfer. Upon receipt of such written notice, the Rights Agent will, subject to its reasonable determination that the transfer instrument is in proper form and the transfer otherwise complies
with the other terms and 

 
conditions of this Agreement (including the provisions of Section 2.2), register the transfer of the CVRs in the CVR Register. Parent and Rights Agent may require payment of a sum sufficient
to cover any stamp or other tax or governmental charge that is imposed in connection with any such registration of transfer. The Rights Agent shall have no duty or obligation to take any action under any section of this Agreement that requires the
payment by a Holder of a CVR of applicable taxes or charges unless and until the Rights Agent is satisfied that all such taxes or charges have been paid. All duly transferred CVRs registered in the CVR Register will be the valid obligations of
Parent and will entitle the transferee to the same benefits and rights under this Agreement as those held immediately prior to the transfer by the transferor. No transfer of a CVR will be valid until registered in the CVR Register. 

(d) A Holder may make a written request to the Rights Agent to change such Holder’s address of record in the CVR Register. The
written request must be duly executed by the Holder. Upon receipt of such written notice, the Rights Agent will, subject to its reasonable determination that the transfer instrument is in proper form, promptly record the change of address in the CVR
Register. 
 (e) Parent will provide written instructions to the Rights Agent for the distribution of CVRs to holders of Parent Common
Stock as of immediately prior to the Effective Time (the “Record Time”). In addition, from time to time following the Record Time, Parent may provide written instructions to the Rights Agent to issue CVRs to holders of warrants to
purchase Parent Common Stock (“Parent Warrants”) outstanding as of the Record Time, if such holders are entitled to receive CVRs pursuant to the terms of such Parent Warrants. Subject to the terms and conditions of this Agreement
and Parent’s prompt confirmation of the Effective Time, the Rights Agent shall effect the distribution of the CVRs, less any applicable tax withholding, to each holder of Parent Common Stock as of the Record Time by the mailing of a statement
of holding reflecting such CVRs. 
 2.4 Payment Procedures. 

(a) On each anniversary of the Effective Date prior to Parent’s or its Affiliate’s receipt of any Gross Consideration or Net
Sales, Parent shall deliver to the Holders’ Representative and Rights Agent a written statement stating that no Gross Consideration or Net Sales have been received to date. 

(b) Subsequent to any SARD Deal or SARM Deal, within sixty (60) days after the end of each CVR Payment Period during the CVR Term,
commencing with the CVR Payment Period in which Parent or its Affiliate first receives Gross Consideration, Parent shall deliver to the Holders’ Representative and Rights Agent a CVR Payment Statement for such CVR Payment Period. Concurrent
with the delivery of each CVR Payment Statement, Parent shall pay the Rights Agent in U.S. dollars an amount equal to seventy-five percent (75%) of the Net Proceeds (if any) received in the applicable CVR Payment Period. For clarity, to the extent
that any non-cash consideration in Gross Consideration is monetized after the end of the CVR Term, Parent will include a description of such non-cash consideration in
the CVR Payment Statement for the CVR Payment Period in which it is received, and will make the applicable payment to the Rights Agent upon monetization of such non-cash consideration (regardless of whether
such monetization 

 
occurs after the end of the CVR Term). For further clarity, following a SARD Deal or a SARM Deal, any sale of SARD Products or SARM Products by the counterparty to such SARD Deal or SARM Deal
will not be included in Net Sales, and Parent shall not be obligated to make any payments to the Rights Agent regarding Net Sales Proceeds based on such sales (it being understood that payments made by such counterparty to Parent or its Affiliates
based on such sales will be included in Gross Consideration). 
 (c) In the event that Parent or any of its Affiliates commercializes
any SARD Product or SARM Product itself, within sixty (60) days after the end of each CVR Payment Period during the CVR Term, commencing with the CVR Payment Period in which Parent or its Affiliate first receives Net Sales, Parent shall deliver
to the Holders’ Representative and Rights Agent a CVR Payment Statement for such CVR Payment Period. Concurrent with the delivery of each CVR Payment Statement, Parent shall pay the Rights Agent in U.S. dollars an amount equal to the Net Sales
Proceeds for the applicable CVR Payment Period. 
 (d) All payments by Parent to the Rights Agent under this Agreement shall be made
in U.S. dollars. The rate of exchange to be used in computing the amount of currency equivalent in U.S. dollars shall be made at the average of the closing exchange rates reported in The Wall Street Journal (U.S., Eastern Edition) for the
first, middle and last Business Days of the applicable CVR Payment Period. 
 (e) The Rights Agent will promptly, and in any event
within ten (10) Business Days after receipt of a CVR Payment Statement under Section 2.4(b) or (c), send each Holder at its registered address a copy of such statement. If the Rights Agent also receives any payment under
Section 2.4(b) or (c) (each, a “CVR Payment”), then within ten (10) Business Days after the receipt of each CVR Payment, the Rights Agent will also pay to each Holder, by check mailed to the address of each Holder as
reflected in the CVR Register as of the close of business on the date of the receipt of the CVR Payment Statement, such Holder’s Payment Amount. 

(f) Parent shall be entitled to deduct or withhold, or cause the Rights Agent to deduct or withhold, from any amount otherwise payable
to a Holder pursuant to Section 2.4(e) such amounts as may be required to be deducted or withheld therefrom under the Code, the Treasury Regulations thereunder, or any other applicable Tax Law, or as may be determined by Parent. Prior to making
any such Tax withholdings or causing any such Tax withholdings to be made with respect to any Holder, Parent shall instruct the Rights Agent to solicit from such Holder an IRS Form W-9 or other applicable Tax
form within a reasonable amount of time and such Holder shall promptly provide any necessary Tax forms (including an IRS Form W-9 or an applicable IRS Form W-8) in order
to avoid or reduce such withholding amounts. To the extent such amounts are so deducted or withheld, such amounts shall be treated for all purposes under this Agreement as having been paid to the person to whom such amounts would otherwise have been
paid, and prior to the 15th day of February in the year following any payment of such taxes by Parent or the Rights Agent, Parent shall deliver (or shall cause the Rights Agent to deliver) to the
Person to whom such amounts would otherwise have been paid the original Form 1099 or other reasonably acceptable evidence of such withholding. 

 (g) Any portion of any CVR Payment that remains undistributed to the Holders six
(6) months after the CVR Payment is received by the Rights Agent from the Parent, provided that the Rights Agent has fully complied with Section 2.4(e), will be delivered by the Rights Agent to Parent, upon demand, and any Holder will
thereafter look only to Parent for payment of its share of such returned CVR Payment, without interest, but such Holder will have no greater rights against Parent than those accorded to general unsecured creditors of Parent under applicable law.

 (h) Neither Parent nor the Rights Agent will be liable to any person in respect of any Payment Amount delivered to a public
official pursuant to any applicable abandoned property, escheat or similar law. If, despite Parent’s and/or the Rights Agent’s commercially reasonable efforts to deliver a Payment Amount to the applicable Holder, such Payment Amount has
not been paid immediately prior to the date on which such Payment Amount would otherwise escheat to or become the property of any Governmental Entity, any such Payment Amount will, to the extent permitted by applicable law, become the property of
Parent, free and clear of all claims or interest of any person previously entitled thereto. In addition to and not in limitation of any other indemnity obligation herein, Parent agrees to indemnify and hold harmless Rights Agent with respect to any
liability, penalty, cost or expense Rights Agent may incur or be subject to in connection with transferring such property to Parent. 

(i) For the avoidance of doubt, as between Parent, Rights Agent and the Holders, Parent shall have sole responsibility for making all
payments due pursuant to the UTRF SARD License Agreement and the UTRF SARM License Agreement. The CVR Payments shall be in addition to, and not in lieu of, any such payments. 

2.5 No Voting, Dividends or Interest; No Equity or Ownership Interest in Parent. 

(a) The CVRs will not have any voting or dividend rights, and interest will not accrue on any amounts payable on the CVRs to any Holder.

 (b) The CVRs will not represent any equity or ownership interest in Parent or in any constituent company to the Merger. 

(c) Each Holder acknowledges and agrees to the appointment and authority of the Holders’ Representative to act as the exclusive
representative, agent and attorney-in-fact of such Holder and all Holders as set forth in this Agreement. Each Holder agrees that such Holder will not challenge or
contest any action, inaction, determination or decision of the Holders’ Representative or the authority or power of the Holders’ Representative and will not threaten, bring, commence, institute, maintain, prosecute or voluntarily aid any
action, which challenges the validity of or seeks to enjoin the operation of any provision of this Agreement, including, without limitation, the provisions related to the authority of the Holders’ Representative to act on behalf of such Holder
and all Holders as set forth in this Agreement. 
 2.6 Ability to Abandon CVR. A Holder may at any time, at such Holder’s
option, abandon all of such Holder’s remaining rights in a CVR by transferring such CVR to Parent without consideration therefor. Nothing in this Agreement is intended to prohibit Parent or its Affiliates from offering to acquire CVRs for
consideration in its sole discretion. 

	3.	 THE RIGHTS AGENT 

3.1 Certain Duties and Responsibilities. The Rights Agent will not have any liability for any actions taken or not taken in
connection with this Agreement, except to the extent of its willful misconduct, bad faith or gross negligence (in each case as determined by a final, non-appealable decision of a court of competent
jurisdiction). 
 3.2 Certain Rights of Rights Agent. The Rights Agent undertakes to perform such duties and only such duties
as are specifically set forth in this Agreement, and no implied covenants or obligations will be read into this Agreement against the Rights Agent. In addition: 

(a) the Rights Agent may rely and will be protected and held harmless by Parent in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 

(b) whenever the Rights Agent will deem it desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Rights Agent may rely upon an Officer’s Certificate, which certificate shall be full authorization and protection to the Rights Agent, and the Rights Agent shall, in the absence of bad faith, gross negligence or willful
misconduct on its part (in each case as determined by a final, non-appealable decision of a court of competent jurisdiction), incur no liability and be held harmless by Parent for or in respect of any action
taken, suffered or omitted to be taken by it under the provisions of this Agreement in reliance upon such certificate; 
 (c) the
Rights Agent may engage and consult with counsel of its selection and the advice of such counsel or any opinion of counsel will be full and complete authorization and protection and shall be held harmless by Parent in respect of any action taken,
suffered or omitted by it hereunder in the absence of bad faith and in reliance thereon; 
 (d) the permissive rights of the Rights
Agent to do things enumerated in this Agreement will not be construed as a duty; 
 (e) the Rights Agent will not be required to give
any note or surety in respect of the execution of such powers or otherwise in respect of the premises; 
 (f) the Rights Agent shall
not be liable for or by reason of, and shall be held harmless by Parent with respect to any of the statements of fact or recitals contained in this Agreement or be required to verify the same, but all such statements and recitals are and shall be
deemed to have been made by the Parent only; 
 (g) the Rights Agent will have no liability and shall be held harmless by Parent in
respect of the validity of this Agreement or the execution and delivery hereof (except the due execution and delivery hereof by the Rights Agent and the enforceability of this Agreement against the Rights Agent assuming the due execution and
delivery hereof by Parent); nor shall it be responsible for any breach by the Parent or any other Person of any covenant or condition contained in this Agreement; 

 (h) Parent agrees to indemnify Rights Agent for, and hold Rights Agent harmless
against, any loss, liability, damage, claim, judgment, fine, penalty, claim, demands, suits or expense (including the reasonable expenses and counsel fees and other disbursements) arising out of or in connection with Rights Agent’s preparation,
delivery, negotiation, amendment, administration and execution of this Agreement and the exercise and performance of its duties hereunder, including the costs and expenses of defending Rights Agent against any claims, charges, demands, suits or
loss, unless such loss has been determined by a final, non-appealable order of a court of competent jurisdiction to be a result of Rights Agent’s gross negligence, bad faith or willful or intentional
misconduct; 
 (i) Notwithstanding anything in this Agreement to the contrary, any liability of the Rights Agent under this Agreement
will be limited to the amount of annual fees (but not reimbursed expenses) paid by the Parent to the Rights Agent during the twelve (12) months immediately preceding the event for which recovery from the Rights Agent is being sought; 

(j) Rights Agent shall not be liable for special, punitive, indirect, incidental or consequential loss or damages of any kind whatsoever
(including, without limitation, lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damages, and regardless of the form of action; 

(k) Parent agrees (i) to pay the fees and expenses of the Rights Agent in connection with this Agreement as agreed upon in writing
by the Rights Agent and Parent on or prior to the date hereof, and (ii) to reimburse the Rights Agent for all taxes and governmental charges, reasonable expenses and other charges of any kind and nature incurred by the Rights Agent in the
execution of this Agreement (other than taxes imposed on or measured by the Rights Agent’s net income and franchise or similar taxes imposed on it). The Rights Agent will also be entitled to reimbursement from Parent for all reasonable and
necessary out-of-pocket expenses paid or incurred by it in connection with the administration by the Rights Agent of its duties hereunder; 

(l) No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or in the exercise of its rights if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably
assured to it; 
 (m) Parent agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed,
acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required or requested by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement; 

(n) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either
itself or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, omission, default, neglect or misconduct of any such attorneys or agents or for any loss to the Parent, to the holders of the
CVRs or any other Person resulting from any such act, omission, default, neglect or 

 
misconduct, absent gross negligence or bad faith in the selection and continued employment thereof (which gross negligence or bad faith must be determined by a final, non-appealable judgment of a court of competent jurisdiction); 
 (o) Unless otherwise specifically
prohibited by the terms of this Agreement, the Rights Agent and any stockholder, affiliate, member, director, officer, agent, representative or employee of the Rights Agent may buy, sell or deal in any of the securities of the Parent or become
pecuniarily interested in any transaction in which the Parent may be interested, or contract with or lend money to the Parent or otherwise act as fully and freely as though it were not the Rights Agent under this Agreement. Nothing herein shall
preclude the Rights Agent or any such stockholder, affiliate, director, member, officer, agent, representative or employee from acting in any other capacity for the Parent or for any other Person; 

(p) The Rights Agent shall act hereunder solely as agent for the Parent and it shall not assume any obligations or relationship of
agency or trust with any of the Holders or the Holder’s Representative; 
 (q) The Rights Agent shall not be deemed to have
knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be fully protected and shall incur no liability for failing to take action in connection therewith, unless and until it has received such
notice in writing; 
 (r) The Rights Agent shall not have any duty or responsibility in the case of the receipt of any written demand
from any Holder with respect to any action or default by the Parent, including, without limiting the generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or to make any demand
upon the Parent; and 
 (s) The provisions under this Section 3.2 shall survive the expiration of the CVRs and the termination of
this Agreement and the resignation, replacement or removal of the Rights Agent. The costs and expenses incurred in enforcing this right of indemnification shall be paid by the Parent. 

3.3 Resignation and Removal; Appointment of Successor. 

(a) The Rights Agent may resign at any time by giving written notice thereof to Parent specifying a date when such resignation will take
effect, which notice will be sent at least thirty (30) days prior to the date so specified. Parent has the right to remove Rights Agent at any time by notice specifying a date when such removal will take effect. Such notice of removal will be
given by Parent to Rights Agent, which notice will be sent at least thirty (30) days prior to the date so specified. 
 (b) If
the Rights Agent provides notice of its intent to resign, is removed or becomes incapable of acting, Parent, by a Board Resolution, will as soon as is reasonably possible appoint a qualified successor Rights Agent who, unless otherwise consented to
in writing by the Holders’ Representative, shall be a stock transfer agent of national reputation or the corporate trust department of a commercial bank. The successor Rights Agent so appointed will, forthwith upon

 
its acceptance of such appointment in accordance with Section 3.4, become the successor Rights Agent. 

(c) Parent will give notice of each resignation and each removal of a Rights Agent and each appointment of a successor Rights Agent by
mailing written notice of such event by first-class mail to the Holders as their names and addresses appear in the CVR Register. Each notice will include the name and address of the successor Rights Agent. If Parent fails to send such notice within
ten days after acceptance of appointment by a successor Rights Agent, the successor Rights Agent will cause the notice to be mailed at the expense of Parent. 

3.4 Acceptance of Appointment by Successor. Every successor Rights Agent appointed hereunder will execute, acknowledge and
deliver to Parent and to the retiring Rights Agent an instrument accepting such appointment and a counterpart of this Agreement, and thereupon such successor Rights Agent, without any further act, deed or conveyance, will become vested with all the
rights, powers, trusts and duties of the retiring Rights Agent. On request of Parent or the successor Rights Agent, the retiring Rights Agent will execute and deliver an instrument transferring to the successor Rights Agent all the rights (except
such rights of predecessor rights agent which survive pursuant to Section 3.3 of this Agreement), powers and trusts of the retiring Rights Agent. 
  

	4.	 COVENANTS 

4.1 List of Holders. Parent will furnish or cause to be furnished to the Rights Agent in such form as Parent receives from
Parent’s transfer agent (or other agent performing similar services for Parent), the names and addresses of the Holders within ten (10) Business Days of the Effective Time. 

4.2 Payment. If any CVR Payment is due under Section 2.4(b) or (c), Parent will deposit the CVR Payment with the Rights
Agent for payment to the Holders in accordance with Section 2.4(e). 
 4.3 Commercially Reasonable Efforts. 

(a) Subsequent to the Effective Date, Parent shall undertake such additional preclinical studies as it deems to be appropriate, in its
sole discretion, to determine if further development of any of the SARD Compounds will be undertaken by Parent. In the event that Parent reasonably determines based on such studies that it is commercially viable or reasonable to continue the
development of one or more SARD Compounds, it shall, or shall cause its Affiliates or any licensees to, use Commercially Reasonable Efforts to, during the CVR Term, develop one or more SARD Compounds. In the event that Parent reasonably determines
at any time following the conclusion of such studies (as determined by a majority vote of Parent’s Board of Directors (which Board of Directors may include one or more GTx Board Members, to the extent one or more GTx Board Members are serving
on the Parent’s Board of Directors at the time of such determination)), that further development of SARD Compounds or SARD Products is not commercially viable or reasonable, Parent shall provide written notice to the Rights Agent of such
determination and Parent shall have no further obligations under this Section 4.3(a). Thereafter, Parent shall use Commercially Reasonable Efforts to maintain and divest the SARD Technology, 

 
SARD Compounds and SARD Products; provided that such obligation will terminate upon a determination by the Parent’s Board of Directors (as determined by a majority vote of Parent’s
Board of Directors (which Board of Directors may include one or more GTx Board Members, to the extent one or more GTx Board Members are serving on the Parent’s Board of Directors at the time of such determination)) that it would no longer be
commercially reasonable to expend any efforts to divest the SARD Technology, SARD Compounds and SARD Products. 
 (b) Parent shall
have no obligations to develop any SARM Technology, SARM Compounds or SARM Products. Parent shall use Commercially Reasonable Efforts to maintain and divest the SARM Technology, SARM Compounds and SARM Products; provided that such obligation will
terminate upon a determination by the Parent’s Board of Directors (as determined by a majority vote of Parent’s Board of Directors (which Board of Directors may include one or more GTx Board Members, to the extent one or more GTx Board
Members are serving on the Parent’s Board of Directors at the time of such determination)) that it would no longer be commercially reasonable to expend any efforts to divest the SARM Technology, SARM Compounds and SARM Products. 

4.4 Books and Records. Parent shall, and shall cause its Affiliates to, keep true, complete and accurate records in sufficient
detail to enable the Holders and their consultants or professional advisors to confirm the applicable Payment Amount payable to each Holder hereunder in accordance with the terms specified in this Agreement. 

4.5 Audits. 

(a) Upon the written request of the Holders’ Representative provided to Parent not less than forty-five (45) days in advance
(such request not to be made more than once in any twelve (12) month period), Parent shall permit, and shall cause its Affiliates to permit, the Independent Accountant to have access during normal business hours to such of the records of Parent
or its Affiliates as may be reasonably necessary to determine the accuracy of the Net Proceeds and/or Net Sales Proceeds reported by Parent. Parent shall, and shall cause to its Affiliates to, furnish to the Independent Accountant such access, work
papers and other documents and information reasonably necessary for the Independent Accountant to calculate and verify the Net Proceeds and/or Net Sales Proceeds; provided that Parent may, and may cause its Affiliates to, redact documents and
information not relevant for such calculation pursuant to this Section 4.7. The Independent Accountant shall disclose to Parent and the Holders’ Representative any matters directly related to its findings to the extent reasonably necessary
to verify the Net Proceeds and/or Net Sales Proceeds. 
 (b) If the Independent Accountant concludes that a CVR Payment that was
properly due was not paid to the Rights Agent, or that any CVR Payment made was in an amount less than the amount due, Parent shall pay the CVR Payment or underpayment thereof to the Rights Agent for further distribution to the Holders plus interest
on such amount at the “prime rate” as published in The Wall Street Journal or similar reputable data source from time to time, calculated from when the full CVR Payment should have been paid to the date of actual payment (such
amount including interest being the “CVR Shortfall”). The CVR Shortfall shall be paid within ten (10) Business Days after the date the Independent Accountant delivers to Parent and the

 
Holders’ Representative the Independent Accountant’s written report. The decision of the Independent Accountant shall be final, conclusive and binding on Parent and the Holders, shall
be non-appealable and shall not be subject to further review. The fees charged by the Independent Accountant shall be paid by the Holders’ Representative; provided, however, that if the Independent
Accountant concludes that Parent has underreported or underpaid any CVR Payment by more than ten percent (10%), the fees charged by such Independent Accountant shall be paid by Parent. 

(c) Each Person seeking to receive information from Parent in connection with a review pursuant to Section 4.5 or this
Section 4.7 shall enter into, and shall cause its accounting firm to enter into, a reasonable and mutually satisfactory confidentiality agreement with Parent or any controlled Affiliate obligating such party to retain all such information
disclosed to such party in confidence pursuant to such confidentiality agreement. 
  

	5.	 AMENDMENTS 

5.1 Amendments without Consent of Holders. 

(a) Without the consent of any Holders or the Holders’ Representative, Parent, when authorized by a Board Resolution, at any time
and from time to time, and the Rights Agent may enter into one or more amendments hereto, solely to evidence the succession of another Person to Parent and the assumption by such successor of the covenants of Parent herein as provided in
Section 7.3. 
 (b) Without the consent of any Holders, Parent, when authorized by a Board Resolution and the Rights Agent, in
the Rights Agent’s sole and absolute discretion, at any time and from time to time, may enter into one or more amendments hereto, solely for any of the following purposes: 

(i) to evidence the succession of another Person as a successor Rights Agent and the assumption by such successor of the covenants and
obligations of the Rights Agent herein; 
 (ii) to add to the covenants of Parent such further covenants, restrictions, conditions or
provisions as Parent and the Rights Agent consider to be for the protection of the Holders; provided that, in each case, such provisions do not adversely affect the interests of the Holders; 

(iii) to cure any ambiguity, to correct or supplement any provision herein that may be defective or inconsistent with any other
provision herein, or to make any other provisions with respect to matters or questions arising under this Agreement; provided that, in each case, such provisions do not adversely affect the interests of the Holders; 

(iv) as may be necessary or appropriate to ensure that the CVRs are not subject to registration under the Securities Act or the
Exchange Act; 

 (v) to reduce the number of CVRs, in the event any Holder agrees to renounce such
Holder’s rights under this Agreement in accordance with Section 7.4 or to transfer such CVRs to Parent pursuant to Section 2.6; 

(vi) to increase the number of CVRs, solely for the purpose of distribution to holders of Parent Warrants pursuant to their terms; or

 (vii) any other amendments hereto for the purpose of adding, eliminating or changing any provisions of this Agreement, unless such
addition, elimination or change is adverse to the interests of the Holders. 
 (c) Promptly after the execution by Parent and the
Rights Agent of any amendment pursuant to the provisions of this Section 5.1, Parent will mail (or cause the Rights Agent to mail) a notice thereof by first class mail to each Holder at its address as it appears on the CVR Register, setting
forth such amendment. The failure to deliver such notice, or any defect in such notice, shall not impair or affect the validity of such amendment to this Agreement. 

5.2 Amendments with Consent of Holders. 

(a) Subject to Section 5.1 (which amendments pursuant to Section 5.1 may be made without the consent of the Holders), with the
consent of the Acting Holders, whether evidenced in writing or taken at a meeting of the Holders, Holders’ Representative, Parent, when authorized by a Board Resolution, and the Rights Agent may enter into one or more amendments hereto for the
purpose of adding, eliminating or changing any provisions of this Agreement, even if such addition, elimination or change is materially adverse to the interest of the Holders, including any amendment to effect any of the following: 

(i) modify in a manner adverse to the Holders (A) any provision contained herein with respect to the termination of this Agreement
or the CVRs, (B) the time for, and amount of, any payment to be made to the Holders pursuant to this Agreement, or (C) the definitions of Net Proceeds or Net Sales Proceeds, including related definitions, such as Gross Consideration,
Permitted Deductions, SARD Deal, SARD Technology, SARD Compound, SARD Product, SARM Deal, SARM Technology, SARM Compound and SARM Product; 

(ii) reduce the number of CVRs (except as provided in Section 5.1(b)(v)); or 

(iii) modify any provisions of this Section 5.2, except to increase the percentage of Holders from whom consent is required or to
provide that certain provisions of this Agreement cannot be modified or waived without the consent of the Holder of each outstanding CVR affected thereby. 

(b) Promptly after the execution by Parent, the Holders’ Representative and the Rights Agent of any amendment pursuant to the
provisions of this Section 5.2, Parent will mail (or cause the Rights Agent to mail) a notice thereof by first class mail to each Holder at its address as it appears on the CVR Register, setting forth such amendment. The failure to deliver such
notice, 

 
or any defect in such notice, shall not impair or affect the validity of such amendment to this Agreement. 

5.3 Execution of Amendments. In executing any amendment permitted by this Section 5, the Rights Agent will be entitled to
receive, and will be fully protected in relying upon, an opinion of counsel selected by Parent stating that the execution of such amendment is authorized or permitted by this Agreement. The Rights Agent may, but is not obligated to, enter into any
such amendment that affects the Rights Agent’s own rights, privileges, covenants or duties under this Agreement or otherwise. No supplement or amendment to this Agreement shall be effective unless duly executed by the Rights Agent. 

5.4 Effect of Amendments. Upon the execution of any amendment under this Section 5, this Agreement will be modified in
accordance therewith, such amendment will form a part of this Agreement for all purposes and every Holder will be bound thereby. 
  

	6.	 HOLDERS’ REPRESENTATIVE 

6.1 Appointment of Holders’ Representative. To the extent valid and binding under applicable law, the Holders’ Representative
is hereby appointed, authorized and empowered to be the exclusive representative, agent and attorney-in-fact of each Holder, with full power of substitution, to make all
decisions and determinations and to act (or not act) and execute, deliver and receive all agreements, documents, instruments and consents on behalf of and as agent for each Holder at any time in connection with, and that may be necessary or
appropriate to accomplish the intent and implement the provisions of this Agreement and to facilitate the consummation of the transactions contemplated hereby, including without limitation for purposes of (i) negotiating and settling, on behalf
of the Holders, any dispute that arises under this Agreement after the Effective Time, (ii) confirming the satisfaction of Parent’s obligations under this Agreement and (iii) negotiating and settling matters with respect to the
amounts to be paid to the Holders pursuant to this Agreement. 
 6.2 Authority. To the extent valid and binding under
applicable law, the appointment of the Holders’ Representative by the Holders upon the Effective Time is coupled with an interest and may not be revoked in whole or in part (including, without limitation, upon the death or incapacity of any
stockholder). Subject to the prior qualifications, such appointment shall be binding upon the heirs, executors, administrators, estates, personal representatives, officers, directors, security holders, successors and assigns of each Holder. To the
extent valid and binding under applicable law, all decisions of the Holders’ Representative shall be final and binding on all Holders. Parent and the Rights Agent shall be entitled to rely upon, without independent investigation, any act,
notice, instruction or communication from the Holders’ Representative and any document executed by the Holders’ Representative on behalf of any Holder and shall be fully protected in connection with any action or inaction taken or omitted
to be taken in reliance thereon, absent willful misconduct by Parent or the Rights Agent (as such willful misconduct is determined by a final, non-appealable judgment of a court of competent jurisdiction). The
Holders’ Representative shall not be responsible for any loss suffered by, or liability of any kind to, the Holders arising out of any act done or omitted by the Holders’ Representative in connection with

 
the acceptance or administration of the Holders’ Representative’s duties hereunder, unless such act or omission involves gross negligence or willful misconduct. 

6.3 Successor Holders’ Representative. The Holders’ Representative may be removed for any reason or no reason by written
consent of the Acting Holders. In the event that the Holders’ Representative dies, becomes unable to perform his or her responsibilities hereunder or resigns or is removed from such position, the Acting Holders shall be authorized to and shall
select another representative to fill such vacancy and such substituted representative shall be deemed to be the Holders’ Representative for all purposes of this Agreement. The newly-appointed Holders’ Representative shall notify Parent,
the Rights Agent and any other appropriate Person in writing of his or her appointment, provide evidence that the Acting Holders approved such appointment and provide appropriate contact information for purposes of this Agreement. Parent and the
Rights Agent shall be entitled to rely upon, without independent investigation, the identity and validity of such newly-appointed Holders’ Representative as set forth in such written notice. In the event that within 30 days after the
Holders’ Representative dies, becomes unable to perform his or her responsibilities hereunder or resigns or is removed from such position, no successor Holders’ Representative has been so selected, Parent shall cause the Rights Agent to
notify the Person holding the largest quantity of the outstanding CVRs (and who is not Parent or, to the Rights Agent’s actual knowledge, any Affiliate of Parent) that such Person is the successor Holders’ Representative, and such Person
shall be the successor Holders’ Representative hereunder. If such Person notifies the Rights Agent in writing that such Person declines to serve, the Rights Agent shall forthwith notify the Person holding the next-largest quantity of the
outstanding CVRs (and who is not Parent or, to the Rights Agent’s actual knowledge, any Affiliate of Parent) that such next-largest-quantity Person is the successor Holders’ Representative, and such next-largest-quantity Person shall be
the successor Holders’ Representative hereunder. (And so on, to the extent as may be necessary.) The Holders are intended third party beneficiaries of this Section 6.3. If a successor Holders’ Representative is not appointed pursuant
to the preceding procedure within 60 days after the Holders’ Representative dies, becomes unable to perform his or her responsibilities hereunder or resigns or is removed from such position, Parent shall appoint a successor Holders’
Representative. 
 6.4 Termination of Duties and Obligations. The Holders’ Representative’s duties and obligations
under this Agreement shall survive until no CVRs remain outstanding or until this Agreement expires or is terminated pursuant to Section 7.7(b), whichever is earlier. 
  

	7.	 OTHER PROVISIONS OF GENERAL APPLICATION 

7.1 Notices to Rights Agent, Parent and Holders’ Representative. All notices and other communications hereunder shall be in writing
and shall be deemed to have been duly delivered and received hereunder (a) one Business Day after being sent for next Business Day delivery, fees prepaid, via a reputable international overnight courier service, (b) upon delivery in the
case of delivery by hand, or (c) on the date delivered if sent by email (with a written or electronic confirmation of delivery) prior to 5:00 p.m. Pacific time, otherwise on the next succeeding Business Day, in each case to the intended
recipient as set forth below: 
 If to the Rights Agent, to it at: 

 Computershare Inc. 

480 Washington Boulevard 
 Jersey
City, NJ, 07310 
 Attn: Legal Department 

With a copy to: 
 Computershare Inc. 

480 Washington Blvd, 29th Floor 

Jersey City, NJ, 07310 
 Attn:
Corp Actions Relationship Manager 
 Or 

Computershare Inc. 
 150 Royall
Street, 2nd Floor 
 Canton, MA 02021 

Attn: Corp Actions Relationship Manager 
 If to
Parent, to it at: 
 GTX, Inc. 

12230 El Camino Real, Ste 300 

San Diego, California 92130 

Attn: James Breitmeyer, President & CEO 

Fax: (858) 408-3010 

With a copy to: 
 Latham & Watkins LLP

 12670 High Bluff Drive 
 San
Diego, CA 92130 
 Attention: Cheston J. Larson 

Email: cheston.larson@lw.com 
 If to the
Holders’ Representative, to him at: 
 Marc S. Hanover 

5597 St. Joseph Fairway 
 Memphis,
TN 38120 
 With a copy to: 
 Henry P.
Doggrell 
 495 Tennessee Street 

Apt. 701 

 Memphis, TN 38103 

The Rights Agent, Parent or the Holders’ Representative may specify a different address or electronic mail address by giving notice in accordance with
this Section 7.1. 
 7.2 Notice to Holders. Where this Agreement provides for notice to Holders, such notice will be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at the Holder’s address as it appears in the CVR Register, not later than the latest
date, and not earlier than the earliest date, if any, prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular
Holder will affect the sufficiency of such notice with respect to other Holders. 
 7.3 Parent Successors and Assigns; Merger of
Rights Agent. 
 (a) Parent may not assign this Agreement without the prior written consent of the Holders’ Representative,
provided that (a) Parent may assign, in its sole discretion and without the consent of any other party, any or all of its rights, interests and obligations hereunder to one or more direct or indirect wholly-owned subsidiaries of Parent (each,
an “Assignee”) provided that the Assignee agrees to assume and be bound by all of the terms of this Agreement; provided, however, that in connection with any assignment to an Assignee, Parent shall, and shall agree to, remain liable
for the performance by such Assignee of all obligations of Parent hereunder, with such Assignee substituted for Parent under this Agreement, and (b) Parent may assign this Agreement in its entirety without the consent of any other party to its
successor in interest in connection with the sale of all or substantially all of its assets or of its stock, or in connection with a merger, acquisition or similar transaction (such successor in interest, the “Acquiror”, and such
transaction, the “Acquisition”). This Agreement will be binding upon, inure to the benefit of and be enforceable by Parent’s successors, acquirers and each Assignee. Each reference to “Parent” in this Agreement shall
be deemed to include Parent’s successors, acquirers and all Assignees. Each of Parent’s successors, acquirers and assigns shall expressly assume by an instrument supplemental hereto, executed and delivered to the Rights Agent, the due and
punctual payment of the CVR Payments and the due and punctual performance and observance of all of the covenants and obligations of this Agreement to be performed or observed by Parent. 

(b) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any
Person resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the stock transfer or other shareholder services business of the Rights Agent or any successor
Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such Person would be eligible for appointment as a
successor Rights Agent under the provisions of the Agreement. The purchase of all or substantially all of the Rights Agent’s assets employed in the performance of transfer agent activities shall be deemed a merger or consolidation for purposes
of this Section 7.3(b). 

 7.4 Benefits of Agreement. Nothing in this Agreement, express or implied, will
give to any Person (other than the Rights Agent, Parent, Parent’s successors and assignees, and the Holders) any benefit or any legal or equitable right, remedy or claim under this Agreement or under any covenant or provision herein contained,
all such covenants and provisions being for the sole benefit of the Rights Agent, Parent, Parent’s successors and assignees, and the Holders. The rights of Holders are limited to those expressly provided in this Agreement and the Merger
Agreement. Notwithstanding anything to the contrary contained herein, any Holder may agree to renounce, in whole or in part, such Holder’s rights under this Agreement by written notice to the Rights Agent and Parent, which notice, if given,
shall be irrevocable. In such event, such Holder’s CVRs will not be included for determining the Payment Amounts to all other Holders. 

7.5 Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the
other provisions of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree shall remain in full force and effect to the extent not held invalid or unenforceable. The
parties further agree to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable
provision; provided, however, that if such excluded provision shall affect the rights, immunities, liabilities, duties or obligations of the Rights Agent, the Rights Agent shall be entitled to resign immediately upon written notice to the Parent.

 7.6 Counterparts and Signature. This Agreement may be executed in two or more counterparts (including by electronic scan
delivered by electronic mail), each of which shall be deemed an original but all of which together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the Parties hereto and
delivered to the other Party, it being understood that the Parties need not sign the same counterpart. 
 7.7 Termination. 

(a) This Agreement will expire and be of no force or effect, the Parties hereto will have no liability hereunder (other than with
respect to monies due and owing by Parent to Rights Agent or any other rights of the Rights Agent which expressly survive the termination of this Agreement), and no additional payments will be required to be made, upon the payment of the full amount
of all CVR Payments to the Rights Agent and the payment of the full amount of all Payment Amounts to the Holders by the mailing by the Rights Agent of each applicable Payment Amount to each Holder at the address reflected in the CVR Register. 

(b) This Agreement will terminate automatically upon termination of the Merger Agreement prior to the Effective Time. 

7.8 Funds. All funds received by the Rights Agent under this Agreement that are to be distributed or applied by the Rights Agent
in the performance of services hereunder (the “Funds”) shall be held by the Rights Agent as agent for the Parent and deposited in one or more bank accounts to be maintained by the Rights Agent in its name as agent for the Parent.
Until paid pursuant to the terms of this Agreement, the Rights Agent will hold the Funds through such accounts in: deposit accounts of commercial banks with Tier 1 capital exceeding $1 billion or with

 
an average rating above investment grade by S&P (LT Local Issuer Credit Rating), Moody’s (Long Term Rating) and Fitch Ratings, Inc. (LT Issuer Default Rating) (each as reported by
Bloomberg Finance L.P.). The Rights Agent shall have no responsibility or liability for any diminution of the Funds that may result from any deposit made by the Rights Agent in accordance with this paragraph, including any losses resulting from a
default by any bank, financial institution or other Third Party. The Rights Agent may from time to time receive interest, dividends or other earnings in connection with such deposits. The Rights Agent shall not be obligated to pay such interest,
dividends or earnings to the Parent, any Holder or any other party. 
 7.9 Entire Agreement. Notwithstanding the reference to
any other agreement hereunder, this Agreement contains the entire understanding of the parties hereto and thereto with reference to the transactions and matters contemplated hereby and thereby and supersedes all prior agreements, written or oral,
among the parties with respect hereto and thereto. If and to the extent that any provision of this Agreement is inconsistent or conflicts with the Merger Agreement, this Agreement will govern and control. 

7.10 Applicable Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the State
of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws. In any action or proceeding between the Parties arising out of or relating to this Agreement, each Party: (a) irrevocably and
unconditionally consents and submits to the exclusive jurisdiction and venue of the Court of Chancery of the State of Delaware or, to the extent such court does not have subject matter jurisdiction, the United States District Court for the District
of Delaware or, to the extent that neither of the foregoing courts has jurisdiction, the Superior Court of the State of Delaware; (b) agrees that all claims in respect of such action or proceeding shall be heard and determined exclusively in
accordance with clause (a) of this Section 7.9; (c) waives any objection to laying venue in any such action or proceeding in such courts; (d) waives any objection that such courts are an inconvenient forum or do not have
jurisdiction over any party; (e) agrees that service of process upon such party in any such action or proceeding shall be effective if notice is given in accordance with Section 7.1 of this Agreement; and (f) irrevocably and
unconditionally waives the right to trial by jury. 
 {Remainder of page intentionally left blank} 

 IN WITNESS WHEREOF, each of the Parties has caused this Contingent Value Rights Agreement to be executed on
its behalf by its duly authorized officers, and the Holders’ Representative has executed this Contingent Value Rights Agreement, as of the day and year first above written. 

 

			
	 GTX, INC. 

		
	By:	 	 /s/ Henry Doggrell

	Name:	 	Henry Doggrell
	Title:	 	Vice President, Chief Legal Officer and Secretary

  

			
	 COMPUTERSHARE INC.

		
	By:	 	 /s/ Colin Ekeogu

	Name:	 	Colin Ekeogu
	Title:	 	Manager, Corporate Actions

  

			
	 COMPUTERSHARE TRUST COMPANY,
N.A.

		
	By:	 	 /s/ Colin Ekeogu

	Name:	 	Colin Ekeogu
	Title:	 	Manager, Corporate Actions

  

			
	 MARC S. HANOVER

		
	By:	 	 /s/ Marc S. HanoverExhibit 4.1

 

TARGET GROUP INC.

 

2019 EQUITY INCENTIVE PLAN

 

SECTION 1. PURPOSE

 

The purpose of the Target Group Inc. 2019
Equity Incentive Plan is to attract, retain and motivate employees, officers, directors, consultants, agents, advisors and independent
contractors of the Company and its Related Companies by providing them with the opportunity to acquire a proprietary interest in
the Company and to align their interests and efforts to the long-term interests of the Company's stockholders.

 

SECTION 2. DEFINITIONS

 

Certain capitalized terms used in the Plan have the meanings
set forth in Appendix A.

 

SECTION 3. ADMINISTRATION

 

		3.1	Administration of the Plan

 

(a)       The
Plan shall be administered by the Board

 

(b)       The
Board may delegate concurrent responsibility for administering the Plan, including with respect to designated classes of Eligible
Persons, to different committees consisting of one or more members of the Board, subject to such limitations as the Board deems
appropriate or granted pursuant to Section 16 of the Plan. Members of any committee shall serve for such term as the Board may
determine, subject to removal by the Board at any time. To the extent consistent with applicable law, the Board or the Compensation
Committee may authorize one or more executive officers of the Company to grant Awards to designated classes of Eligible Persons,
within limits specifically prescribed by the Board or the Compensation Committee; provided, however, that no such officer shall
have or obtain authority to grant Awards to himself or herself or to grant Awards pursuant to Section 16 of the Plan.

 

(c)       All
references in the Plan to the "Committee" shall be, as applicable, to the Board, the Compensation Committee
or any other committee or executive officer to whom authority has been delegated to administer the Plan.

 

		3.2	Administration and Interpretation by Committee

 

(a)       Except
for the terms and conditions explicitly set forth in the Plan and to the extent permitted by applicable law, the Committee shall
have full power and exclusive authority, subject to such orders or resolutions not inconsistent with the provisions of the Plan
as may from time to time be adopted by the Board or a Committee composed of members of the Board, to (i) select the Eligible
Persons to whom Awards may from time to time be granted under the Plan; (ii) determine the type or types of Awards to be granted
to each Participant under the Plan; (iii) determine the number of shares of Common Stock to be covered by each Award granted
under the Plan; (iv) determine the terms and conditions of any Award granted under the Plan; (v) approve the forms of
notice or agreement for use under the Plan; (vi) amend, modify, suspend, discontinue or terminate the Plan, waive any restrictions
or conditions applicable to an Award or amend or modify the terms and conditions of an outstanding Award; (vii) determine
whether, to what extent and under what circumstances Awards may be settled in cash, shares of Common Stock or other property or
canceled or suspended; (viii) interpret and administer the Plan and any instrument evidencing an Award, notice or agreement
executed or entered into under the Plan; (ix) establish such rules and regulations as it shall deem appropriate for the proper
administration and operation of the Plan; (x) delegate ministerial duties to such of the Company's employees as it so determines;
and (xi) make any other determination and take any other action that the Committee deems necessary or desirable for administration
of the Plan.

 

    	 	-1-	 

     

    

 

(b)       The
effect on the vesting of an Award of a Company-approved leave of absence or a Participant's reduction in hours of employment or
service shall be determined by the Company's chief human resources officer or other person performing that function or, with respect
to directors or executive officers, by the Compensation Committee, whose determination shall be final.

 

(c)       Decisions
of the Committee shall be final, conclusive and binding on all persons, including the Company, any Participant, any stockholder
and any Eligible Person. A majority of the members of the Committee may determine its actions.

 

SECTION 4. SHARES SUBJECT TO
THE PLAN

 

		4.1	Authorized Number of Shares

 

Subject to adjustment
from time to time as provided in Section 15.1, a maximum of 15,000,000 shares of Common Stock shall be available for issuance
under the Plan. Shares issued under the Plan shall be drawn from authorized and unissued shares or shares now held or subsequently
acquired by the Company as treasury shares.

 

		4.2	Share Usage

 

(a)       If
any Award lapses, expires, terminates or is canceled prior to the issuance of shares thereunder or if shares of Common Stock are
issued under the Plan to a Participant and thereafter are forfeited to the Company, the shares subject to such Awards and the forfeited
shares shall again be available for issuance under the Plan. Any shares of Common Stock (i) tendered by a Participant or retained
by the Company as full or partial payment to the Company for the purchase price of an Award or to satisfy tax withholding obligations
in connection with an Award, or (ii) covered by an Award that is settled in cash, or in a manner such that some or all of
the shares of Common Stock covered by the Award are not issued, shall be available for Awards under the Plan. The number of shares
of Common Stock available for issuance under the Plan shall not be reduced to reflect any dividends or dividend equivalents that
are reinvested into additional shares of Common Stock or credited as additional shares of Common Stock subject or paid with respect
to an Award.

 

(b)       The
Committee shall also, without limitation, have the authority to grant Awards as an alternative to or as the form of payment for
grants or rights earned or due under other compensation plans or arrangements of the Company.

 

    	 	-2-	 

     

    

 

(c)       Notwithstanding
any other provision of the Plan to the contrary, the Committee may grant Substitute Awards under the Plan. Substitute Awards shall
not reduce the number of shares authorized for issuance under the Plan. In the event that an Acquired Entity has shares available
for awards or grants under one or more preexisting plans not adopted in contemplation of such acquisition or combination and previously
approved by the Acquired Entity's stockholders, then, to the extent determined by the Board or the Compensation Committee, the
shares available for grant pursuant to the terms of such preexisting plans (as adjusted, to the extent appropriate, using the exchange
ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration
payable to holders of securities of the entities that are parties to such acquisition or combination) may be used for Awards under
the Plan and shall not reduce the number of shares of Common Stock authorized for issuance under the Plan; provided, however, that
Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of such
preexisting plans, absent the acquisition or combination, and shall only be made to individuals who were not employees or directors
of the Company or a Related Company prior to such acquisition or combination. In the event that a written agreement between the
Company and an Acquired Entity pursuant to which a merger or consolidation is completed is approved by the Board and that agreement
sets forth the terms and conditions of the substitution for or assumption of outstanding awards of the Acquired Entity, those terms
and conditions shall be deemed to be the action of the Committee without any further action by the Committee, except as may be
required for compliance with Rule 16b-3 under the Exchange Act, and the persons holding such awards shall be deemed to be
Participants.

 

(d)         Notwithstanding
any other provision of this Section 4.2 to the contrary, the maximum number of shares that may be issued upon the exercise
of Incentive Stock Options shall equal the aggregate share number stated in Section 4.1, subject to adjustment as provided
in Section 15.1.

 

		4.3	Limits on Awards to Non-Employee Directors

 

Notwithstanding
any provision in the Plan to the contrary, the aggregate amount of all compensation paid or granted during any calendar year to
any member of the Board who is not an employee of the Company or a Related Company, including any Awards (based on grant date fair
value computed as of the Grant Date in accordance with applicable financial accounting rules) and any cash retainer or meeting
fee paid or provided for service on the Board or any committee thereof, or any Award granted in lieu of any such cash retainer
or meeting fee, shall not exceed $350,000 in value, plus an additional $350,000 in value in compensation to a newly appointed or
elected non-employee member of the Board.

 

SECTION 5. ELIGIBILITY

 

An Award may be granted
to any employee, officer or director of the Company or a Related Company whom the Committee from time to time selects. An Award
may also be granted to any consultant, agent, advisor or independent contractor for bona fide services rendered to the Company
or any Related Company that (a) are not in connection with the offer and sale of the Company's securities in a capital-raising
transaction and (b) do not directly or indirectly promote or maintain a market for the Company's securities.

 

SECTION 6. AWARDS

 

		6.1	Form, Grant and Settlement of Awards

 

The Committee shall have the authority, in its sole discretion,
to determine the type or types of Awards to be granted under the Plan. Such Awards may be granted either alone or in addition to
or in tandem with any other type of Award. Any Award settlement may be subject to such conditions, restrictions and contingencies
as the Committee shall determine.

 

    	 	-3-	 

     

    

 

		6.2	Evidence of Awards

 

Awards granted under the Plan shall be evidenced by a written,
including an electronic, instrument that shall contain such terms, conditions, limitations and restrictions as the Committee shall
deem advisable and that are not inconsistent with the Plan.

 

		6.3	Dividends and Distributions

 

Participants may, if the Committee so determines, other than
with respect to Options or Stock Appreciation Rights, be credited with dividends or dividend equivalents for dividends paid with
respect to shares of Common Stock underlying an Award in a manner determined by the Committee in its sole discretion; provided,
however, that with respect to Awards that are subject to achievement of performance goals, any such credited dividends or dividend
equivalents may be paid only with respect to the portion of such Awards that is actually earned. The Committee may apply any restrictions
to the dividends or dividend equivalents that the Committee deems appropriate. The Committee, in its sole discretion, may determine
the form of payment of dividends or dividend equivalents, including cash, shares of Common Stock, Restricted Stock or Stock Units.
Also notwithstanding the foregoing, the right to any dividends or dividend equivalents declared and paid on Awards must comply
with or qualify for an exemption under Section 409A.

 

SECTION 7. OPTIONS

 

		7.1	Grant of Options

 

The Committee may grant Options designated as Incentive Stock
Options or Nonqualified Stock Options.

 

		7.2	Option Exercise Price

 

Options shall be granted with an exercise
price per share not less than 100% of the Fair Market Value of the Common Stock on the Grant Date (and such exercise price shall
not be less than the minimum exercise price required by Section 422 of the Code with respect to Incentive Stock Options), except
in the case of Substitute Awards.

 

		7.3	Term of Options

 

Subject to earlier termination in accordance
with the terms of the Plan and the instrument evidencing the Option, the maximum term of an Option shall be ten years from the
Grant Date. For Incentive Stock Options, the maximum term shall comply with Section 422 of the Code.

 

		7.4	Exercise of Options

 

(a)          The
Committee shall establish and set forth in each instrument that evidences an Option the time at which, or the installments in which,
the Option shall vest and become exercisable.

 

(b)          To
the extent an Option has vested and become exercisable, the Option may be exercised in whole or from time to time in part by delivery
to the Company or a brokerage firm designated or approved by the Company of a properly executed stock option exercise agreement
or notice, in a form and in accordance with procedures established by the Committee, setting forth the number of shares with respect
to which the Option is being exercised, the restrictions imposed on the shares purchased under such exercise agreement or notice,
if any, and such representations and agreements as may be required by the Committee, accompanied by payment in full as described
in Section 7.5. An Option may be exercised only for whole shares and may not be exercised for less than a reasonable number
of shares at any one time, as determined by the Committee.

 

    	 	-4-	 

     

    

 

		7.5	Payment of Exercise Price

 

The exercise price for shares purchased
under an Option shall be paid in full to the Company by delivery of consideration equal to the product of the Option exercise price
and the number of shares purchased. Such consideration must be paid before the Company will issue the shares being purchased and
must be in a form or a combination of forms acceptable to the Committee for that purchase, which forms may include:

 

(a)          cash;

 

(b)          check
or wire transfer;

 

(c)          having
the Company withhold shares of Common Stock that would otherwise be issued on exercise of the Option that have an aggregate Fair
Market Value equal to the aggregate exercise price of the shares being purchased under the Option;

 

(d)          tendering
(either actually or, so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, by attestation)
shares of Common Stock owned by the Participant that have an aggregate Fair Market Value equal to the aggregate exercise price
of the shares being purchased under the Option;

 

(e)          so
long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, and to the extent permitted by law,
delivery of a properly executed exercise agreement or notice, together with irrevocable instructions to a brokerage firm designated
or approved by the Company to deliver promptly to the Company the aggregate amount of proceeds to pay the Option exercise price
and any withholding tax obligations that may arise in connection with the exercise, all in accordance with the regulations of the
Federal Reserve Board; or

 

(f)           such
other consideration as the Committee may permit.

 

		7.6	Effect of Termination of Service

 

The Committee shall establish and set forth
in each instrument that evidences an Option whether the Option shall continue to be exercisable, and the terms and conditions of
such exercise, after a Termination of Service, any of which provisions may be waived or modified by the Committee at any time.
If not otherwise established in the instrument evidencing the Option, the Option shall be exercisable according to the following
terms and conditions, which may be waived or modified by the Committee at any time:

 

(a)          Any
portion of an Option that is not vested and exercisable on the date of a Participant's Termination of Service shall expire on such
date.

 

(b)          Any
portion of an Option that is vested and exercisable on the date of a Participant's Termination of Service shall expire on the earliest
to occur of:

 

(i)       if
the Participant's Termination of Service occurs for reasons other than Cause, Disability or death, the date that is three months
after such Termination of Service;

 

    	 	-5-	 

     

    

 

(ii)       if
the Participant's Termination of Service occurs by reason of Disability or death, the one-year anniversary of such Termination
of Service; and

 

(iii)       the
Option Expiration Date.

 

Notwithstanding the foregoing, if a Participant
dies after his or her Termination of Service but while an Option is otherwise exercisable, the portion of the Option that is vested
and exercisable on the date of such Termination of Service shall expire upon the earlier to occur of (y) the Option Expiration
Date and (z) the one-year anniversary of the date of death, unless the Committee determines otherwise.

 

Also notwithstanding the foregoing, in
case a Participant's Termination of Service occurs for Cause, all Options granted to the Participant shall automatically expire
upon first notification to the Participant of such termination, unless the Committee determines otherwise. If a Participant's employment
or service relationship with the Company is suspended pending an investigation of whether the Participant shall be terminated for
Cause, all the Participant's rights under any Option shall likewise be suspended during the period of investigation. If any facts
that would constitute termination for Cause are discovered after a Participant's Termination of Service, any Option then held by
the Participant may be immediately terminated by the Committee, in its sole discretion.

 

(c)          Notwithstanding
the foregoing, if exercise of the Option following a Participant's Termination of Service, but while the Option is otherwise exercisable,
would be prohibited solely because the issuance of Common Stock upon exercise of the Option would violate the registration requirements
under the Securities Act or similar requirements under the laws of any state or foreign jurisdiction, then the Option shall remain
exercisable until the earlier of (i) the Option Expiration Date and (ii) the expiration of a total period of three months (or such
longer period of time as determined by the Committee in its sole discretion), which time period need not be consecutive, after
the Participant's Termination of Service during which exercise of the Option would not be in violation of the Securities Act or
other requirements.

 

SECTION 8. INCENTIVE STOCK OPTION LIMITATIONS

 

Notwithstanding any other provision of
the Plan to the contrary, the terms and conditions of any Incentive Stock Options shall in addition comply in all respects with
Section 422 of the Code, or any successor provision, and any applicable regulations thereunder, including, to the extent required
thereunder, the following:

 

		8.1	Eligible Employees

 

Individuals who are not employees of the
Company or one of its parent or subsidiary corporations (as such terms are defined for purposes of Section 422 of the Code) on
the Grant Date may not be granted Incentive Stock Options.

 

		8.2	Dollar Limitation

 

To the extent the aggregate Fair Market Value of Common Stock
with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year exceeds
$100,000 (or, if different, the maximum limitation in effect at the time of grant under the Code), such portion in excess of $100,000
shall be treated as a Nonqualified Stock Option.

 

    	 	-6-	 

     

    

 

		8.3	Ten Percent Stockholders

 

In the case of an Incentive Stock Option
granted to a Participant who owns more than 10% of the total combined voting power of all classes of the stock of the Company or
of its parent or subsidiary corporations (a "Ten Percent Stockholder"), such Option shall be granted with
an exercise price per share not less than 110% of the Fair Market Value of the Common Stock on the Grant Date and with a maximum
term of five years from the Grant Date. The determination of more than 10% ownership shall be made in accordance with Section 422
of the Code.

 

SECTION 9. STOCK APPRECIATION
RIGHTS

 

		9.1	Grant of Stock Appreciation Rights

 

The Committee may grant Stock Appreciation
Rights to Participants at any time on such terms and conditions as the Committee shall determine in its sole discretion. An SAR
may be granted in tandem with an Option (a "tandem SAR") or alone (a "freestanding SAR").
The grant price of a tandem SAR shall be equal to the exercise price of the related Option. The grant price of a freestanding SAR
shall be established in accordance with procedures for Options set forth in Section 7.2. An SAR may be exercised upon such
terms and conditions and for such term as the Committee determines in its sole discretion; provided, however, that, subject to
earlier termination in accordance with the terms of the Plan and the instrument evidencing the SAR, the maximum term of a freestanding
SAR shall be ten years, and in the case of a tandem SAR, (a) the term shall not exceed the term of the related Option and (b) the
tandem SAR may be exercised for all or part of the shares subject to the related Option upon the surrender of the right to exercise
the equivalent portion of the related Option, except that the tandem SAR may be exercised only with respect to the shares for which
its related Option is then exercisable.

 

		9.2	Payment of SAR Amount

 

Upon the exercise of an SAR, a Participant
shall be entitled to receive payment in an amount determined by multiplying: (a) the excess of the Fair Market Value of the
Common Stock on the date of exercise over the grant price of the SAR by (b) the number of shares with respect to which the SAR
is exercised. At the discretion of the Committee as set forth in the instrument evidencing the Award, the payment upon exercise
of an SAR may be in cash, in shares, in some combination thereof or in any other manner approved by the Committee in its sole discretion.

 

SECTION 10. STOCK AWARDS, RESTRICTED STOCK AND
STOCK UNITS

 

		10.1	Grant of Stock Awards, Restricted Stock and Stock Units

 

The Committee may grant Stock Awards, Restricted
Stock and Stock Units on such terms and conditions and subject to such repurchase or forfeiture restrictions, if any, which may
be based on continuous employment or service with the Company or a Related Company or the achievement of any performance goals,
as the Committee shall determine in its sole discretion, which terms, conditions and restrictions shall be set forth in the instrument
evidencing the Award.

 

		10.2	Vesting of Restricted Stock and Stock Units

 

Upon the satisfaction of any terms, conditions
and restrictions prescribed with respect to Restricted Stock or Stock Units, or upon a Participant's release from any terms, conditions
and restrictions on Restricted Stock or Stock Units, as determined by the Committee, (a) the shares covered by each Award of Restricted
Stock shall become freely transferable by the Participant, and (b) Stock Units shall be paid in shares of Common Stock or, if set
forth in the instrument evidencing the Awards, in cash or a combination of cash and shares of Common Stock. Any fractional shares
subject to such Awards shall be paid to the Participant in cash.

 

    	 	-7-	 

     

    

 

SECTION 11. PERFORMANCE AWARDS

 

		11.1	Performance Shares

 

The Committee may grant Awards of Performance
Shares, designate the Participants to whom Performance Shares are to be awarded and determine the number of Performance Shares
and the terms and conditions of each such Award. Performance Shares shall consist of a unit valued by reference to a designated
number of shares of Common Stock, the value of which may be paid to the Participant by delivery of shares of Common Stock or, if
set forth in the instrument evidencing the Award, of such property as the Committee shall determine, including, without limitation,
cash, shares of Common Stock, other property, or any combination thereof, upon the attainment of performance goals, as established
by the Committee, and other terms and conditions specified by the Committee. The amount to be paid under an Award of Performance
Shares may be adjusted on the basis of such further consideration as the Committee shall determine in its sole discretion.

 

		11.2	Performance Units

 

The Committee may grant Awards of Performance
Units, designate the Participants to whom Performance Units are to be awarded and determine the number of Performance Units and
the terms and conditions of each such Award. Performance Units shall consist of a unit valued by reference to a designated amount
of property other than shares of Common Stock, which value may be paid to the Participant by delivery of such property as the Committee
shall determine, including, without limitation, cash, shares of Common Stock, other property, or any combination thereof, upon
the attainment of performance goals, as established by the Committee, and other terms and conditions specified by the Committee.
The amount to be paid under an Award of Performance Units may be adjusted on the basis of such further consideration as the Committee
shall determine in its sole discretion.

 

SECTION 12. OTHER STOCK OR
CASH-BASED AWARDS

 

Subject to the terms of the Plan and such
other terms and conditions as the Committee deems appropriate, the Committee may grant other incentives payable in cash or in shares
of Common Stock under the Plan.

 

SECTION 13. WITHHOLDING

 

(a)          The
Company may require the Participant to pay to the Company or a Related Company, as applicable, the amount of (i) any taxes that
the Company or a Related Company is required by applicable federal, state, local or foreign law to withhold with respect to the
grant, vesting or exercise of an Award ("tax withholding obligations") and (ii) any amounts due from the
Participant to the Company or any Related Company ("other obligations"). Notwithstanding any other provision
of the Plan to the contrary, the Company shall not be required to issue any shares of Common Stock or otherwise settle an Award
under the Plan until such tax withholding obligations and other obligations are satisfied.

 

(b)          The
Committee, its sole discretion, may permit or require a Participant to satisfy all or part of the Participant's tax withholding
obligations and other obligations by (i) paying cash to the Company or a Related Company, as applicable, (ii) having
the Company withhold an amount from any cash amounts otherwise due or to become due from the Company or a Related Company to the
Participant, (iii) having the Company withhold a number of shares of Common Stock that would otherwise be issued to the Participant
(or become vested, in the case of Restricted Stock) having a Fair Market Value equal to the tax withholding obligations and other
obligations, (iv) surrendering a number of shares of Common Stock the Participant already owns having a value equal to the
tax withholding obligations and other obligations, (v) selling shares of Common Stock issued under an Award on the open market
or to the Company, or (vi) taking such other action as may be necessary in the opinion of the Committee to satisfy any applicable
tax withholding obligations. The value of the shares so withheld or tendered may not exceed the employer's applicable minimum required
tax withholding rate or such other rate as is permitted under applicable law or regulation that does not result in adverse treatment
for financial accounting purposes, as determined by the Committee in its sole discretion.

 

    	 	-8-	 

     

    

 

SECTION 14. ASSIGNABILITY

 

No Award or interest in an Award may be
sold, assigned, pledged (as collateral for a loan or as security for the performance of an obligation or for any other purpose)
or transferred by a Participant or made subject to attachment or similar proceedings otherwise than by will or by the applicable
laws of descent and distribution, except to the extent the Participant designates one or more beneficiaries on a Company-approved
form who may exercise the Award or receive payment under the Award after the Participant's death. During a Participant's lifetime,
an Award may be exercised only by the Participant. Notwithstanding the foregoing, and to the extent permitted by Section 422
of the Code, the Committee, in its sole discretion, may permit a Participant to assign or transfer an Award subject to such terms
and conditions as the Committee shall specify.

 

SECTION 15. ADJUSTMENTS

 

		15.1	Adjustment of Shares

 

(a)          In
the event, at any time or from time to time, a stock dividend, stock split, spin-off, combination or exchange of shares, recapitalization,
merger, consolidation, distribution to stockholders other than a normal cash dividend, or other change in the Company's corporate
or capital structure results in (i) the outstanding shares of Common Stock, or any securities exchanged therefor or received
in their place, being exchanged for a different number or kind of securities of the Company or (ii) new, different or additional
securities of the Company or any other company being received by the holders of shares of Common Stock, then the Committee shall
make proportional adjustments in (1) the maximum number and kind of securities available for issuance under the Plan; (2) the
maximum number and kind of securities issuable as Incentive Stock Options as set forth in Section 4.2(d); (3) the maximum
numbers and kind of securities set forth in Section 16.3; and (4) the number and kind of securities that are subject to any
outstanding Award and the per share price of such securities. The determination by the Committee as to the terms of any of the
foregoing adjustments shall be conclusive and binding.

 

(b)          The
Committee may also make adjustments as described in Section 15.1(a)(1)-(4) in the event of any distribution of assets or cash to
stockholders other than a normal cash dividend. In determining adjustments to be made under this Section 15.1(b), the Committee
may take into account such factors as it deems appropriate, including (i) the restrictions of applicable law, (ii) the potential
tax and accounting consequences of an adjustment and (iii) the possibility that some Participants might receive an adjustment and
a distribution or other unintended benefit, and in light of such factors or circumstances may make adjustments that are not uniform
or proportionate among outstanding Awards, modify vesting dates, defer the delivery of stock certificates or make other equitable
adjustments. Any such adjustments to outstanding Awards shall be effected in a manner that precludes the enlargement of rights
and benefits under such Awards.

 

    	 	-9-	 

     

    

 

(c)          Adjustments,
if any, and any determinations or interpretations, including any determination of whether a distribution is other than a normal
cash dividend, made by the Committee, as to the terms of any of the foregoing adjustments, shall be conclusive and binding. Notwithstanding
the foregoing, the issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any
class, for cash or property, or for labor or services rendered, either upon direct sale or upon the exercise of rights or warrants
to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other securities,
shall not affect, and no adjustment by reason thereof shall be made with respect to, outstanding Awards. Also notwithstanding the
foregoing, a dissolution or liquidation of the Company or a Change in Control shall not be governed by this Section 15.1 but
shall be governed by Sections 15.2 and 15.3, respectively.

 

		15.2	Dissolution or Liquidation

 

To the extent not previously exercised
or settled, and unless otherwise determined by the Committee in its sole discretion, Awards shall terminate immediately prior to
the dissolution or liquidation of the Company. To the extent a vesting condition, forfeiture provision or repurchase right applicable
to an Award has not been waived by the Committee, the Award shall be forfeited immediately prior to the consummation of the dissolution
or liquidation.

 

		15.3	Change in Control

 

Notwithstanding any other provision of
the Plan to the contrary, unless the Committee shall determine otherwise in the instrument evidencing the Award or in a written
employment, services or other agreement between the Participant and the Company or a Related Company, in the event of a Change
in Control:

 

(a)          If
the Change in Control is a Company Transaction in which Awards, other than Performance Shares and Performance Units or other performance-based
Awards, could be converted, assumed, substituted for or replaced by the Successor Company, then, if and to the extent that the
Successor Company converts, assumes, substitutes or replaces an Award, the vesting restrictions and/or forfeiture provisions applicable
to such Award shall not be accelerated or lapse, and all such vesting restrictions and/or forfeiture provisions shall continue
with respect to any shares of the Successor Company or other consideration that may be received with respect to such Award. If
and to the extent that such Awards are not converted, assumed, substituted for or replaced by the Successor Company in such Company
Transaction or the Change in Control is not a Company Transaction in which Awards could be converted, assumed, substituted for
or replaced by the Successor Company, such outstanding Awards shall become fully vested and exercisable or payable, and all applicable
restrictions or forfeiture provisions shall lapse, immediately prior to the Change in Control and such Awards shall terminate at
the effective time of the Change in Control.

 

For the purposes of this Section 15.3(a),
an Award shall be considered converted, assumed, substituted for or replaced by the Successor Company if following the Change in
Control the option or right confers the right to purchase or receive, for each share of Common Stock subject to the Award immediately
prior to the Change in Control, the consideration (whether stock, cash or other securities or property) received in the Change
in Control by holders of Common Stock for each share held on the effective date of the transaction (and if holders were offered
a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided,
however, that if such consideration received in the Change in Control is not solely common stock of the Successor Company, the
Committee may, with the consent of the Successor Company, provide for the consideration to be received pursuant to the Award, for
each share of Common Stock subject thereto, to be solely common stock of the Successor Company substantially equal in fair market
value to the per share consideration received by holders of Common Stock in the Change in Control. The determination of such substantial
equality of value of consideration shall be made by the Committee, and its determination shall be conclusive and binding.

 

    	 	-10-	 

     

    

 

(b)          All
Performance Shares, Performance Units or other performance-based Awards earned and outstanding as of the date the Change in Control
is determined to have occurred and for which the payout level has been determined shall be payable in full in accordance with the
payout schedule pursuant to the instrument evidencing the Award. Any remaining outstanding Performance Shares, Performance Units
or other performance-based Awards (including any applicable performance period) for which the payout level has not been determined
shall be prorated at the target payout level up to and including the date of such Change in Control and shall be payable in accordance
with the payout schedule pursuant to the instrument evidencing the Award. Any existing deferrals or other restrictions not waived
by the Committee in its sole discretion shall remain in effect.

 

(c)          Notwithstanding
the foregoing, the Committee, in its sole discretion, may instead provide in the event of a Change in Control that a Participant's
outstanding Awards shall terminate upon or immediately prior to such Change in Control and that such Participant shall receive,
in exchange therefor, a cash payment equal to the amount (if any) by which (x) the value of the per share consideration received
by holders of Common Stock in the Change in Control, or, in the event the Change in Control is one of the transactions listed under
subsection (c) in the definition of Change in Control or otherwise does not result in direct receipt of consideration by holders
of Common Stock, the value of the deemed per share consideration received, in each case as determined by the Committee in its sole
discretion, multiplied by the number of shares of Common Stock subject to such outstanding Awards (to the extent then vested and
exercisable or whether or not then vested and exercisable, as determined by the Committee in its sole discretion) exceeds (y) if
applicable, the respective aggregate exercise price or grant price for such Awards.

 

(d)          Subject
to the foregoing provisions of this Section 15.3 (including accelerated vesting of certain Awards in the event they are not converted,
assumed, substituted for or replaced in a Change in Control by a Successor Company), in the event of a Change in Control, the Plan
Administrator shall be authorized to take such action as it determines with respect to outstanding Awards, including, but not limited
to the following: (i) provide that Awards shall be converted, assumed, substituted for or replaced with awards by the Successor
Company with appropriate adjustments as to the amount and kind of securities subject thereto and the applicable purchase prices
thereof; (ii) provide that Awards shall vest and become exercisable or payable, and all applicable restrictions or forfeiture provisions
shall lapse, in whole or in part immediately prior to or upon consummation of the Change in Control, and such Awards shall then
terminate upon or immediately prior to the Change in Control; (iii) provide that Awards shall be terminated pursuant to the terms
of Section 15.3(c); or (iv) provide for any combination of the foregoing.

 

(e)          For
the avoidance of doubt, nothing in this Section 15.3 requires all outstanding Awards to be treated similarly.

 

		15.4	Further Adjustment of Awards

 

Subject to Sections 15.2 and 15.3,
the Committee shall have the discretion, exercisable at any time before a sale, merger, consolidation, statutory share exchange,
reorganization, liquidation, dissolution or change in control of the Company, as defined by the Committee, to take such further
action as it determines to be necessary or advisable with respect to Awards. Such authorized action may include (but shall not
be limited to) establishing, amending or waiving the type, terms, conditions or duration of, or restrictions on, Awards so as to
provide for earlier, later, extended or additional time for exercise, lifting restrictions and other modifications, and the Committee
may take such actions with respect to all Participants, to certain categories of Participants or only to individual Participants.
The Committee may take such action before or after granting Awards to which the action relates and before or after any public announcement
with respect to such sale, merger, consolidation, statutory share exchange, reorganization, liquidation, dissolution or change
in control that is the reason for such action.

 

    	 	-11-	 

     

    

 

		15.5	No Limitations

 

The grant of Awards shall in no way affect
the Company's right to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate,
dissolve, liquidate or sell or transfer all or any part of its business or assets.

 

		15.6	No Fractional Shares

 

In the event of any adjustment in the number
of shares covered by any Award, each such Award shall cover only the number of full shares resulting from such adjustment, and
any fractional shares resulting from such adjustment shall be disregarded.

 

		15.7	Section 409A

 

Notwithstanding any other provision of
the Plan to the contrary, (a) any adjustments made pursuant to this Section 15 to Awards that are considered "deferred
compensation" within the meaning of Section 409A shall be made in compliance with the requirements of Section 409A
and (b) any adjustments made pursuant to this Section 15 to Awards that are not considered "deferred compensation"
subject to Section 409A shall be made in such a manner as to ensure that after such adjustment the Awards either (i) continue
not to be subject to Section 409A or (ii) comply with the requirements of Section 409A.

 

SECTION 16. CODE SECTION 162(m) PROVISIONS

 

Notwithstanding
any other provision of the Plan to the contrary, if the Committee determines, at the time an Award is granted to a Participant
who is, or is likely to be as of the end of the tax year in which the Company would claim a tax deduction in connection with such
Award, a Covered Employee, then the Committee may provide that this Section 16 is applicable to such Award.

 

		16.1	Performance Criteria

 

(a)           If
an Award is subject to this Section 16, then the lapsing of restrictions thereon and the distribution of cash, shares of Common
Stock or other property pursuant thereto, as applicable, shall be subject to the achievement of one or more objective performance
goals established by the Committee, which shall be based on the attainment of specified levels of one of or any combination of
the following "performance criteria" for the Company as a whole or any affiliate or business unit of the Company, as
reported or calculated by the Company: cash flows (including, but not limited to, operating cash flow, free cash flow or cash flow
return on capital); working capital; earnings per share; book value per share; operating income (including or excluding depreciation,
amortization, extraordinary items, restructuring charges or other expenses); revenues; operating margins; return on assets; return
on equity; debt; debt plus equity; market or economic value added; share price appreciation; total stockholder return; cost control;
strategic initiatives; market share; net income; return on invested capital; improvements in capital structure; or customer satisfaction,
employee satisfaction, services performance, subscriber, cash management or asset management metrics (together, the "Performance
Criteria").

 

(b)          Such
performance goals also may be based on the achievement of specified levels of Company performance (or performance of an applicable
affiliate or business unit of the Company) under one or more of the Performance Criteria described above relative to the performance
of other companies. Such performance goals shall be set by the Committee within the time period prescribed by, and shall otherwise
comply with the requirements of, Section 162(m) of the Code, or any successor provision thereto, and the regulations thereunder.

 

    	 	-12-	 

     

    

 

(c)          The
Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that
occurs during a performance period: (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the
effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (iv) any reorganization
and restructuring programs, (v) any unusual, infrequently occurring and/or nonrecurring items of gain or loss, that in all
of the foregoing, 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 periodic reports; (vi) acquisitions or divestitures, (vii) foreign
exchange gains and losses, (viii) gains and losses on asset sales, and (ix) impairments. To the extent such inclusions
or exclusions affect Awards to Covered Employees, they shall be prescribed in a form that satisfies the requirements for “performance-based
compensation” within the meaning of Section 162(m)(4)(C) of the Code, or any successor provision thereto.

 

		16.2	Adjustment of Awards

 

Notwithstanding
any provision of the Plan other than Section 15, with respect to any Award that is subject to this Section 16, the Committee
may adjust downwards, but not upwards, the amount payable pursuant to such Award, and the Committee may not waive the achievement
of the applicable performance goals except in the case of the death or disability of the Covered Employee.

 

		16.3	Limitations

 

Subject to adjustment from time to time
as provided in Section 15.1, no Covered Employee may be granted Awards other than Performance Units subject to this Section 16
in any calendar year period with respect to more than 1,000,000 shares of Common Stock for such Awards, except that the Company
may make additional onetime grants of such Awards for up to 1,000,000 shares to newly hired or newly promoted individuals.
The maximum dollar value payable with respect to any one calendar year to any Covered Employee with respect to Performance Units
or other Awards payable in cash subject to this Section 16 is $1,000,000.

 

The Committee shall have the power to impose
such other restrictions on Awards subject to this Section 16 as it may deem necessary or appropriate to ensure that such Awards
satisfy all requirements for "performance-based compensation" within the meaning of Section 162(m)(4)(C) of the
Code, or any successor provision thereto.

 

SECTION 17. AMENDMENT AND TERMINATION

 

		17.1	Amendment, Suspension or Termination

 

The Board or the Compensation Committee
may amend, suspend or terminate the Plan or any portion of the Plan at any time and in such respects as it shall deem advisable;
provided, however, that, to the extent required by applicable law, regulation or stock exchange rule, stockholder approval shall
be required for any amendment to the Plan; and provided, further, that any amendment that requires stockholder approval may be
made only by the Board. Subject to Section 17.3, the Committee may amend the terms of any outstanding Award, prospectively
or retroactively.

 

    	 	-13-	 

     

    

 

		17.2	Term of the Plan

 

Unless sooner
terminated as provided herein, the Plan shall automatically terminate on the tenth (10th) anniversary of the earlier
of (a) the date the Board adopted the Plan and (b) the date the stockholders approved the Plan. After the Plan is terminated, no
future Awards may be granted, but Awards previously granted shall remain outstanding in accordance with their terms and conditions
and the Plan's terms and conditions.

 

		17.3	Consent of Participant

 

The amendment, suspension or termination
of the Plan or a portion thereof or the amendment of an outstanding Award shall not, without the Participant's consent, materially
adversely affect any rights under any Award theretofore granted to the Participant under the Plan. Any change or adjustment to
an outstanding Incentive Stock Option shall not, without the consent of the Participant, be made in a manner so as to constitute
a "modification" that would cause such Incentive Stock Option to fail to continue to qualify as an Incentive Stock Option.
Notwithstanding the foregoing, any adjustments made pursuant to Section 15 shall not be subject to these restrictions.

 

SECTION 18. GENERAL

 

		18.1	No Individual Rights

 

No individual or Participant shall have
any claim to be granted any Award under the Plan, and the Company has no obligation for uniformity of treatment of Participants
under the Plan.

 

Furthermore, nothing in the Plan or any
Award granted under the Plan shall be deemed to constitute an employment contract or confer or be deemed to confer on any Participant
any right to continue in the employ of, or to continue any other relationship with, the Company or any Related Company or limit
in any way the right of the Company or any Related Company to terminate a Participant's employment or other relationship at any
time, with or without cause.

 

		18.2	Issuance of Shares

 

(a)          Notwithstanding
any other provision of the Plan, the Company shall have no obligation to issue or deliver any shares of Common Stock under the
Plan or make any other distribution of benefits under the Plan unless, in the opinion of the Company's counsel, such issuance,
delivery or distribution would comply with all applicable laws (including, without limitation, the requirements of the Securities
Act or the laws of any state or foreign jurisdiction) and the applicable requirements of any securities exchange or similar entity.

 

(b)         The
Company shall be under no obligation to any Participant to register for offering or resale or to qualify for exemption under the
Securities Act, or to register or qualify under the laws of any state or foreign jurisdiction, any shares of Common Stock, security
or interest in a security paid or issued under, or created by, the Plan, or to continue in effect any such registrations or qualifications
if made.

 

    	 	-14-	 

     

    

 

(c)          As
a condition to the exercise of an Option or any other receipt of Common Stock pursuant to an Award under the Plan, the Company
may require (i) the Participant to represent and warrant at the time of any such exercise or receipt that such shares are
being purchased or received only for the Participant's own account and without any present intention to sell or distribute such
shares and (ii) such other action or agreement by the Participant as may from time to time be necessary to comply with federal,
state and foreign securities laws. At the option of the Company, a stop-transfer order against any such shares may be placed on
the official stock books and records of the Company, and a legend indicating that such shares may not be pledged, sold or otherwise
transferred, unless an opinion of counsel is provided (concurred in by counsel for the Company) stating that such transfer is not
in violation of any applicable law or regulation, may be stamped on stock certificates to ensure exemption from registration. The
Committee may also require the Participant to execute and deliver to the Company a purchase agreement or such other agreement as
may be in use by the Company at such time that describes certain terms and conditions applicable to the shares.

 

(d)         To
the extent the Plan or any instrument evidencing an Award provides for issuance of stock certificates to reflect the issuance of
shares of Common Stock, the issuance may be effected on a noncertificated basis, to the extent not prohibited by applicable law
or the applicable rules of any stock exchange.

 

		18.3	Indemnification

 

(a)          Each
person who is or shall have been a member of the Board, the Compensation Committee, or a committee of the Board or an officer of
the Company to whom authority to administer the Plan has been delegated in accordance with Section 3.1, shall be indemnified and
held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred
by such person in connection with or resulting from any claim, action, suit or proceeding to which such person may be a party or
in which such person may be involved by reason of any action taken or failure to act under the Plan and against and from any and
all amounts paid by such person in settlement thereof, with the Company's approval, or paid by such person in satisfaction of any
judgment in any such claim, action, suit or proceeding against such person, unless such loss, cost, liability or expense is a result
of such person's own willful misconduct or except as expressly provided by statute; provided, however, that such person shall give
the Company an opportunity, at its own expense, to handle and defend the same before such person undertakes to handle and defend
it on such person's own behalf.

 

(b)         The
foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such person may be entitled
under the Company's articles of incorporation or bylaws, as a matter of law, or otherwise, or of any power that the Company may
have to indemnify or hold harmless.

 

		18.4	No Rights as a Stockholder

 

Unless otherwise provided by the Committee
or in the instrument evidencing the Award or in a written employment, services or other agreement, no Award, other than a Stock
Award, shall entitle the Participant to any cash dividend, voting or other right of a stockholder unless and until the date of
issuance under the Plan of the shares that are the subject of such Award.

 

		18.5	Compliance with Laws and Regulations

 

(a)          In
interpreting and applying the provisions of the Plan, any Option granted as an Incentive Stock Option pursuant to the Plan shall,
to the extent permitted by law, be construed as an "incentive stock option" within the meaning of Section 422 of
the Code.

 

    	 	-15-	 

     

    

 

(b)         The
Plan and Awards granted under the Plan are intended to be exempt from the requirements of Section 409A to the maximum extent
possible, whether pursuant to the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4), the exclusion
applicable to stock options, stock appreciation rights and certain other equity-based compensation under Treasury Regulation Section
1.409A-1(b)(5), or otherwise. To the extent Section 409A is applicable to the Plan or any Award granted under the Plan, it
is intended that the Plan and any Awards granted under the Plan shall comply with the deferral, payout and other limitations and
restrictions imposed under Section 409A. Notwithstanding any other provision of the Plan or any Award granted under the Plan to
the contrary, the Plan and any Award granted under the Plan shall be interpreted, operated and administered in a manner consistent
with such intentions. Without limiting the generality of the foregoing, and notwithstanding any other provision of the Plan or
any Award granted under the Plan to the contrary, with respect to any payments and benefits under the Plan or any Award granted
under the Plan to which Section 409A applies, all references in the Plan or any Award granted under the Plan to the termination
of the Participant's employment or service are intended to mean the Participant's "separation from service," within the
meaning of Section 409A(a)(2)(A)(i). In addition, if the Participant is a "specified employee," within the meaning
of Section 409A, then to the extent necessary to avoid subjecting the Participant to the imposition of any additional tax
under Section 409A, amounts that would otherwise be payable under the Plan or any Award granted under the Plan during the
six-month period immediately following the Participant's "separation from service," within the meaning of Section 409A(a)(2)(A)(i),
shall not be paid to the Participant during such period, but shall instead be accumulated and paid to the Participant (or, in the
event of the Participant's death, the Participant's estate) in a lump sum on the first business day after the earlier of the date
that is six months following the Participant's separation from service or the Participant's death. Notwithstanding any other provision
of the Plan to the contrary, the Committee, to the extent it deems necessary or advisable in its sole discretion, reserves the
right, but shall not be required, to unilaterally amend or modify the Plan and any Award granted under the Plan so that the Award
qualifies for exemption from or complies with Section 409A; provided, however, that the Committee makes no representations that
Awards granted under the Plan shall be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A
from applying to Awards granted under the Plan.

 

(c)          Also
notwithstanding any other provision of the Plan to the contrary, the Board or the Compensation Committee shall have broad authority
to amend the Plan or any outstanding Award without the consent of the Participant to the extent the Board or the Compensation Committee
deems necessary or advisable to comply with, or take into account, changes in applicable tax laws, securities laws, accounting
rules or other applicable laws, rules or regulations.

 

		18.6	Participants in Other Countries or Jurisdictions

 

Without amending the Plan, the Committee
may grant Awards to Eligible Persons who are foreign nationals on such terms and conditions different from those specified in the
Plan as may, in the judgment of the Committee, be necessary or desirable to foster and promote achievement of the purposes of the
Plan and shall have the authority to adopt such modifications, procedures, subplans and the like as may be necessary or desirable
to comply with provisions of the laws or regulations of other countries or jurisdictions in which the Company or any Related Company
may operate or have employees to ensure the viability of the benefits from Awards granted to Participants employed in such countries
or jurisdictions, meet the requirements that permit the Plan to operate in a qualified or tax-efficient manner, comply with applicable
foreign laws or regulations and meet the objectives of the Plan.

 

		18.7	No Trust or Fund

 

The Plan is intended to constitute an "unfunded"
plan. Nothing contained herein shall require the Company to segregate any monies or other property, or shares of Common Stock,
or to create any trusts, or to make any special deposits for any immediate or deferred amounts payable to any Participant, and
no Participant shall have any rights that are greater than those of a general unsecured creditor of the Company.

 

    	 	-16-	 

     

    

 

		18.8	Successors

 

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

 

		18.9	Severability

 

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

 

		18.10	Choice of Law and Venue

 

The Plan,
all Awards granted thereunder and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed
by the laws of the United States, shall be governed by the laws of the State of Oregon without giving effect to principles of conflicts
of law. Participants irrevocably consent to the nonexclusive jurisdiction and venue of the state and federal courts located in
the State of Oregon.

 

		18.11	Legal Requirements

 

The granting of Awards and the issuance
of shares of Common Stock under the Plan 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.

 

		18.12	Electronic Communication

 

Any documents delivered under the Plan,
including pursuant to applicable laws, may be delivered electronically. Signatures on any documents delivered pursuant to the Plan
also may be electronic if permitted by the Company and applicable law.

 

		18.13	Recoupment

 

Awards shall be subject to the requirements
of (a) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded
compensation) and any implementing rules and regulations thereunder, (b) similar rules under the laws of any other applicable jurisdiction,
(c) any compensation recovery or clawback policies adopted by the Company to implement any such requirements or (d) any other compensation
recovery or clawback policies as may be adopted from time to time by the Company, all to the extent determined by the Board or
the Committee in its discretion to be applicable to a Participant.

 

SECTION 19. EFFECTIVE DATE

 

The Plan shall become effective on the date the Board adopts
the Plan (the "Effective Date"). If the stockholders of the Company do not approve the Plan within 12 months
after the Board’s adoption of the Plan, any Incentive Stock Options granted under the Plan will be treated as Nonqualified
Stock Options.

 

    	 	-17-	 

     

    

 

APPENDIX A

 

DEFINITIONS

 

As used in the Plan,

 

"Acquired Entity" means any entity acquired
by the Company or a Related Company or with which the Company or a Related Company merges or combines.

 

"Award" means any Option, Stock Appreciation
Right, Stock Award, Restricted Stock, Stock Unit, Performance Share, Performance Unit, cash-based award or other incentive payable
in cash or in shares of Common Stock as may be designated by the Committee from time to time.

 

"Board" means the Board of Directors
of the Company.

 

"Cause," unless otherwise defined in
the instrument evidencing an Award or in a written employment, services or other agreement between the Participant and the Company
or a Related Company, means dishonesty, fraud, serious or willful misconduct, unauthorized use or disclosure of confidential information
or trade secrets, or conduct prohibited by law (except minor violations), in each case as determined by the Company's chief human
resources officer or other person performing that function or, in the case of directors and executive officers, the Compensation
Committee, whose determination shall be conclusive and binding.

 

"Change in Control," unless the Committee
determines otherwise with respect to an Award at the time the Award is granted or unless otherwise defined for purposes of an Award
in a written employment, services or other agreement between the Participant and the Company or a Related Company, means the occurrence
of any of the following events:

 

(a)       an acquisition
by any Entity of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either
(i) the number of then outstanding shares of Common Stock (the "Outstanding Company Common Stock") or (ii)
the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of
directors (the "Outstanding Company Voting Securities"); provided, however, that the following acquisitions
shall not constitute a Change in Control: (i) any acquisition directly from the Company, other than an acquisition by virtue of
the exercise of a conversion privilege where the security being so converted was not acquired directly from the Company by the
party exercising the conversion privilege, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any Related Company, (iv) any additional acquisition by an Entity
who, as of the Effective Date, beneficially owns at least 50% of the Outstanding Company Common Stock or the Outstanding Company
Voting Securities, provided that this clause (iv) shall be of no effect if such shareholder's beneficial ownership of the Outstanding
Company Common Stock or the Outstanding Company Voting Securities is less than 25% immediately prior to any such additional acquisition,
or (v) any acquisition by any Entity pursuant to a transaction that meets the conditions of clauses (i), (ii) and (iii) set forth
in the definition of Company Transaction;

 

(b)       a change in the
composition of the Board during any two-year period such that the individuals who, as of the beginning of such two-year period,
constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of
the Board; provided, however, that for purposes of this definition, any individual who becomes a member of the Board subsequent
to the beginning of the two-year period, whose election, or nomination for election by the Company's stockholders, was approved
by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board
(or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board;
and provided further, however, that any such individual whose initial assumption of office occurs as a result of or in connection
with an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of an Entity other than the Board shall not be considered a member of the Incumbent
Board; or

 

    	 	A-1	 

     

    

 

(c)           the consummation
of a Company Transaction.

 

"Code" means the Internal Revenue Code
of 1986, as amended from time to time.

 

"Committee" has the meaning set forth
in Section 3.1.

 

"Common Stock" means the common stock,
par value $0.001, of the Company.

 

"Company" means Target Group Inc., a
Delaware corporation.

 

"Company Transaction," unless the Committee
determines otherwise with respect to an Award at the time the Award is granted or unless otherwise defined for purposes of an Award
in a written employment, services or other agreement between the Participant and the Company or a Related Company, means consummation
of:

 

(a)           a merger or consolidation
of the Company with or into any other company;

 

(b)           a sale in one transaction
or a series of transactions undertaken with a common purpose of at least 50% of the Company's outstanding voting securities; or

 

(c)           a sale, lease,
exchange or other transfer in one transaction or a series of related transactions undertaken with a common purpose of all or substantially
all of the Company's assets,

 

excluding, however, in each case, any such transaction pursuant
to which

 

(i)       the
Entities who are the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately
prior to such transaction will beneficially own, directly or indirectly, at least 50% of the outstanding shares of common stock,
and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors,
of the Successor Company in substantially the same proportions as their ownership, immediately prior to such transaction, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities;

 

(ii)       no
Entity (other than the Company or any employee benefit plan (or related trust) of the Company, a Related Company or a Successor
Company) will beneficially own, directly or indirectly, more than 50% of the outstanding shares of common stock of the Successor
Company or the combined voting power of the outstanding voting securities of the Successor Company entitled to vote generally in
the election of directors, unless such ownership resulted solely from ownership of securities of the Company prior to such transaction;
and

 

(iii)       individuals
who were members of the Incumbent Board will immediately after the consummation of such transaction constitute at least a majority
of the members of the board of directors of the Successor Company.

 

    	 	A-2	 

     

    

 

Where a series of transactions undertaken with a common purpose
is deemed to be a Company Transaction, the date of such Company Transaction shall be the date on which the last of such transactions
is consummated.

 

"Compensation Committee" means the Compensation
Committee of the Board.

 

"Covered Employee" means a "covered
employee" as that term is defined for purposes of Section 162(m)(3) of the Code or any successor provision and to whom the
deduction limits under Section 162(m) apply.

 

"Disability," unless otherwise defined
by the Committee for purposes of the Plan in the instrument evidencing an Award or in a written employment, services or other agreement
between the Participant and the Company or a Related Company, means a mental or physical impairment of the Participant that is
expected to result in death or that has lasted or is expected to last for a continuous period of 12 months or more and that
causes the Participant to be unable to perform his or her material duties for the Company or a Related Company and to be engaged
in any substantial gainful activity, in each case as determined by the Company's chief human resources officer or other person
performing that function or, in the case of directors and executive officers, the Compensation Committee, whose determination shall
be conclusive and binding.

 

"Effective Date" has the meaning set
forth in Section 19.

 

"Eligible Person" means any person eligible
to receive an Award as set forth in Section 5.

 

"Entity" means any individual, entity
or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act).

 

"Exchange Act" means the Securities
Exchange Act of 1934, as amended from time to time.

 

"Fair Market Value" means, as of any
given date, (a) if the principal market for the Common Stock is a national securities exchange or an established securities market,
the closing price for the Common Stock during regular session trading, or if not trading on that date, such price on the last preceding
date on which the Common Stock was traded; (b) if the principal market for the Common Stock is not a national securities exchange
or an established securities market, the average of the highest bid and lowest asked prices for the Common Stock as reported on
a national quotation system, or if not quoted on that date, such price on the last preceding date on which the prices were quoted;
or (c) the per share value otherwise determined by the Committee using such reasonable methods or procedures as it may establish.

 

"Grant Date" means the later of (a) the
date on which the Committee completes the corporate action authorizing the grant of an Award or such later date specified by the
Committee and (b) the date on which all conditions precedent to an Award have been satisfied, provided that conditions to
the exercisability or vesting of Awards shall not defer the Grant Date.

 

"Incentive Stock Option" means an Option
granted with the intention that it qualify as an "incentive stock option" as that term is defined for purposes of Section
422 of the Code or any successor provision.

 

"Incumbent Board" has the meaning set
forth in the definition of "Change in Control."

 

"Nonqualified Stock Option" means an
Option other than an Incentive Stock Option.

 

"Option" means a right to purchase Common
Stock granted under Section 7.

 

    	 	A-3	 

     

    

 

"Option Expiration Date" means the last
day of the maximum term of an Option.

 

"Outstanding Company Common Stock" has
the meaning set forth in the definition of "Change in Control."

 

"Outstanding Company Voting Securities"
has the meaning set forth in the definition of "Change in Control."

 

"Parent Company" means a company or
other entity which, as a result of a Change in Control, owns the Company or all or substantially all of the Company's assets either
directly or through one or more subsidiaries.

 

"Participant" means any Eligible Person
to whom an Award is granted.

 

"Performance Award" means an Award of
Performance Shares or Performance Units granted under Section 11.

 

"Performance Criteria" has the meaning
set forth in Section 16.1.

 

"Performance Share" means an Award of
units denominated in shares of Common Stock granted under Section 11.1.

 

"Performance Unit" means an Award of
units denominated in cash or property other than shares of Common Stock granted under Section 11.2.

 

"Plan" means the Target Group Inc. 2019
Equity Incentive Plan, as amended from time to time.

 

"Related Company" means any entity that
is directly or indirectly controlled by, in control of or under common control with the Company.

 

"Restricted Stock" means an Award of
shares of Common Stock granted under Section 10, the rights of ownership of which are subject to restrictions prescribed by
the Committee.

 

"Restricted Stock Unit" means a Stock
Unit subject to restrictions prescribed by the Committee.

 

"Section 409A" means Section 409A of
the Code, including any regulations and other guidance issued thereunder by the Department of the Treasury and/or the Internal
Revenue Service.

 

"Securities Act" means the Securities
Act of 1933, as amended from time to time.

 

"Stock Appreciation Right" or "SAR"
means a right granted under Section 9.1 to receive the excess of the Fair Market Value of a specified number of shares of
Common Stock over the grant price.

 

"Stock Award" means an Award of shares
of Common Stock granted under Section 10, the rights of ownership of which are not subject to restrictions prescribed by the
Committee.

 

"Stock Unit," including a Restricted
Stock Unit, means an Award denominated in units of Common Stock granted under Section 10.

 

"Substitute Awards" means Awards granted
or shares of Common Stock issued by the Company in substitution or exchange for awards previously granted by an Acquired Entity.

 

    	 	A-4	 

     

    

 

"Successor Company" means the surviving
company, the successor company or Parent Company, as applicable, in connection with a Company Transaction.

 

"Termination of Service" means a termination
of employment or service relationship with the Company or a Related Company for any reason, whether voluntary or involuntary, including
by reason of death or Disability. Any question as to whether and when there has been a Termination of Service for the purposes
of an Award and the cause of such Termination of Service shall be determined by the Company's chief human resources officer or
other person performing that function or, with respect to directors and executive officers, by the Compensation Committee, whose
determination shall be conclusive and binding. Transfer of a Participant's employment or service relationship between the Company
and any Related Company shall not be considered a Termination of Service for purposes of an Award. Unless the Compensation Committee
determines otherwise, a Termination of Service shall be deemed to occur if the Participant's employment or service relationship
is with an entity that has ceased to be a Related Company. Unless the Committee determines otherwise, a change in the capacity
in which the Participant renders service to the Company or a Related Company shall not be considered a Termination of Service,
such as a change in status from an employee of the Company or a Related Company to a nonemployee director, consultant, advisor,
or independent contractor of the Company or a Related Company, or a change in status from a nonemployee director, consultant, advisor
or independent contractor of the Company or a Related Company to an employee of the Company or a Related Company.

 

"Vesting Commencement Date" means the
Grant Date or such other date selected by the Committee as the date from which an Award begins to vest.

 

The foregoing Target Group Inc. 2019 Equity Incentive Plan was
adopted and approved by the Board of Directors on June 10, 2019

 

    	 	A-5

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