Document:

Exhibit 10.4

 

 

 

 

 

 

 

 

 

American
Virtual Cloud Technologies, Inc.

2020
EQUITY INCENTIVE PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

American
Virtual Cloud Technologies, INC.

2020
EQUITY INCENTIVE PLAN

 

	1.	Purpose	1
	 	 	 
	2.	Definitions	1
	 	 	 
	3.	Administration	7
	 	 	 
	4.	Shares Subject to Plan	8
	 	 	 
	5.	Eligibility	9
	 	 	 
	6.	Specific Terms of Awards	9
	 	 	 
	7.	Certain Provisions Applicable to Awards	15
	 	 	 
	8.	Reserved	18
	 	 	 
	9.	Change in Control	18
	 	 	 
	10.	General Provisions	20

 

     

     

    

 

American
Virtual Cloud Technologies, INC.

2020
EQUITY INCENTIVE PLAN

 

1. Purpose.
The purpose of this AMERICAN VIRTUAL CLOUD TECHNOLOGIES, INC. 2020 EQUITY INCENTIVE PLAN (the “Plan”)
is to assist AMERICAN VIRTUAL CLOUD TECHNOLOGIES, INC. (the “Company”),
and its Related Entities (as hereinafter defined) in attracting, motivating, retaining and rewarding high-quality executives and
other employees, officers, directors, consultants and other persons who provide services to the Company or its Related Entities
by enabling such persons to acquire or increase a proprietary interest in the Company in order to strengthen the mutuality of
interests between such persons and the Company’s shareholders, and providing such persons with performance incentives to
expend their maximum efforts in the creation of shareholder value. 

 

2. Definitions.
For purposes of the Plan, the following terms shall be defined as set forth below, in addition to such terms defined in Section
1 hereof and elsewhere herein.

 

(a) “Award”
means any Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Share granted as a bonus or in
lieu of another Award, Dividend Equivalent, Other Stock-Based Award or Performance Award, together with any other right or interest
relating to Shares or other property (including cash), granted to a Participant under the Plan.

 

(b) “Award
Agreement” shall mean any written agreement, contract or other instrument or document evidencing any Award granted
by the Committee hereunder.

 

(c) “Beneficiary”
shall mean the person, persons, trust or trusts that have been designated by a Participant in his or her most recent written beneficiary
designation filed with the Committee to receive the benefits specified under the Plan upon such Participant’s death or to
which Awards or other rights are transferred if and to the extent permitted under Section 10(b) hereof. If, upon a Participant’s
death, there is no designated Beneficiary or surviving designated Beneficiary, then the term Beneficiary means the Participant’s
estate.

 

(d) “Beneficial
Owner” and “Beneficial Ownership” shall have the meaning ascribed to such term in Rule
13d-3 under the Exchange Act and any successor to such Rule.

 

(e) “Board”
shall mean the Board of Directors of the Company.

 

(f) “Cause”
shall have the equivalent meaning or the same meaning as “cause” or “for cause” set forth in any employment,
consulting, or other agreement for the performance of services between the Participant and the Company or a Related Entity or,
in the absence of any such agreement or any such definition in such agreement, such term shall mean (i) the failure by the Participant
to perform, in a reasonable manner, his or her duties as assigned by the Company or a Related Entity, (ii) any violation or breach
by the Participant of his or her employment, consulting or other similar agreement with the Company or a Related Entity, if any,
(iii) any violation or breach by the Participant of any non-competition, non-solicitation, non-disclosure and/or other similar
agreement with the Company or a Related Entity, (iv) any act by the Participant of dishonesty or bad faith with respect to the
Company or a Related Entity, (v) use of alcohol, drugs or other similar substances in a manner that adversely affects the Participant’s
work performance, or (vi) the commission by the Participant of any act, misdemeanor, or crime reflecting unfavorably upon the Participant
or the Company or any Related Entity. The good faith determination by the Committee of whether the Participant’s Continuous
Service was terminated by the Company for “Cause” shall be final and binding for all purposes hereunder.

 

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(g) “Change
in Control” shall mean a Change in Control as defined in Section 9(b) of the Plan.

 

(h) “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder and successor provisions
and regulations thereto.

 

(i) “Committee”
shall mean a committee designated by the Board to administer the Plan; provided, however, that if the Board fails to designate
a committee or if there are no longer any members on the committee so designated by the Board, or for any other reason determined
by the Board, then the Board shall serve as the Committee. While it is intended that the Committee shall consist of at least two
directors, each of whom shall be (i) a “non-employee director” within the meaning of Rule 16b-3 (or any successor
rule) under the Exchange Act, unless administration of the Plan by “non-employee directors” is not then required in
order for exemptions under Rule 16b-3 to apply to transactions under the Plan and (ii) “Independent”, the failure of
the Committee to be so comprised shall not invalidate any Award that otherwise satisfies the terms of the Plan.

 

(j) “Consultant”
shall mean any consultant or advisor who provides services to the Company or any Related Entity, so long as (i) such person renders
bona fide services that are not in connection with the offer and sale of the Company’s securities in a capital-raising transaction,
(ii) such person does not directly or indirectly promote or maintain a market for the Company’s securities, and (iii) the
identity of such person would not preclude the Company from offering or selling securities to such person pursuant to the Plan
in reliance on either the exemption from registration provided by Rule 701 under the Securities Act of 1933 or, if the Company
is required to file reports pursuant to Section 13 or 15(d) of the Exchange Act, registration on a Form S-8 Registration Statement
under the Securities Act of 1933.

 

(k) “Continuous
Service” shall “mean the uninterrupted provision of services to the Company or any Related Entity in any capacity
of Employee, Director, Consultant or other service provider. Continuous Service shall not be considered to be interrupted in the
case of (i) any approved leave of absence (including, without limitation, sick leave, military leave, or any other authorized personal
leave), (ii) transfers among the Company, any Related Entities, or any successor entities, in any capacity of Employee, Director,
Consultant or other service provider, or (iii) any change in status as long as the individual remains in the service of the Company
or a Related Entity in any capacity of Employee, Director, Consultant or other service provider (except as otherwise provided in
the Award Agreement).

 

(l) “Director”
shall mean a member of the Board or the board of directors of any Related Entity.

 

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(m) “Disability”
shall mean, unless otherwise defined in an Award Agreement, for purposes of the exercise of an Incentive Stock Option, a permanent
and total disability, within the meaning of Code Section 22(e)(3), and for all other purposes, the Participant's inability to perform
the duties of his or her position with the Company or any Related Entity by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12)
months.

 

(n) “Dividend
Equivalent” shall mean a right, granted to a Participant under Section 6(g) hereof, to receive cash, Shares, other
Awards or other property equal in value to dividends paid with respect to a specified number of Shares, or other periodic payments.

 

(o) “Effective
Date” shall mean the effective date of the Plan, which shall be February 27, 2020.

 

(p) “Eligible
Person” shall mean each Director, Employee, Consultant and other person who provides services to the Company or any
Related Entity. The foregoing notwithstanding, only Employees of the Company, or any parent corporation or subsidiary corporation
of the Company (as those terms are defined in Sections 424(e) and (f) of the Code, respectively), shall be Eligible Persons for
purposes of receiving any Incentive Stock Options. An Employee on leave of absence may, in the discretion of the Committee, be
considered as still in the employ of the Company or a Related Entity for purposes of eligibility for participation in the Plan.

 

(q) “Employee”
shall mean any person, including an officer or Director, who is an employee of the Company or any Related Entity, or is a prospective
employee of the Company or any Related Entity (conditioned upon and effective not earlier than, such person becoming an employee
of the Company or any Related Entity). The payment of a director’s fee by the Company or a Related Entity shall not be sufficient
to constitute “employment” by the Company.

 

(r) “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to time, including rules thereunder and
successor provisions and rules thereto.

 

(s) “Fair
Market Value” shall mean the fair market value of Shares, Awards or other property on the date as of which the value
is being determined, as determined by the Committee, or under procedures established by the Committee, subject to the following:

 

(i) If, on such
date, the Shares are listed on an international, national or regional securities exchange or market system, the Fair Market Value
of a Share shall be the closing price of a Share (or the mean of the closing bid and asked prices of a Share if the Share is so
quoted instead) as quoted on the applicable Listing Market (as defined below), as reported in The Wall Street Journal or such other
source as the Company deems reliable. If the relevant date does not fall on a day on which the Share has traded on such Listing
Market, the date on which the Fair Market Value shall be established shall be the last day on which the Share was so traded prior
to the relevant date, or such other appropriate day as shall be determined by the Board, in its discretion.

 

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(ii) If, on such
date, the Share are not listed on an international, national or regional securities exchange or market system, the Fair Market
Value of a Share shall be as determined by the Board in good faith without regard to any restriction other than a restriction which,
by its terms, will never lapse.

 

(t) “Good
Reason” shall, with respect to any Participant, have the equivalent meaning or the same meaning as “good reason”
or “for good reason” set forth in any employment, consulting or other agreement for the performance of services between
the Participant and the Company or a Related Entity or, in the absence of any such agreement or any such definition in such agreement,
such term shall mean (i) the assignment to the Participant of any duties inconsistent in any material respect with the Participant’s
duties or responsibilities as assigned by the Company or a Related Entity, or any other action by the Company or a Related Entity
which results in a material diminution in such duties or responsibilities, excluding for this purpose an action which is remedied
by the Company or a Related Entity promptly after receipt of notice thereof given by the Participant; (ii) any material failure
by the Company or a Related Entity to comply with its obligations to the Participant as agreed upon, other than a failure which
is remedied by the Company or a Related Entity promptly after receipt of notice thereof given by the Participant; (iii) the Company’s
or Related Entity’s requiring the Participant to be based at any office or location outside of fifty (50) miles from the
location of employment or service as of the date of Award, except for travel reasonably required in the performance of the Participant’s
responsibilities; or (iv) a material breach by the Company or any Related Entity of any employment, consulting or other agreement
under which the Participant provides services to the Company or any Related Entity. For purposes of this Plan, upon termination
of a Participant’s Continuous Service, Good Reason shall not be deemed to exist unless the Participant’s termination
of Continuous Service for Good Reason occurs within sixty (60) days following the initial existence of one of the conditions specified
in clauses (i) through (iv) above, the Participant provides the Company or the Related Entity for which the Participant provides
services with written notice of the existence of such condition with thirty (30) days after the initial existence of the condition,
and the Company fails to remedy the condition within thirty (30) days after its receipt of notice.

 

(u) “Incentive
Stock Option” shall mean any Option intended to be designated as an incentive stock option within the meaning of
Section 422 of the Code or any successor provision thereto.

 

(v) “Independent”,
when referring to either the Board or members of the Committee, shall have the same meaning as used in the rules of the Listing
Market.

 

(w) “Incumbent
Board” shall mean the Incumbent Board as defined in Section 9(b)(ii) hereof.

 

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(x) “Listing
Market” shall mean the international or national securities exchange on which any securities of the Company are listed
for trading, and if not listed for trading, by the rules of the Nasdaq Stock Market.

 

(y) “Option”
shall mean a right granted to a Participant under Section 6(b) hereof, to purchase Shares or other Awards at a specified price
during specified time periods.

 

(z) “Optionee”
shall mean a person to whom an Option is granted under this Plan or any person who succeeds to the rights of such person under
this Plan.

 

(aa) “Other
Stock-Based Awards” shall mean Awards granted to a Participant under Section 6(i) hereof.

 

(bb) “Parent”
shall mean any corporation (other than the Company), whether now or hereafter existing, in an unbroken chain of corporations ending
with the Company, if each of the corporations in the chain (other than the Company) owns stock possessing 50% or more of the combined
voting power of all classes of stock in one of the other corporations in the chain.

 

(cc) “Participant”
shall mean a person who has been granted an Award under the Plan which remains outstanding, including a person who is no longer
an Eligible Person.

 

(dd) “Performance
Award” shall mean any Award granted pursuant to Section 6(h) hereof.

 

(ee) “Performance
Period” shall mean that period established by the Committee at the time any Performance Award is granted or at any
time thereafter during which any performance goals specified by the Committee with respect to such Award are to be measured.

 

(ff) “Person”
shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
and shall include a “group” as defined in Section 13(d) thereof.

 

(gg) “Related
Entity” shall mean any Parent or Subsidiary, and any business, corporation, partnership, limited liability company
or other entity designated by the Committee in which the Company, a Parent or a Subsidiary holds a substantial ownership interest,
directly or indirectly and with respect to which the Company may offer or sell securities pursuant to the Plan in reliance upon
either Rule 701 under the Securities Act of 1933 or, if the Company is required to file reports pursuant to Section 13 or 15(d)
of the Exchange Act, registration on a Form S-8 Registration Statement under the Securities Act of 1933.

 

(hh) “Restricted
Stock” shall mean any Share issued with such risks of forfeiture and other restrictions as the Committee, in its
sole discretion, may impose (including any restriction on the right to vote such Share and the right to receive any dividends),
which restrictions may lapse separately or in combination at such time or times, in installments or otherwise, as the Committee
may deem appropriate.

 

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(ii) “Restricted
Stock Award” shall mean an Award granted to a Participant under Section 6(d) hereof.

 

(jj) “Restricted
Stock Unit” shall mean a right to receive Shares, including Restricted Stock, cash measured based upon the value
of Shares, or a combination thereof, at the end of a specified deferral period.

 

(kk) “Restricted
Stock Unit Award” shall mean an Award of Restricted Stock Units granted to a Participant under Section 6(e) hereof.

 

(ll) “Restriction
Period” shall mean the period of time specified by the Committee that Restricted Stock Awards shall be subject to
such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose.

 

(mm) “Rule
16b-3” shall mean Rule 16b-3, as from time to time in effect and applicable to the Plan and Participants, promulgated
by the Securities and Exchange Commission under Section 16 of the Exchange Act.

 

(nn) “Shares”
shall mean the shares of common stock of the Company, in each case, and such other securities as may be substituted (or resubstituted)
for Shares pursuant to Section 10(c) hereof.

 

(oo) “Stock
Appreciation Right” shall mean a right granted to a Participant under Section 6(c) hereof.

 

(pp) “Subsidiary”
shall mean any corporation or other entity in which the Company has a direct or indirect ownership interest of 50% or more of the
total combined voting power of the then outstanding securities or interests of such corporation or other entity entitled to vote
generally in the election of directors or in which the Company has the right to receive 50% or more of the distribution of profits
or 50% or more of the assets on liquidation or dissolution.

 

(qq) “Substitute
Awards” shall mean Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange
for, Awards previously granted, or the right or obligation to make future Awards, by a company (i) acquired by the Company or any
Related Entity, (ii) which becomes a Related Entity after the date hereof, or (iii) with which the Company or any Related Entity
combines.

 

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3. Administration.

 

(a) Authority
of the Committee. The Plan shall be administered by the Committee except
to the extent (and subject to the limitations imposed by Section 3(b) hereof) the Board elects to administer the Plan, in which
case the Plan shall be administered by only those members of the Board who are Independent members of the Board, in which case
references herein to the “Committee” shall be deemed to include references to the Independent members of the Board.
The Committee shall have full and final authority, subject to and consistent with the provisions of the Plan, to select Eligible
Persons to become Participants, grant Awards, determine the type, number and other terms and conditions of, and all other matters
relating to, Awards, prescribe Award Agreements (which need not be identical for each Participant) and rules and regulations for
the administration of the Plan, construe and interpret the Plan and Award Agreements and correct defects, supply omissions or
reconcile inconsistencies therein, and to make all other decisions and determinations as the Committee may deem necessary or advisable
for the administration of the Plan. In exercising any discretion granted to the Committee under the Plan or pursuant to any Award,
the Committee shall not be required to follow past practices, act in a manner consistent with past practices, or treat any Eligible
Person or Participant in a manner consistent with the treatment of any other Eligible Persons or Participants. Decisions of the
Committee shall be final, conclusive and binding on all persons or entities, including the Company, any Related Entity or any
Participant or Beneficiary, or any transferee under Section 10(b) hereof or any other person claiming rights from or through any
of the foregoing persons or entities.

 

(b) Manner
of Exercise of Committee Authority. The Committee, and not the Board, shall
exercise sole and exclusive discretion (i) on any matter relating to a Participant then subject to Section 16 of the Exchange
Act with respect to the Company to the extent necessary in order that transactions by such Participant shall be exempt under Rule
16b-3 under the Exchange Act, and (ii) with respect to any Award to an Independent Director. The express grant of any specific
power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority
of the Committee. The Committee may delegate to members of the Board, or officers or managers of the Company or any Related Entity,
or committees thereof, the authority, subject to such terms and limitations as the Committee shall determine, to perform such
functions, including administrative functions as the Committee may determine to the extent that such delegation will not result
in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject to Section 16 of the Exchange Act
in respect of the Company. The Committee may appoint agents to assist it in administering the Plan, including, without limitation,
appointing one or more members of the Company’s management, with the power or authority otherwise granted to the Committee
under this Plan with respect to a number of Shares reserved and available for delivery under the Plan, subject to the terms and
limitations of such power or authority as determined by the Committee in its sole and absolute discretion. In no event, however,
may an agent appointed by the Committee to assist it in administering the Plan be permitted to grant Awards to, or exercise any
discretion with respect to any and all other matters relating to Awards previously granted to, such agent appointed by the Committee
to assist it in administering the Plan.

 

(c) Limitation
of Liability. The Committee and the Board, and each member thereof, shall
be entitled to, in good faith, rely or act upon any report or other information furnished to him or her by any officer or Employee,
the Company’s independent auditors, Consultants or any other agents assisting in the administration of the Plan. Members
of the Committee and the Board, and any officer or Employee acting at the direction or on behalf of the Committee or the Board,
shall not be personally liable for any action or determination taken or made in good faith with respect to the Plan, and shall,
to the extent permitted by law, be fully indemnified and protected by the Company with respect to any such action or determination.

 

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4. Shares
Subject to Plan.

 

(a) Limitation
on Overall Number of Shares Available for Delivery Under Plan. Subject to
adjustment as provided in Section 10(c) hereof, the total number of Shares reserved and available for delivery under the Plan
shall be equal to 5,794,500. Any Shares delivered under the Plan may consist, in whole or in part, of authorized and unissued
shares or treasury shares.

 

(b) Application
of Limitation to Grants of Awards. No Award may be granted if the number
of Shares to be delivered in connection with such an Award exceeds the number of Shares remaining available for delivery under
the Plan, minus the number of Shares that would be counted against the limit upon settlement of then outstanding Awards. The Committee
may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of
tandem or substitute awards) and make adjustments if the number of Shares actually delivered differs from the number of Shares
previously counted in connection with an Award.

 

(c) Availability
of Shares Not Delivered under Awards and Adjustments to Limits.

 

(i) If any Shares
subject to an Award are forfeited, expire or otherwise terminate without issuance of such Shares, or any Award is settled for cash
or otherwise does not result in the issuance of all or a portion of the Shares subject to such Award, the Shares to which those
Awards were subject, shall, to the extent of such forfeiture, expiration, termination, non-issuance or cash settlement, again be
available for delivery with respect to Awards under the Plan.

 

(ii) The full
number of Shares subject to an Option granted under this Plan shall count against the number of Shares remaining available for
issuance pursuant to Awards granted under the Plan, even if the exercise price of the Option is satisfied through net-settlement
or by delivering Shares to the Company (by either actual delivery or attestation). Upon exercise of Stock Appreciation Rights granted
under the Plan that are settled in Shares, the full number of Stock Appreciation Rights (rather than the net number of Shares actually
delivered upon exercise) shall count against the maximum number of Shares remaining available for issuance pursuant to Awards granted
under the Plan.

 

(iii) Shares withheld
from an Award granted under this Plan to satisfy tax withholding requirements shall count against the maximum number of Shares
remaining available for issuance pursuant to Awards granted under the Plan, and Shares delivered by a participant to satisfy tax
withholding requirements shall not be added back to the Plan Share pool.

 

(iv) Substitute
Awards shall not reduce the Shares authorized for delivery under the Plan or authorized for delivery to a Participant in any period.
Additionally, in the event that an entity acquired by the Company or any Related Entity or with which the Company or any Related
Entity combines has shares available under a pre-existing plan approved by its shareholders and not adopted in contemplation of
such acquisition or combination, the shares available for delivery pursuant to the terms of such pre-existing plan (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 the holders of common stock of the entities party to such acquisition
or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for delivery under the Plan if
and to the extent that the use of such Shares would not require approval of the Company’s shareholders under the rules of
the Listing Market. Awards using such available shares shall not be made after the date awards or grants could have been made under
the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not Employees
or Directors prior to such acquisition or combination.

 

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(v) Any Share
that again becomes available for delivery pursuant to this Section 4(c) shall be added back as one (1) Share.

 

(vi) Notwithstanding
anything in this Section 4(c) to the contrary but subject to adjustment as provided in Section 10(c) hereof, the maximum aggregate
number of Shares that may be delivered under the Plan as a result of the exercise of the Incentive Stock Options shall be 5,794,500
Shares. In no event shall any Incentive Stock Options be granted under the Plan after the tenth anniversary of the date on which
the Board adopts the Plan.

 

(vii) Notwithstanding
anything in this Section 4 to the contrary, but subject to adjustment as provided in Section 10(c) hereof, in any fiscal year of
the Company during any part of which the Plan is in effect, no Participant who is a Director but is not also an Employee or Consultant
may be granted any Awards that have a “fair value” as of the date of grant, as determined in accordance with FASB ASC
Topic 718 (or any other applicable accounting guidance), that exceeds $1,000,000 in the aggregate.

 

5. Eligibility.
Awards may be granted under the Plan only to Eligible Persons.

 

6. Specific
Terms of Awards.

 

(a) General.
Awards may be granted on the terms and conditions set forth in this Section 6. In addition, the Committee may impose on any Award
or the exercise thereof, at the date of grant or thereafter (subject to Section 10(e) hereof), such additional terms and conditions,
not inconsistent with the provisions of the Plan, as the Committee shall determine, including terms requiring forfeiture of Awards
in the event of termination of the Participant’s Continuous Service and terms permitting a Participant to make elections
relating to his or her Award. Except as otherwise expressly provided herein, the Committee shall retain full power and discretion
to accelerate, waive or modify, at any time, any term or condition of an Award that is not mandatory under the Plan. Except in
cases in which the Committee is authorized to require other forms of consideration under the Plan, or to the extent other forms
of consideration must be paid to satisfy the requirements of the laws of the State of Delaware, no consideration other than services
may be required for the grant (as opposed to the exercise) of any Award.

 

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(b) Options.
The Committee is authorized to grant Options to any Eligible Person on the following terms and conditions:

 

(i) Exercise
Price. Other than in connection with Substitute Awards, the exercise price per Share purchasable under an Option shall
be determined by the Committee, provided that such exercise price shall not be less than 100% of the Fair Market Value of a Share
on the date of grant of the Option and shall not, in any event, be less than the par value of a Share on the date of grant of the
Option. If an Employee owns or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code)
more than 10% of the combined voting power of all classes of stock of the Company (or any parent corporation or subsidiary corporation
of the Company, as those terms are defined in Sections 424(e) and (f) of the Code, respectively) and an Incentive Stock Option
is granted to such Employee, the exercise price of such Incentive Stock Option (to the extent required by the Code at the time
of grant) shall be no less than 110% of the Fair Market Value of a Share on the date such Incentive Stock Option is granted. Other
than pursuant to Section 10(c)(i) and (ii) of this Plan, the Committee shall not be permitted to (A) lower the exercise price per
Share of an Option after it is granted, (B) cancel an Option when the exercise price per Share exceeds the Fair Market Value of
the underlying Shares in exchange for cash or another Award (other than in connection with Substitute Awards), (C) cancel an outstanding
Option in exchange for an Option with an exercise price that is less than the exercise price of the original Options or (D) take
any other action with respect to an Option that may be treated as a repricing pursuant to the applicable rules of the Listing Market,
without approval of the Company’s shareholders.

 

(ii) Time
and Method of Exercise. The Committee shall determine the time or times at which or the circumstances under which an Option
may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements),
the method by which notice of exercise is to be given and the form of exercise notice to be used, the time or times at which Options
shall cease to be or become exercisable following termination of Continuous Service or upon other conditions, the methods by which
the exercise price may be paid or deemed to be paid (including in the discretion of the Committee a cashless exercise procedure),
the form of such payment, including, without limitation, cash, Shares (including without limitation the withholding of Shares otherwise
deliverable pursuant to the Award), other Awards or awards granted under other plans of the Company or a Related Entity, or other
property (including notes or other contractual obligations of Participants to make payment on a deferred basis provided that such
deferred payments are not in violation of Section 13(k) of the Exchange Act, or any rule or regulation adopted thereunder or any
other applicable law), and the methods by or forms in which Shares will be delivered or deemed to be delivered to Participants.

 

(iii) Form
of Settlement. The Committee may, in its sole discretion, provide that the Shares to be issued upon exercise of an
Option shall be in the form of Restricted Stock or other similar securities.

 

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(iv) Incentive
Stock Options. The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions
of Section 422 of the Code. Anything in the Plan to the contrary notwithstanding, no term of the Plan relating to Incentive Stock
Options (including any Stock Appreciation Right issued in tandem therewith) shall be interpreted, amended or altered, nor shall
any discretion or authority granted under the Plan be exercised, so as to disqualify either the Plan or any Incentive Stock Option
under Section 422 of the Code, unless the Participant has first requested, or consents to, the change that will result in such
disqualification. Thus, if and to the extent required to comply with Section 422 of the Code, Options granted as Incentive Stock
Options shall be subject to the following special terms and conditions:

 

(A) the Option shall
not be exercisable for more than ten years after the date such Incentive Stock Option is granted; provided, however, that if a
Participant owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10% of the combined
voting power of all classes of stock of the Company (or any parent corporation or subsidiary corporation of the Company, as those
terms are defined in Sections 424(e) and (f) of the Code, respectively) and the Incentive Stock Option is granted to such Participant,
the term of the Incentive Stock Option shall be (to the extent required by the Code at the time of the grant) for no more than
five years from the date of grant;

 

(B) the aggregate
Fair Market Value (determined as of the date the Incentive Stock Option is granted) of the Shares with respect to which Incentive
Stock Options granted under the Plan and all other option plans of the Company (and any parent corporation or subsidiary corporation
of the Company, as those terms are defined in Sections 424(e) and (f) of the Code, respectively) that become exercisable for the
first time by the Participant during any calendar year shall not (to the extent required by the Code at the time of the grant)
exceed $100,000; and

 

(C) if Shares acquired
by exercise of an Incentive Stock Option are disposed of within two years following the date the Incentive Stock Option is granted
or one year following the transfer of such Shares to the Participant upon exercise, the Participant shall, promptly following such
disposition, notify the Company in writing of the date and terms of such disposition and provide such other information regarding
the disposition as the Committee may reasonably require.

 

(c) Stock
Appreciation Rights. The Committee may grant Stock Appreciation Rights to
any Eligible Person in conjunction with all or part of any Option granted under the Plan or at any subsequent time during the
term of such Option (a “Tandem Stock Appreciation Right”), or without regard to any Option (a “Freestanding
Stock Appreciation Right”), in each case upon such terms and conditions as the Committee may establish in its sole discretion,
not inconsistent with the provisions of the Plan, including the following:

 

(i) Right
to Payment. A Stock Appreciation Right shall confer on the Participant to whom it is granted a right to receive, upon exercise
thereof, the excess of (A) the Fair Market Value of one Share on the date of exercise over (B) the grant price of the Stock Appreciation
Right as determined by the Committee. The grant price of a Stock Appreciation Right shall not be less than 100% of the Fair Market
Value of a Share on the date of grant, in the case of a Freestanding Stock Appreciation Right, or less than the associated Option
exercise price, in the case of a Tandem Stock Appreciation Right. Other than pursuant to Section 10(c)(i) and (ii) of the Plan,
the Committee shall not be permitted to (A) lower the grant price per Share of a Stock Appreciation Right after it is granted,
(B) cancel a Stock Appreciation Right when the grant price per Share exceeds the Fair Market Value of the underlying Shares in
exchange for another Award (other than in connection with Substitute Awards), (C) cancel an outstanding Stock Appreciation Right
in exchange for a Stock Appreciation Right with a grant price that is less than the grant price of the original Stock Appreciation
Right, or (D) take any other action with respect to a Stock Appreciation Right that may be treated as a repricing pursuant to the
applicable rules of the Listing Market, without shareholder approval.

 

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(ii) Other
Terms. The Committee shall determine at the date of grant or thereafter, the time or times at which and the circumstances
under which a Stock Appreciation Right may be exercised in whole or in part (including based on achievement of performance goals
and/or future service requirements), the time or times at which Stock Appreciation Rights shall cease to be or become exercisable
following termination of Continuous Service or upon other conditions, the method of exercise, method of settlement, form of consideration
payable in settlement, method by or forms in which Shares will be delivered or deemed to be delivered to Participants, whether
or not a Stock Appreciation Right shall be in tandem or in combination with any other Award, and any other terms and conditions
of any Stock Appreciation Right.

 

(iii) Tandem
Stock Appreciation Rights. Any Tandem Stock Appreciation Right may be granted at the same time as the related Option is
granted or, for Options that are not Incentive Stock Options, at any time thereafter before exercise or expiration of such Option.
Any Tandem Stock Appreciation Right related to an Option may be exercised only when the related Option would be exercisable and
the Fair Market Value of the Shares subject to the related Option exceeds the exercise price at which Shares can be acquired pursuant
to the Option. In addition, if a Tandem Stock Appreciation Right exists with respect to less than the full number of Shares covered
by a related Option, then an exercise or termination of such Option shall not reduce the number of Shares to which the Tandem Stock
Appreciation Right applies until the number of Shares then exercisable under such Option equals the number of Shares to which the
Tandem Stock Appreciation Right applies. Any Option related to a Tandem Stock Appreciation Right shall no longer be exercisable
to the extent the Tandem Stock Appreciation Right has been exercised, and any Tandem Stock Appreciation Right shall no longer be
exercisable to the extent the related Option has been exercised.

 

(d) Restricted
Stock Awards. The Committee is authorized to grant Restricted Stock Awards
to any Eligible Person on the following terms and conditions:

 

(i) Grant
and Restrictions. Restricted Stock Awards shall be subject to such restrictions on transferability, risk of forfeiture
and other restrictions, if any, as the Committee may impose, or as otherwise provided in this Plan during the Restriction Period.
The terms of any Restricted Stock Award granted under the Plan shall be set forth in a written Award Agreement which shall contain
provisions determined by the Committee and not inconsistent with the Plan. The restrictions may lapse separately or in combination
at such times, under such circumstances (including based on achievement of performance goals and/or future service requirements),
in such installments or otherwise, as the Committee may determine at the date of grant or thereafter. Except to the extent restricted
under the terms of the Plan and any Award Agreement relating to a Restricted Stock Award, a Participant granted Restricted Stock
shall have all of the rights of a shareholder, including the right to vote the Restricted Stock and the right to receive dividends
thereon (subject to any mandatory reinvestment or other requirement imposed by the Committee). During the period that the Restricted
Stock Award is subject to a risk of forfeiture, subject to Section 10(b) below and except as otherwise provided in the Award Agreement,
the Restricted Stock may not be sold, transferred, pledged, hypothecated, margined or otherwise encumbered by the Participant or
Beneficiary.

 

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(ii) Forfeiture.
Except as otherwise determined by the Committee, upon termination of a Participant’s Continuous Service during the applicable
Restriction Period, the Participant’s Restricted Stock that is at that time subject to a risk of forfeiture that has not
lapsed or otherwise been satisfied shall be forfeited and reacquired by the Company; provided that, subject to the limitations
set forth in Section 6(j) hereof, the Committee may provide, by resolution or other action or in any Award Agreement, or may determine
in any individual case, that forfeiture conditions relating to Restricted Stock Awards shall be waived in whole or in part in the
event of terminations resulting from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture
of Restricted Stock.

 

(iii) Certificates
for Stock. Restricted Stock granted under the Plan may be evidenced in such manner as the Committee shall determine. If
certificates representing Restricted Stock are registered in the name of the Participant, the Committee may require that such certificates
bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock, that the Company
retain physical possession of the certificates, and that the Participant deliver a stock power to the Company, endorsed in blank,
relating to the Restricted Stock.

 

(iv) Dividends
and Splits. As a condition to the grant of a Restricted Stock Award, the Committee shall either (A) require that any cash
dividends paid on a Share of Restricted Stock be automatically reinvested in additional Shares of Restricted, or (B) require that
payment be delayed (with or without interest at such rate, if any, as the Committee shall determine) and remain subject to restrictions
and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such cash dividend is payable, in each
case in a manner that does not violate the requirements of Section 409A of the Code. Unless otherwise determined by the Committee,
Shares distributed in connection with a stock split or stock dividend, and other property distributed as a dividend, shall be subject
to restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such Shares or other
property have been distributed.

 

(e) Restricted
Stock Unit Award. The Committee is authorized to grant Restricted Stock
Unit Awards to any Eligible Person on the following terms and conditions:

 

(i) Award
and Restrictions. Satisfaction of a Restricted Stock Unit Award shall occur upon expiration of the deferral period specified
for such Restricted Stock Unit Award by the Committee (or, if permitted by the Committee, as elected by the Participant in a manner
that does not violate the requirements of Section 409A of the Code). In addition, a Restricted Stock Unit Award shall be subject
to such restrictions (which may include a risk of forfeiture) as the Committee may impose, if any, which restrictions may lapse
at the expiration of the deferral period or at earlier specified times (including based on achievement of performance goals and/or
future service requirements), separately or in combination, in installments or otherwise, as the Committee may determine. A Restricted
Stock Unit Award may be satisfied by delivery of Shares, cash equal to the Fair Market Value of the specified number of Shares
covered by the Restricted Stock Units, or a combination thereof, as determined by the Committee at the date of grant or thereafter.
Prior to satisfaction of a Restricted Stock Unit Award, a Restricted Stock Unit Award carries no voting or dividend or other rights
associated with Share ownership. Prior to satisfaction of a Restricted Stock Unit Award, except as otherwise provided in an Award
Agreement and as permitted under Section 409A of the Code, a Restricted Stock Unit Award may not be sold, transferred, pledged,
hypothecated, margined or otherwise encumbered by the Participant or any Beneficiary.

 

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(ii) Forfeiture.
Except as otherwise determined by the Committee, upon termination of a Participant’s Continuous Service during the applicable
deferral period or portion thereof to which forfeiture conditions apply (as provided in the Award Agreement evidencing the Restricted
Stock Unit Award), the Participant’s Restricted Stock Unit Award that is at that time subject to a risk of forfeiture that
has not lapsed or otherwise been satisfied shall be forfeited; provided that, subject to the limitations set forth in Section 6(j)(ii)
hereof, the Committee may provide, by resolution or other action or in any Award Agreement, or may determine in any individual
case, that forfeiture conditions relating to a Restricted Stock Unit Award shall be waived in whole or in part in the event of
terminations resulting from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture of
any Restricted Stock Unit Award.

 

(iii) Dividend
Equivalents. As a condition to the grant of a Restricted Stock Unit, the Committee shall require that any cash dividends
paid on a Share attributable to such Restricted Stock Unit be delayed (with or without interest at such rate, if any, as the Committee
shall determine) and remain subject to restrictions and a risk of forfeiture to the same extent as the Restricted Stock Unit with
respect to which such cash dividend is payable, in a manner that does not violate the requirements of Section 409A of the Code.
Unless otherwise determined by the Committee, Shares distributed in connection with a stock split or stock dividend, and other
property distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted
Stock Unit with respect to which such Shares or other property have been distributed.

 

(f) Bonus
Stock and Awards in Lieu of Obligations. The Committee is authorized to
grant Shares to any Eligible Persons as a bonus, or to grant Shares or other Awards in lieu of obligations to pay cash or deliver
other property under the Plan or under other plans or compensatory arrangements, provided that, in the case of Eligible Persons
subject to Section 16 of the Exchange Act, the amount of such grants remains within the discretion of the Committee to the extent
necessary to ensure that acquisitions of Shares or other Awards are exempt from liability under Section 16(b) of the Exchange
Act. Shares or Awards granted hereunder shall be subject to such other terms as shall be determined by the Committee.

 

(g) Dividend
Equivalents. The Committee is authorized to grant Dividend Equivalents to
any Eligible Person entitling the Eligible Person to receive cash, Shares, other Awards, or other property equal in value to the
dividends paid with respect to a specified number of Shares, or other periodic payments. Dividend Equivalents may be awarded on
a free-standing basis or in connection with another Award. The Committee may provide that Dividend Equivalents shall be paid or
distributed when accrued, or whether such Dividend Equivalents shall be deemed to have been reinvested in additional Shares, Awards,
or other investment vehicles, and subject to such restrictions on transferability and risks of forfeiture, as the Committee may
specify; provided, that in no event shall such Dividend
Equivalents be paid out to Participants prior to vesting of the corresponding Shares underlying the Award. Any such determination
by the Committee shall be made at the grant date of the applicable Award. Notwithstanding the foregoing, Dividend Equivalents
credited in connection with an Award that vests based on the achievement of performance goals shall be subject to restrictions
and risk of forfeiture to the same extent as the Award with respect to which such Dividend Equivalents have been credited.

 

(h) Performance
Awards. The Committee is authorized to grant Performance Awards to any Eligible
Person payable in cash, Shares, or other Awards, on terms and conditions established by the Committee, subject to the provisions
of Section 8 if and to the extent that the Committee shall, in its sole discretion, determine that an Award shall be subject to
those provisions. The performance criteria to be achieved during any Performance Period and the length of the Performance Period
shall be determined by the Committee upon the grant of each Performance Award. Except as provided in Section 9 or as may be provided
in an Award Agreement, Performance Awards will be distributed only after the end of the relevant Performance Period. The performance
goals to be achieved for each Performance Period shall be conclusively determined by the Committee and may be based upon the criteria
set forth in Section 8(b), or in the case of an Award that the Committee determines shall not be subject to Section 8 hereof,
any other criteria that the Committee, in its sole discretion, shall determine should be used for that purpose. The amount of
the Award to be distributed shall be conclusively determined by the Committee. Performance Awards may be paid in a lump sum or
in installments following the close of the Performance Period or, in accordance with procedures established by the Committee,
on a deferred basis in a manner that does not violate the requirements of Section 409A of the Code.

 

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(i) Other
Stock-Based Awards. The Committee is authorized, subject to limitations
under applicable law, to grant to any Eligible Person such other Awards that may be denominated or payable in, valued in whole
or in part by reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the
purposes of the Plan. Other Stock-Based Awards may be granted to Participants either alone or in addition to other Awards granted
under the Plan, and such Other Stock-Based Awards shall also be available as a form of payment in the settlement of other Awards
granted under the Plan. Except as otherwise provided in the last sentence of Section 6(h) hereof, the Committee shall determine
the terms and conditions of such Awards. Shares delivered pursuant to an Award in the nature of a purchase right granted under
this Section 6(i) shall be purchased for such consideration, (including without limitation loans from the Company or a Related
Entity provided that such loans are not in violation of Section 13(k) of the Exchange Act or any rule or regulation adopted thereunder
or any other applicable law) paid for at such times, by such methods, and in such forms, including, without limitation, cash,
Shares, other Awards or other property, as the Committee shall determine.

  

(j) Minimum
Vesting Conditions. Except for certain limited situations (including death, disability, retirement, a Change in Control
referred to in Section 9, grants to new hires to replace forfeited compensation, grants representing payment of earned Performance
Awards or other incentive compensation, Substitute Awards or grants to Directors), all Awards granted under this Plan shall be
subject to a minimum vesting period of one (1) year (the “Minimum Vesting Condition”); provided,
that such Minimum Vesting Condition will not be required on Awards covering, in the aggregate, a number of Shares not to exceed
5% of the maximum Share pool limit set forth in Section 4(a) hereof (subject to adjustment as provided in Section 10(c) hereof).

 

7. Certain
Provisions Applicable to Awards.

 

(a) Stand-Alone,
Additional, Tandem, and Substitute Awards. Awards granted under the Plan
may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution or exchange
for, any other Award or any award granted under another plan of the Company, any Related Entity, or any business entity to be
acquired by the Company or a Related Entity, or any other right of a Participant to receive payment from the Company or any Related
Entity. Such additional, tandem, and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution
or exchange for another Award or award, the Committee shall require the surrender of such other Award or award in consideration
for the grant of the new Award. In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash amounts
payable under other plans of the Company or any Related Entity, in which the value of Shares subject to the Award is equivalent
in value to the cash compensation (for example, Restricted Stock or Restricted Stock Units), or in which the exercise price, grant
price or purchase price of the Award in the nature of a right that may be exercised is equal to the Fair Market Value of the underlying
Shares minus the value of the cash compensation surrendered (for example, Options or Stock Appreciation Right granted with an
exercise price or grant price “discounted” by the amount of the cash compensation surrendered), provided that any
such determination to grant an Award in lieu of cash compensation must be made in a manner intended to be exempt from or comply
with Section 409A of the Code.

 

(b) Term
of Awards. The term of each Award shall be for such period as may be determined
by the Committee; provided that in no event shall the term of any Option or Stock Appreciation Right exceed a period of ten years
(or in the case of an Incentive Stock Option such shorter term as may be required under Section 422 of the Code); provided, however,
that in the event that on the last day of the term of an Option or a Stock Appreciation Right, other than an Incentive Stock Option,
(i) the exercise of the Option or Stock Appreciation Right is prohibited by applicable law, or (ii) Shares may not be purchased,
or sold by certain employees or directors of the Company due to the “black-out period” of a Company policy or a “lock-up”
agreement undertaken in connection with an issuance of securities by the Company, the term of the Option or Stock Appreciation
Right may be extended by the Committee for a period of up to thirty (30) days following the end of the legal prohibition, black-out
period or lock-up agreement, provided that such extension of the term of the Option or Stock Appreciation Right would not cause
the Option or Stock Appreciation Right to violate the requirements of Section 409A of the Code.

 

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(c) Form
and Timing of Payment Under Awards; Deferrals. Subject to the terms of the
Plan and any applicable Award Agreement, payments to be made by the Company or a Related Entity upon the exercise of an Option
or other Award or settlement of an Award may be made in such forms as the Committee shall determine, including, without limitation,
cash, Shares, other Awards or other property, and may be made in a single payment or transfer, in installments, or on a deferred
basis, provided that any determination to pay in installments or on a deferred basis shall be made by the Committee at the date
of grant. Any installment or deferral provided for in the preceding sentence shall, however, subject to the terms of the Plan,
be subject to the Company’s compliance with the provisions of the Sarbanes-Oxley Act of 2002, as amended, the rules and
regulations adopted by the Securities and Exchange Commission thereunder, all applicable rules of the Listing Market and any other
applicable law, and in a manner intended to be exempt from or otherwise satisfy the requirements of Section 409A of the Code.
Subject to Section 7(e) of this Plan, the settlement of any Award may be accelerated, and cash paid in lieu of Shares in connection
with such settlement, in the sole discretion of the Committee or upon occurrence of one or more specified events (in addition
to a Change in Control). Any such settlement shall be at a value determined by the Committee in its sole discretion, which, without
limitation, may in the case of an Option or Stock Appreciation Right be limited to the amount if any by which the Fair Market
Value of a Share on the settlement date exceeds the exercise or grant price. Installment or deferred payments may be required
by the Committee (subject to Section 7(e) of this Plan, including the consent provisions thereof in the case of any deferral of
an outstanding Award not provided for in the original Award Agreement) or permitted at the election of the Participant on terms
and conditions established by the Committee. The acceleration of the settlement of any Award, and the payment of any Award in
installments or on an deferred basis, all shall be done in a manner that is intended to be exempt from or otherwise satisfy the
requirements of Section 409A of the Code. The Committee may, without limitation, make provision for the payment or crediting of
a reasonable interest rate on installment or deferred payments or the grant or crediting of Dividend Equivalents or other amounts
in respect of installment or deferred payments denominated in Shares.

 

(d) Exemptions
from Section 16(b) Liability. It is the intent of the Company that the grant
of any Awards to or other transaction by a Participant who is subject to Section 16 of the Exchange Act shall be exempt from Section
16 pursuant to an applicable exemption (except for transactions acknowledged in writing to be non-exempt by such Participant).
Accordingly, if any provision of this Plan or any Award Agreement does not comply with the requirements of Rule 16b-3 then applicable
to any such transaction, such provision shall be construed or deemed amended to the extent necessary to conform to the applicable
requirements of Rule 16b-3 so that such Participant shall avoid liability under Section 16(b).

 

(e) Code
Section 409A.

 

(i) The Award
Agreement for any Award that the Committee reasonably determines to constitute a “nonqualified deferred compensation plan”
under Section 409A of the Code (a “Section 409A Plan”), and the provisions of the Section 409A Plan applicable
to that Award, shall be construed in a manner consistent with the applicable requirements of Section 409A of the Code, and the
Committee, in its sole discretion and without the consent of any Participant, may amend any Award Agreement (and the provisions
of the Plan applicable thereto) if and to the extent that the Committee determines that such amendment is necessary or appropriate
to comply with the requirements of Section 409A of the Code.

 

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(ii) If any Award
constitutes a Section 409A Plan, then the Award shall be subject to the following additional requirements, if and to the extent
required to comply with Section 409A of the Code:

 

(A) Payments
under the Section 409A Plan may be made only upon (u) the Participant’s “separation from service”, (v) the date
the Participant becomes “disabled”, (w) the Participant’s death, (x) a “specified time (or pursuant to
a fixed schedule)” specified in the Award Agreement at the date of the deferral of such compensation, (y) a “change
in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets” of
the Company, or (z) the occurrence of an “unforeseeble emergency”;

 

(B) The time
or schedule for any payment of the deferred compensation may not be accelerated, except to the extent provided in applicable Treasury
Regulations or other applicable guidance issued by the Internal Revenue Service;

 

(C) Any elections
with respect to the deferral of such compensation or the time and form of distribution of such deferred compensation shall comply
with the requirements of Section 409A(a)(4) of the Code; and

 

(D)  In the
case of any Participant who is “specified employee”, a distribution on account of a “separation from service”
may not be made before the date which is six months after the date of the Participant’s “separation from service”
(or, if earlier, the date of the Participant’s death).

 

For purposes of the foregoing, the terms
in quotations shall have the same meanings as those terms have for purposes of Section 409A of the Code, and the limitations set
forth herein shall be applied in such manner (and only to the extent) as shall be necessary to comply with any requirements of
Section 409A of the Code that are applicable to the Award.

 

(iii) Notwithstanding
the foregoing, or any provision of this Plan or any Award Agreement, the Company does not make any representation to any Participant
or Beneficiary that any Awards made pursuant to this Plan are exempt from, or satisfy, the requirements of, Section 409A of the
Code, and the Company shall have no liability or other obligation to indemnify or hold harmless the Participant or any Beneficiary
for any tax, additional tax, interest or penalties that the Participant or any Beneficiary may incur in the event that any provision
of this Plan, or any Award Agreement, or any amendment or modification thereof, or any other action taken with respect thereto,
is deemed to violate any of the requirements of Section 409A of the Code.

 

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8. Reserved.

 

9. Change
in Control.

 

(a) Effect
of “Change in Control.” If and only to the extent provided
in any employment or other agreement between the Participant and the Company or any Related Entity, or in any Award Agreement,
or to the extent otherwise determined by the Committee in its sole discretion and without any requirement that each Participant
be treated consistently, and except as otherwise provided in Section 9(a)(iv) hereof, upon the occurrence of a “Change in
Control,” as defined in Section 9(b):

 

(i) Any Option
or Stock Appreciation Right that was not previously vested and exercisable as of the time of the Change in Control, shall become
immediately vested and exercisable, subject to applicable restrictions set forth in Section 10(a) hereof.

 

(ii) Any restrictions,
deferral of settlement, and forfeiture conditions applicable to a Restricted Stock Award, Restricted Stock Unit Award or an Other
Stock-Based Award subject only to future service requirements granted under the Plan shall lapse and such Awards shall be deemed
fully vested as of the time of the Change in Control, except to the extent of any waiver by the Participant and subject to applicable
restrictions set forth in Section 10(a) hereof.

 

(iii) With respect
to any outstanding Award subject to achievement of performance goals and conditions under the Plan, the Committee may, in its discretion,
consider such Awards to have been earned and payable based on achievement of performance goals or based upon target performance
(either in full or pro-rata based on the portion of the Performance Period completed as of the Change in Control), except to the
extent of any waiver by the Participant and subject to applicable restrictions set forth in Section 10(a).

 

(iv) Except as
otherwise provided in any employment or other agreement for services between the Participant and the Company or any Subsidiary,
and unless the Committee otherwise determines in a specific instance, each outstanding Option, Stock Appreciation Right, Restricted
Stock Award, Restricted Stock Unit Award or Other Stock-Based Award shall not be accelerated as described in Sections 9(a)(i),
(ii) and (iii), if either (A) the Company is the surviving entity in the Change in Control and the Option, Stock Appreciation Right,
Restricted Stock Award, Restricted Stock Unit Award or Other Stock-Based Award continues to be outstanding after the Change in
Control on substantially the same terms and conditions as were applicable immediately prior to the Change in Control or (B) the
successor company or its parent company assumes or substitutes for the applicable Award, as determined in accordance with Section
10(c)(ii) of this Plan.

 

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(b) Definition
of “Change in Control”. Unless otherwise specified in any employment
or other agreement for services between the Participant and the Company or any Related Entity, or in an Award Agreement, a “Change
in Control” shall mean the occurrence of any of the following:

 

(i) The acquisition
by any Person of Beneficial Ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty
percent (50%) of 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”) (the foregoing Beneficial
Ownership hereinafter being referred to as a “Controlling Interest”); provided, however, that for purposes
of this Section 9(b), the following acquisitions shall not constitute or result in a Change in Control: (v) any acquisition directly
from the Company; (w) any acquisition by the Company; (x) any acquisition by any Person that as of the Effective Date owns Beneficial
Ownership of a Controlling Interest; (y) any acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Company or any Related Entity; or (z) any acquisition by any entity pursuant to a transaction which complies with clauses
(1), (2) and (3) of subsection (iii) below; or

 

(ii) During any
period of two (2) consecutive years (not including any period prior to the Effective Date) individuals who constitute the Board
on the Effective Date (the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination
for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a result of 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 a Person other than the Board; or

 

(iii) Consummation
of (A) a reorganization, merger, statutory share exchange or consolidation or similar transaction involving (x) the Company or
(y) any one or more Subsidiaries whose combined revenues for the prior fiscal year represented more than 50% of the consolidated
revenues of the Company and its Subsidiaries for the prior fiscal year (the “Major Subsidiaries”), or
(B) a sale or other disposition of all or substantially all of the assets of the Company or the Major Subsidiaries, or the acquisition
of assets or equity of another entity by the Company or any of its Subsidiaries (each of the events referred to in clauses (A)
and (B) sometimes hereinafter being referred to a “Business Combination”), unless, following such
Business Combination, (1) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively,
of the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly,
more than fifty percent (50%) of the combined voting power of the then outstanding voting securities entitled to vote generally
in the election of members of the board of directors (or comparable governing body of an entity that does not have such a board),
as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a
result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through
one or more subsidiaries) (the “Continuing Entity”) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Company Voting Securities, (excluding any outstanding voting
securities of the Continuing Entity that such Beneficial Owners hold immediately following the consummation of the Business Combination
as a result of their ownership, prior to such consummation, of voting securities of any company or other entity involved in or
forming part of such Business Combination other than the Company), (2) no Person (excluding any employee benefit plan (or related
trust) of the Company or any Continuing Entity or any entity controlled by the Continuing Entity or any Person that as of the Effective
Date owns Beneficial Ownership of a Controlling Interest) beneficially owns, directly or indirectly, fifty percent (50%) or more
of the combined voting power of the then outstanding voting securities of the Continuing Entity except to the extent that such
ownership existed prior to the Business Combination, and (3) at least a majority of the members of the Board of Directors or other
governing body of the Continuing Entity were members of the Incumbent Board at the time of the execution of the initial agreement,
or of the action of the Board, providing for such Business Combination; or

 

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(iv) Approval
by the shareholders of the Company of a complete liquidation or dissolution of the Company.

 

Notwithstanding anything to the contrary
herein, the term “Change in Control” shall not include any sale of assets, a merger or other transaction effected
exclusively for the purpose of changing the domicile of the Company, or an initial public offering underwritten on a firm commitment
basis pursuant to a registration statement filed with the Securities Exchange Commission.

 

10. General
Provisions.

 

(a) Compliance
With Legal and Other Requirements. The Company may, to the extent deemed
necessary or advisable by the Committee, postpone the issuance or delivery of Shares or payment of other benefits under any Award
until completion of such registration or qualification of such Shares or other required action under any federal or state law,
rule or regulation, listing or other required action with respect to the Listing Market, or compliance with any other obligation
of the Company, as the Committee, may consider appropriate, and may require any Participant to make such representations, furnish
such information and comply with or be subject to such other conditions as it may consider appropriate in connection with the
issuance or delivery of Shares or payment of other benefits in compliance with applicable laws, rules, and regulations, listing
requirements, or other obligations.

 

(b) Limits
on Transferability; Beneficiaries. No Award or other right or interest granted
under the Plan shall be pledged, hypothecated or otherwise encumbered or subject to any lien, obligation or liability of such
Participant to any party, or assigned or transferred by such Participant otherwise than by will or the laws of descent and distribution
or to a Beneficiary upon the death of a Participant, and such Awards or rights that may be exercisable shall be exercised during
the lifetime of the Participant only by the Participant or his or her guardian or legal representative, except that Awards and
other rights (other than Incentive Stock Options and Stock Appreciation Rights in tandem therewith) may be transferred to one
or more Beneficiaries or other transferees during the lifetime of the Participant, and may be exercised by such transferees in
accordance with the terms of such Award, but only if and to the extent such transfers are permitted by the Committee pursuant
to the express terms of an Award Agreement (subject to any terms and conditions which the Committee may impose thereon), are by
gift or pursuant to a domestic relations order, and are to a “Permitted Assignee” that is a permissible transferee
under the applicable rules of the Securities and Exchange Commission for registration of securities on a Form S-8 registration
statement. For this purpose, a Permitted Assignee shall mean (i) the Participant’s spouse, children or grandchildren (including
any adopted and step children or grandchildren), parents, grandparents or siblings, (ii) a trust for the benefit of one or more
of the Participant or the persons referred to in clause (i), (iii) a partnership, limited liability company or corporation in
which the Participant or the persons referred to in clauses (i) and (ii) are the only partners, members or shareholders, or (iv)
a foundation in which any person or entity designated in clauses (i), (ii) or (iii) above control the management of assets. A
Beneficiary, transferee, or other person claiming any rights under the Plan from or through any Participant shall be subject to
all terms and conditions of the Plan and any Award Agreement applicable to such Participant, except as otherwise determined by
the Committee, and to any additional terms and conditions deemed necessary or appropriate by the Committee.

 

    20

     

    

 

(c) Adjustments.

 

(i) Adjustments
to Awards. In the event that any extraordinary dividend or other distribution (whether in the form of cash, Shares, or
other property), recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase,
share exchange, liquidation, dissolution or other similar corporate transaction or event affects the Shares and/or such other securities
of the Company or any other issuer, then the Committee shall, in such manner as it may deem appropriate and equitable, substitute,
exchange or adjust any or all of (A) the number and kind of Shares which may be delivered in connection with Awards granted
thereafter, (B) the number and kind of Shares by which annual per-person Award limitations are measured under Section 4 hereof,
(C) the number and kind of Shares subject to or deliverable in respect of outstanding Awards, (D) the exercise price,
grant price or purchase price relating to any Award and/or make provision for payment of cash or other property in respect of any
outstanding Award, and (E) any other aspect of any Award that the Committee determines to be appropriate in order to prevent the
reduction or enlargement of benefits under any Award.

 

(ii) Adjustments
in Case of Certain Transactions. In the event of any merger, consolidation or other reorganization in which the Company
does not survive, or in the event of any Change in Control (and subject to the provisions of Section 9 of this Plan relating to
the vesting of Awards in the event of any Change in Control), any outstanding Awards may be dealt with in accordance with any of
the following approaches, without the requirement of obtaining any consent or agreement of a Participant as such, as determined
by the agreement effectuating the transaction or, if and to the extent not so determined, as determined by the Committee: (A) the
continuation of the outstanding Awards by the Company, if the Company is a surviving entity, (B) the assumption or substitution
for, as those terms are defined below, the outstanding Awards by the surviving entity or its parent or subsidiary, (C) full exercisability
or vesting and accelerated expiration of the outstanding Awards, or (D) settlement of the value of the outstanding Awards in cash
or cash equivalents or other property followed by cancellation of such Awards (which value, in the case of Options or Stock Appreciation
Rights, shall be measured by the amount, if any, by which the Fair Market Value of a Share exceeds the exercise or grant price
of the Option or Stock Appreciation Right as of the effective date of the transaction). For the purposes of this Plan, an Option,
Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Performance Award or Other Stock-Based Award shall
be considered assumed or substituted for if following the applicable transaction the Award confers the right to purchase or receive,
for each Share subject to the Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Performance
Award or Other Stock-Based Award immediately prior to the applicable transaction, on substantially the same vesting and other terms
and conditions as were applicable to the Award immediately prior to the applicable transaction, the consideration (whether stock,
cash or other securities or property) received in the applicable transaction by holders of Shares for each Share held on the effective
date of such 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 applicable transaction
is not solely common stock of the successor company or its parent or subsidiary, the Committee may, with the consent of the successor
company or its parent or subsidiary, provide that the consideration to be received upon the exercise or vesting of an Option, Stock
Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Performance Award or Other Stock-Based Award, for each
Share subject thereto, will be solely common stock of the successor company or its parent or subsidiary substantially equal in
fair market value to the per share consideration received by holders of Shares in the applicable transaction. The determination
of such substantial equality of value of consideration shall be made by the Committee in its sole discretion and its determination
shall be conclusive and binding. The Committee shall give written notice of any proposed transaction referred to in this Section
10(c)(ii) a reasonable period of time prior to the closing date for such transaction (which notice may be given either before or
after the approval of such transaction), in order that Participants may have a reasonable period of time prior to the closing date
of such transaction within which to exercise any Awards that are then exercisable (including any Awards that may become exercisable
upon the closing date of such transaction). A Participant may condition his or her exercise of any Awards upon the consummation
of the transaction.

 

    21

     

    

 

(iii) Other
Adjustments. The Committee or the Board is authorized to make adjustments in the terms and conditions of, and the criteria
included in, Awards (including Awards subject to satisfaction of performance goals, or performance goals and conditions relating
thereto) in recognition of unusual or nonrecurring events (including, without limitation, acquisitions and dispositions of businesses
and assets) affecting the Company, any Related Entity or any business unit, or the financial statements of the Company or any Related
Entity, or in response to changes in applicable laws, regulations, accounting principles, tax rates and regulations or business
conditions or in view of the Committee’s assessment of the business strategy of the Company, any Related Entity or business
unit thereof, performance of comparable organizations, economic and business conditions, personal performance of a Participant,
and any other circumstances deemed relevant.

 

(d) Award
Agreements. Each Award Agreement shall either be (a) in writing in a form
approved by the Committee and executed by the Company by an officer duly authorized to act on its behalf, or (b) an electronic
notice in a form approved by the Committee and recorded by the Company (or its designee) in an electronic recordkeeping system
used for the purpose of tracking one or more types of Awards as the Committee may provide; in each case and if required by the
Committee, the Award Agreement shall be executed or otherwise electronically accepted by the recipient of the Award in such form
and manner as the Committee may require. The Committee may authorize any officer of the Company to execute any or all Award Agreements
on behalf of the Company. The Award Agreement shall set forth the material terms and conditions of the Award as established by
the Committee consistent with the provisions of the Plan.

 

(e) Taxes.
The Company and any Related Entity are authorized to withhold from any Award granted, any payment relating to an Award under the
Plan, including from a distribution of Shares, or any payroll or other payment to a Participant, amounts of withholding and other
taxes due or potentially payable in connection with any transaction involving an Award, and to take such other action as the Committee
may deem advisable to enable the Company or any Related Entity and Participants to satisfy obligations for the payment of withholding
taxes and other tax obligations relating to any Award. This authority shall include authority to withhold or receive Shares or
other property and to make cash payments in respect thereof in satisfaction of a Participant’s tax obligations, either on
a mandatory or elective basis in the discretion of the Committee. The amount of withholding tax paid with respect to an Award
by the withholding of Shares otherwise deliverable pursuant to the Award or by delivering Shares already owned shall not exceed
the maximum statutory withholding required with respect to that Award (or such other limit as the Committee shall impose, including
without limitation, any limit imposed to avoid or limit any financial accounting expense relating to the Award).

 

(f) Changes
to the Plan and Awards. The Board may amend, alter, suspend, discontinue
or terminate the Plan, or the Committee’s authority to grant Awards under the Plan, without the consent of shareholders
or Participants, except that any amendment or alteration to the Plan shall be subject to the approval of the Company’s shareholders
not later than the annual meeting next following such Board action if such shareholder approval is required by any federal or
state law or regulation (including, without limitation, Rule 16b-3) or the rules of the Listing Market, and the Board may otherwise,
in its discretion, determine to submit other such changes to the Plan to shareholders for approval; provided that, except as otherwise
permitted by the Plan or Award Agreement, without the consent of an affected Participant, no such Board action may materially
and adversely affect the rights of such Participant under the terms of any previously granted and outstanding Award. The Committee
may waive any conditions or rights under, or amend, alter, suspend, discontinue or terminate any Award theretofore granted and
any Award Agreement relating thereto, except as otherwise provided in the Plan; provided that, except as otherwise permitted by
the Plan or Award Agreement, without the consent of an affected Participant, no such Committee or the Board action may materially
and adversely affect the rights of such Participant under terms of such Award.

 

    22

     

    

 

(g) Clawback
of Benefits.

 

(i) The Company
may (A) cause the cancellation of any Award, (B) require reimbursement of any Award by a Participant or Beneficiary, and (C) effect
any other right of recoupment of equity or other compensation provided under this Plan or otherwise in accordance with any Company
policies that currently exist or that may from time to time be adopted or modified in the future by the Company and/or applicable
law (each, a “Clawback Policy”). In addition, a Participant may be required to repay to the Company certain
previously paid compensation, whether provided under this Plan or an Award Agreement or otherwise, in accordance with any Clawback
Policy. By accepting an Award, a Participant is also agreeing to be bound by any existing or future Clawback Policy adopted by
the Company, or any amendments that may from time to time be made to the Clawback Policy in the future by the Company in its discretion
(including without limitation any Clawback Policy adopted or amended to comply with applicable laws or stock exchange requirements)
and is further agreeing that all of the Participant’s Award Agreements may be unilaterally amended by the Company, without
the Participant’s consent, to the extent that the Company in its discretion determines to be necessary or appropriate to
comply with any Clawback Policy.

 

(ii) If the
Participant, without the consent of the Company, while employed by or providing services to the Company or any Related Entity or
after termination of such employment or service, violates a non-competition, non-solicitation or non-disclosure covenant or agreement
or otherwise engages in activity that is in conflict with or adverse to the interest of the Company or any Related Entity, as determined
by the Committee in its sole discretion, then (i) any outstanding, vested or unvested, earned or unearned portion of the Award
may, at the Committee’s discretion, be canceled and (ii) the Committee, in its discretion, may require the Participant or
other person to whom any payment has been made or Shares or other property have been transferred in connection with the Award to
forfeit and pay over to the Company, on demand, all or any portion of the gain (whether or not taxable) realized upon the exercise
of any Option or Stock Appreciation Right and the value realized (whether or not taxable) on the vesting or payment of any other
Award during the time period specified in the Award Agreement or otherwise specified by the Committee

 

(g) Limitation
on Rights Conferred Under Plan. Neither the Plan nor any action taken hereunder
or under any Award shall be construed as (i) giving any Eligible Person or Participant the right to continue as an Eligible
Person or Participant or in the employ or service of the Company or a Related Entity; (ii) interfering in any way with the
right of the Company or a Related Entity to terminate any Eligible Person’s or Participant’s Continuous Service at
any time, (iii) giving an Eligible Person or Participant any claim to be granted any Award under the Plan or to be treated
uniformly with other Participants and Employees, or (iv) conferring on a Participant any of the rights of a shareholder of
the Company or any Related Entity including, without limitation, any right to receive dividends or distributions, any right to
vote or act by written consent, any right to attend meetings of shareholders or any right to receive any information concerning
the Company’s or any Related Entity’s business, financial condition, results of operation or prospects, unless and
until such time as the Participant is duly issued Shares on the stock books of the Company or any Related Entity in accordance
with the terms of an Award. None of the Company, its officers or its directors shall have any fiduciary obligation to the Participant
with respect to any Awards unless and until the Participant is duly issued Shares pursuant to the Award on the stock books of
the Company in accordance with the terms of an Award. Neither the Company, nor any Related Entity, nor any of their respective
officers, directors, representatives or agents is granting any rights under the Plan to the Participant whatsoever, oral or written,
express or implied, other than those rights expressly set forth in this Plan or the Award Agreement.

 

(h) Unfunded
Status of Awards; Creation of Trusts. The Plan is intended to constitute
an “unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant
or obligation to deliver Shares pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give any such
Participant any rights that are greater than those of a general creditor of the Company or Related Entity that issues the Award;
provided that the Committee may authorize the creation of trusts and deposit therein cash, Shares, other Awards or other property,
or make other arrangements to meet the obligations of the Company or Related Entity under the Plan. Such trusts or other arrangements
shall be consistent with the “unfunded” status of the Plan unless the Committee otherwise determines with the consent
of each affected Participant. The trustee of such trusts may be authorized to dispose of trust assets and reinvest the proceeds
in alternative investments, subject to such terms and conditions as the Committee may specify and in accordance with applicable
law.

 

    23

     

    

 

(i) Nonexclusivity
of the Plan. Neither the adoption of the Plan by the Board nor its submission
to the shareholders of the Company for approval shall be construed as creating any limitations on the power of the Board or a
committee thereof to adopt such other incentive arrangements as it may deem desirable.

 

(j) Payments
in the Event of Forfeitures; Fractional Shares. Unless otherwise determined
by the Committee, in the event of a forfeiture of an Award with respect to which a Participant paid cash or other consideration,
the Participant shall be repaid the amount of such cash or other consideration. No fractional Shares shall be issued or delivered
pursuant to the Plan or any Award. The Committee shall determine whether cash, other Awards or other property shall be issued
or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise
eliminated.

 

(k) Governing
Law. Except as otherwise provided in any Award Agreement, the validity,
construction and effect of the Plan, any rules and regulations under the Plan, and any Award Agreement shall be determined in
accordance with the laws of the State of Delaware, in each case, without giving effect to principles of conflict of laws, and
applicable federal law.

 

(l) Foreign
Laws. The Committee shall have the authority to adopt such modifications,
procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of foreign countries in which
the Company or its Related Entities may operate to assure the viability of the benefits from Awards granted to Participants performing
services in such countries and to meet the objectives of the Plan.

 

(m) Plan
Effective Date and Shareholder Approval; Termination of Plan. The Plan shall
become effective on the Effective Date, subject to subsequent approval, within 12 months of its adoption by the Board, by shareholders
of the Company eligible to vote in the election of directors, by a vote sufficient to meet the requirements of Code Section 422,
Rule 16b-3 under the Exchange Act (if applicable), applicable requirements under the rules of any stock exchange or automated
quotation system on which the Shares may be listed or quoted, and other laws, regulations, and obligations of the Company applicable
to the Plan. Awards may be granted subject to shareholder approval, but may not be exercised or otherwise settled in the event
the shareholder approval is not obtained. The Plan shall terminate at the earliest of (a) such time as no Shares remain available
for issuance under the Plan, (b) termination of this Plan by the Board, or (c) the tenth anniversary of the Effective Date.
Awards outstanding upon expiration of the Plan shall remain in effect until they have been exercised or terminated, or have expired.

 

(n) Construction
and Interpretation. Whenever used herein, nouns in the singular shall include the plural, and the masculine pronoun shall
include the feminine gender. Headings of Articles and Sections hereof are inserted for convenience and reference and constitute
no part of the Plan.

 

(o) Severability.
If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any
jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and
all provisions shall remain enforceable in any other jurisdiction.

 

 

24Exhibit
10.5

 

THIS
DEBENTURE AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN SECTION
3 OF THIS DEBENTURE TO THE SENIOR INDEBTEDNESS (AS DEFINED HEREIN), AND EACH HOLDER OF THIS DEBENTURE, BY ITS ACCEPTANCE HEREOF,
IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF SECTIONS 3 AND 12 OF THIS DEBENTURE.

 

THIS
DEBENTURE AND ITS HOLDER ARE ALSO SUBJECT TO THE TERMS AND CONDITIONS OF THE PURCHASE AGREEMENT (AS DEFINED BELOW). THIS
DEBENTURE MAY NOT BE SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS THE TRANSFEREE, PLEDGEE OR
OTHER APPLICABLE PARTY EXECUTES A JOINDER substantially in the form attached as Exhibit
B hereto. 

 

NEITHER
THIS DEBENTURE NOR THE SHARES OF COMMON STOCK INTO WHICH THIS DEBENTURE ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES HAVE
BEEN ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FILED BY THE COMPANY (AS DEFINED HEREIN) WITH THE U.S. SECURITIES AND EXCHANGE
COMMISSION COVERING SUCH SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
IS NOT REQUIRED, EXCEPT AS SET FORTH IN SECTION 7.2(D) OF THIS DEBENTURE. 

 

CONVERTIBLE
DEBENTURE

April
__, 2020

 

	$_____	Atlanta, GA

No.
A-1

 

AMERICAN
VIRTUAL CLOUD TECHNOLOGIES, INC., a Delaware corporation (the “Company”), for value received, hereby promises
to pay to _____________________ or its registered assigns (“Holder”), the principal sum of _______________________
Dollars ($_____), together with interest thereon as provided herein.

 

This
Convertible Debenture (this “Debenture”) is being issued pursuant to that certain Securities Purchase Agreement
dated as of April 3, 2020, to which the Company and the Holder are parties (the “Purchase Agreement”). Capitalized
terms used but not defined herein shall have the meanings given to them in the Purchase Agreement. This Debenture is one of a
series of Debentures in substantially the same form being issued in accordance with the provisions of the Purchase Agreement (the
“Other Debentures”). This Debenture and the Other Debentures are sometimes referred to collectively as the
“Debentures”.

 

    1

     

    

 

1. Definitions.
For purposes of this Debenture, the capitalized terms set forth below shall have the following meanings:

 

“Board”
means the board of directors of the Company.

 

“Business
Day” means each day, other than a Saturday or Sunday, on which banking institutions are not authorized or obligated
by law, regulation or executive order to close in Atlanta, Georgia.

 

“Change
in Control” means any one of the following after the Original Issuance Date and the consummation of the Initial Business
Combination (as such term is defined in the Purchase Agreement):

 

(a)
The acquisition by any individual, entity or group (within the meaning of Section 13(d) or 14(d) of the Exchange Act) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (i) the then outstanding
shares of Common Stock of the Company (the “Outstanding Company Common Stock”) or (y) 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”);

 

(b)
Individuals who, as of the Original Issuance Date, constitute the Board (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent
to the Original Issuance Date whose election, or nomination for election by the Company’s stockholders, was approved by
a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of either 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 individual, entity or group other than the
Board;

 

(c)
Consummation by the Company of a reorganization, merger, consolidation or other business combination (any of the foregoing, a
“Business Combination”) of the Company or any subsidiary of the Company with any other corporation or other
entity, in any case with respect to which the Outstanding Company Voting Securities outstanding immediately prior to such Business
Combination do not, immediately following such Business Combination, continue to represent (either by remaining outstanding or
being converted into voting securities of the resulting or surviving entity or any ultimate parent thereof) more than 55% of the
outstanding common stock and of the then outstanding voting securities entitled to vote generally in the election of directors
of the resulting or surviving entity (or any ultimate parent thereof); or

 

    2

     

    

 

(d)
(i) Consummation of a sale or other disposition of all or substantially all of the assets of the Company, other than to a corporation
or other person or entity with respect to which, following such sale or other disposition, more than 55% of, respectively, the
then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities
of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly,
by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities immediately prior to such sale or other disposition in substantially the
same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common Stock
and Outstanding Company Voting Securities as the case may be; or (ii) stockholder approval of a complete liquidation or dissolution
of the Company.

 

“Common
Stock” means the Company’s common stock, par value $0.001 per share.

 

“Conversion
Price” means $3.45, as may be adjusted from time to time as set forth in this Debenture.

 

“Original
Issuance Date” means April 7, 2020.

 

“Senior
Credit Agreement” means that certain Credit Agreement dated as of December 18, 2017, by and among Stratos Management
Systems, Inc., a Delaware corporation, as the prior borrower, Stratos Management Systems Holdings, LLC, as parent of such prior
borrower, and Senior Lender, as assigned and assumed by Stratos Management Systems, Inc. (formerly known as Tango Merger Sub Corp.),
a Delaware corporation, and the Company, collectively, as the new co-borrowers thereunder, pursuant to that certain Third Amendment
to Loan Documents dated as of the date hereof, or any credit agreement entered into by the Company and/or one or more of its subsidiaries
in replacement of such Credit Agreement, including all amendments, modifications or supplements to any of the foregoing.

 

“Senior
Credit Default” means any “Event of Default” as such term is defined in the Senior Credit Agreement.

 

“Senior
Credit Facility” means collectively, all financial accommodations extended by Senior Lender to Company and the other
“Borrowers” under the Senior Credit Agreement, including in each case, all deferrals, renewals, extensions, replacements
or refundings of such facility.

 

“Senior
Credit Termination” means the date upon which (a) the Senior Indebtedness (other than contingent obligations with respect
thereto) are satisfied in full and (b) all commitments of Senior Lender to extend financial accommodations with respect to the
Senior Credit Facility have been terminated.

 

“Senior
Lender” means Comerica Bank (together with its successors and assigns) or any other lender under any credit agreement
entered into by the Maker and/or one or more of its subsidiaries in replacement of the Senior Credit Agreement.

 

    3

     

    

 

“Senior
Loan Documents” means the “Loan Documents” as such term is defined in the Senior Credit Agreement, including
all amendments, modifications or supplements thereto.

 

“Stratos”
means Stratos Management Systems Holdings, LLC.

 

“Trading
Day” means any day on which the Common Stock is traded for any period on the over-the-counter bulletin board or on the
principal securities exchange or other securities market on which the Common Stock is then being traded.

 

“Triggering
Event” means the occurrence, at any time after the Original Issuance Date, of the closing price of the Common Stock
on the principal trading market for the Common Stock for any 40 Trading Days within a consecutive 60 Trading Day-period exceeding
$6.00, as adjusted for stock splits, stock dividends, reorganizations and recapitalizations affecting the Common Stock and the
Original Issuance Date.

 

2. Payments.

 

(a)
Beginning on the issuance date of this Debenture (the “Issuance Date”), the outstanding principal balance of
this Debenture shall bear interest, in arrears, at a rate per annum equal to ten percent (10%) (the “Base Rate”).
Accrued interest hereunder shall be payable quarterly on March 31, June 30, September 30 and December 31 of each calendar year,
with the first such payment to be made on June 30, 2020. Such first payment shall include interest only from the Issuance Date
until the date of payment. Interest shall be paid in additional debentures, substantially identical in the form of this Debenture
except upon maturity in which case accrued and unpaid interest shall be paid in cash. Interest shall be computed on the basis
of a 360-day year of twelve (12) 30-day months and shall accrue commencing on the Issuance Date. Notwithstanding the foregoing,
upon and following the occurrence of an Event of Default (as defined below), from the date of the Event of Default until such
Event of Default is cured, the Base Rate shall be increased to the lower of (i) fourteen percent (14%) and (ii) the maximum applicable
legal rate per annum (such lower rate, the “Default Rate”) and interest shall be payable in cash.

 

(b)
Subject to the provisions of Section 4 hereof relating to the conversion of this Debenture, the entire principal sum hereof, together
with accrued and unpaid interest thereon, shall be due and payable in cash on the earlier to occur of (i) such date, commencing
on or after October 7, 2022, as the Holder, at its sole option, upon not less than thirty (30) days’ prior written notice
to the Company, demands payment hereof and (ii) the occurrence of a Change in Control.

 

(c)
If any day on which any amount is payable pursuant under this Debenture is not a Business Day, then the amount otherwise payable
on that date will be made on the next succeeding day that is a Business Day (without any interest or other payment in respect
of such delay) (each such day on which principal or interest is payable pursuant hereto, a “Payment Date”).

 

(d)
In the event of any partial payment of principal or accrued interest, for whatever reason, any such partial payment of principal
and/or interest on the Debentures shall be allocated among the respective Debentures and holders thereof so that the amount of
such payments to each holder shall bear as nearly as practicable the same ratio to the aggregate amount then to be paid as the
principal amount of the Debentures then held by such holder bears to the aggregate principal amount of Debentures then outstanding.

 

    4

     

    

 

3. Ranking
and Subordination. Except as set forth in this Section 3, the indebtedness evidenced by this Debenture shall
rank equal in right of payment with all existing and future unsubordinated indebtedness of the Company. The indebtedness evidenced
by this Debenture and the guaranty described in Section 14 and the other indebtedness, obligations and liabilities of the Company,
Computex and its subsidiaries under the Purchase Agreement owing to Holder (collectively, the “Subordinated Indebtedness”)
are subordinate and junior to the prior payment in full of all Senior Indebtedness (as defined below) to the extent and in the
manner hereinafter set forth. The Holder agrees, from time to time as reasonably requested by the Company, to execute any documents
reasonably required by the Company’s lenders reaffirming the subordination provisions contained in this Debenture; provided,
however, that the existing rights of the Holder shall not be adversely affected thereby. For purposes of this Debenture and the
guaranty described in Section 14, the term “Senior Indebtedness” shall mean all senior indebtedness,
obligations and liabilities of the Company, Computex and Computex’s subsidiaries, whether outstanding on the date hereafter
or thereafter created, incurred, assumed, guaranteed or in effect under the Senior Credit Facility, together with all other sums
due thereon and all costs of collecting the same (including, without limit, reasonable attorney fees) for which such Person is
or at any time may be liable.

 

For
the avoidance of doubt, Company shall have the right to pay (or cause to be paid) to Holder, and Holder shall have the right to
receive and accept from Company, Computex and Computex’s subsidiaries, any and all regularly scheduled payments of the Subordinate
Indebtedness (or any portion thereof) due to Holder pursuant to the terms and provisions of this Debenture, the guaranty described
in Section 14, and/or the Purchase Agreement as and when such payments become due and payable; provided, that (x)
no Senior Credit Default (I) has occurred and is continuing as of the date of the proposed payment to Holder, or (II) would otherwise
result from such proposed payment being made to Holder and (y) no Insolvency Proceeding (as defined below) has occurred.

 

In
the event of any Insolvency Proceeding, the Senior Lender shall be entitled to receive payment in full of all Senior Indebtedness
before Holder is entitled to receive any subsequent payment on account of any Subordinated Indebtedness; provided, however,
that (x) in no event shall any such subordination impair the ability of the Company to issue or the rights of the Holder
to receive additional Debentures in respect of accrued and unpaid interest in accordance with Section 2 hereof and (y)
the foregoing shall not be deemed to require the repayment or reimbursement by Holder to Senior Lender of any amounts permitted
to be received by Holder with respect to the Subordinated Indebtedness in compliance with this Section 3 prior to the occurrence
of such Insolvency Proceeding.

 

During
the continuance of any Senior Credit Default, no cash payment shall be made with respect to the Subordinated Indebtedness (or
any renewals or extensions thereof) if written or telegraphic notice of such event of default has been given to the Company by
the Senior Lender. Should any payment, distribution or security or proceeds from these be received by Holder upon or with respect
to the Subordinated Indebtedness that is not otherwise permitted under this Section 3 prior to the Senior Credit Termination,
Holder shall immediately deliver same to the Senior Lender in the form received (except for endorsement or assignment by Holder
where required by the Senior Lender), for application on the Senior Indebtedness (whether or not then due and in such order of
maturity as the Senior Lender elects) and, until so delivered, the same shall be held in trust by Holder as the property of the
Senior Lender.

 

Until
the Senior Credit Termination, upon the occurrence and during the continuance of any Senior Credit Default and/or any Insolvency
Proceeding, Holder will not (without the prior consent of Senior Lender) ask for, demand, sue for, take or receive (by way of
voluntary payment, acceleration, set-off or counterclaim, foreclosure or other realization on security, dividends in bankruptcy
or otherwise), or offer to make any discharge or release of, any of the Subordinated Indebtedness, and Holder waives any such
rights with respect to the Subordinated Indebtedness. Holder shall not exercise any rights of subrogation or other similar rights
with respect to the Senior Indebtedness. This Section 3 constitutes a continuing agreement of subordination, as of any
date prior to the Senior Credit Termination, even though the outstanding balance of the Senior Indebtedness may, from time to
time, be zero.

 

    5

     

    

 

As
of the date hereof, the Subordinated Indebtedness is unsecured. To the extent the Subordinated Indebtedness is ever secured by
collateral also securing the Senior Indebtedness (referenced herein as “Shared Collateral”) and until the Senior
Credit Termination, Holder agrees it will not (without the prior consent of Senior Lender) exercise any of Holder’s rights
in any such Shared Collateral now or later securing the Subordinated Indebtedness. As of any date prior to the Senior Credit Termination,
all rights of Holder in any Shared Collateral now or later securing the Subordinated Indebtedness are subordinated to all rights
of the Senior Lender now or later existing in any of the same Shared Collateral. The relative priorities of the Senior Lender
and Holder in the any Shared Collateral as set forth in this Section 3 control irrespective of the time, method or order
of attachment or perfection of the liens and security interests acquired by the parties in the Shared Collateral and irrespective
of the priorities as would otherwise be determined by reference to the Uniform Commercial Code or other applicable laws. As of
any date prior to the Senior Credit Termination, Holder shall not contest the validity, priority or perfection of the security
interest in or other lien upon the Shared Collateral (regardless of whether the Senior Lender’s security interest in or
lien upon the Shared Collateral is valid or perfected). The priorities of any liens or security interests of the parties in any
property of the Company, Computex or any of its subsidiaries other than the Shared Collateral are not affected by this Section
3 and shall be determined by reference to applicable law. The Senior Lender’s rights under this Section 3 are
in addition to, and not in substitution of, its rights under any other subordination agreement with Holder.

 

To
the extent the Subordinated Indebtedness is ever secured by any Shared Collateral as of any date prior to the Senior Credit Termination,
the relative rights of the Senior Lender and the Holder in or to any distributions from or in respect of any such Shared Collateral
or proceeds of such Shared Collateral, including without limitation, with respect to any rights acquired by Holder under Sections
363 and 364 of the Bankruptcy Code (as defined herein) shall continue after the filing of such petition on the same basis as prior
to the date of such filing. If any Insolvency Proceeding shall occur, the Holder shall file appropriate claims or proofs of claim
in respect of this Debenture at least 30 days prior to the expiration of the period during which such claims or proofs of claims
may be filed without the approval of the court or any third party. Upon the failure of the Holder to take such action, the Senior
Lender is hereby irrevocably authorized and empowered (in its own name or otherwise), but shall have no obligation, to demand,
sue for, collect and receive every payment or distribution referred to in respect of the Subordinated Indebtedness and to file
claims and proofs of claim and take such other action as it may deem necessary or advisable for the exercise of enforcement of
any of the rights or interests of Holder with respect to the Subordinated Indebtedness. If any of the Company, Computex or its
subsidiaries shall become subject to an Insolvency Proceeding, (i) the Holder will not oppose the Senior Lender’s requests
for adequate protection payments, post-petition interest, or for additional collateral or replacement liens or security interests
in connection with any use of cash collateral or financing for a debtor-in-possession and (ii) the Holder will not seek or request
adequate protection or adequate protection payments in any such proceeding. The Holder agrees that it will not object to or oppose
a sale or other disposition of any assets included in the Shared Collateral securing the Senior Indebtedness (or any portion thereof)
free and clear of liens, security interests or other claims under Section 363 of the Bankruptcy Code or any other provision of
the Bankruptcy Code if the Senior Lender has consented to such sale or disposition of such assets and the Holder will be deemed
to have (a) consented under Section 363 of the Bankruptcy Code (and otherwise) to any such sale or disposition supported by the
Senior Lender and (b) concurrently with the closing of such sale, the Holder shall release its liens and security interests, if
any, in such assets, property or interests consisting of Shared Collateral. The Holder shall not support or vote in favor of any
plan of reorganization (and each shall be deemed to have voted to reject any plan of reorganization) unless such plan either (a)
results in the Senior Indebtedness being paid in full, (b) is accepted by the Senior Lender or (c) incorporates this Section
3 by reference and continues the rights and priorities of the Senior Lender and the Holder in such Shared Collateral subsequent
to the effective date of such plan. To the extent that the Holder has or acquires rights under Section 363 or Section 364 of the
Bankruptcy Code with respect to any of the Shared Collateral, the Holder agrees not to assert any of such rights without the prior
written consent of the Senior Lender; provided that if requested by the Senior Lender, the Holder shall timely exercise such rights
in the manner reasonably requested by the Senior Lender, including any rights to payments in respect of such rights. The Holder
acknowledges and agrees that the Senior Indebtedness and the Subordinated Indebtedness should be separately classified in any
plan of reorganization proposed or adopted in any case under the Bankruptcy Code or any other proceeding (including, without limitation,
for purposes of Section 1122 of the Bankruptcy Code). If any of the Company, Computex or its subsidiaries shall become subject
to a case under the Bankruptcy Code, all proceeds of Shared Collateral shall be applied to the Senior Indebtedness until such
Senior Indebtedness is paid in full before any distribution shall be made to the Holder; if any such distribution is received
by the Holder, it shall be paid or delivered directly to the Senior Lender. Except as otherwise provided herein, in any case or
proceeding under the Bankruptcy Code or any other insolvency, bankruptcy, receivership, liquidation (voluntary or involuntary),
reorganization or other similar proceeding involving the Company, Computex, any of its subsidiaries or their respective properties
(such case or proceeding referred to as an “Insolvency Proceeding”), the Holder may exercise its respective
rights and remedies as an unsecured creditor only against the Senior Lender in accordance with applicable law; provided that the
Holder shall not take any action that is, or would reasonably be expected to be, otherwise inconsistent with the terms of this
Section 3. As used herein, the term “Bankruptcy Code” means the provisions of Title 11 of the United
States Code, 11 U.S.C.§§101 et seq, as amended, and any successor statute.

 

    6

     

    

 

Holder
waives any duty on the part of the Senior Lender, and agrees that Holder is not relying upon nor expecting the Senior Lender,
to disclose to Holder any fact now or later known by the Senior Lender, whether relating to the operations or condition of the
Company, Computex or any of its subsidiaries, the existence, liabilities or financial condition of any guarantor of the Senior
Indebtedness, the occurrence of any default with respect to the Senior Indebtedness or otherwise, notwithstanding any effect this
fact may have upon Holder’s risk or Holder’s rights against such Person.

 

The
Senior Lender, in its sole discretion, without notice to Holder, may release, exchange, enforce and otherwise deal with any security
now or later held by the Senior Lender for payment of the Senior Indebtedness or release any party now or later liable for payment
of the Senior Indebtedness without affecting in any manner the Senior Lender’s rights under this Section 3. Holder
acknowledges and agrees that the Senior Lender has no obligation to acquire or perfect any lien on or security interest in any
asset(s), whether realty or personalty, to secure payment of the Senior Indebtedness, and Holder is not relying upon assets in
which the Senior Lender has or may have a lien or security interest for payment of the Senior Indebtedness.

 

Notwithstanding
any prior revocation, termination, surrender, or discharge of the Senior Indebtedness in whole or in part, the effectiveness of
this Section 3 shall automatically continue or be reinstated in the event that any payment received or credit given by
the Senior Lender in respect of the Senior Indebtedness is returned, disgorged, or rescinded under any applicable state or federal
law, including, without limitation, laws pertaining to bankruptcy or insolvency, in which case the subordination provisions in
this Section 3 shall be enforceable against Holder as if the returned, disgorged, or rescinded payment or credit had not
been received or given by the Senior Lender, and whether or not the Senior Lender relied upon this payment or credit or changed
its position as a consequence of it. In the event of continuation or reinstatement of the subordination provisions in this Section
3, Holder agrees upon demand by the Senior Lender to execute and deliver to the Senior Lender those documents which the Senior
Lender reasonably determines are appropriate to further evidence (in the public records or otherwise) this continuation or reinstatement,
although the failure of Holder to do so shall not affect in any way the reinstatement or continuation.

 

Holder
waives, to the extent not expressly prohibited by applicable law, any right to require the Senior Lender to: (a) proceed against
any person or property; (b) give notice of the terms, time and place of any public or private sale of personal property security
held from Company or any other Person, or otherwise comply with the provisions of Section 9.611 or 9.621 of the Texas or other
applicable Uniform Commercial Code; or (c) pursue any other remedy in the Senior Lender’s power. Holder waives notice of
acceptance of this Debenture and presentment, demand, protest, notice of protest, dishonor, notice of dishonor, notice of default,
notice of intent to accelerate or demand payment or notice of acceleration of any Senior Indebtedness, any and all other notices
to which Holder might otherwise be entitled, and diligence in collecting any Senior Indebtedness, and agrees that Senior Lender
may, once or any number of times, modify the terms of any Senior Indebtedness, compromise, extend, increase, accelerate, renew
or forbear to enforce payment of any or all Senior Indebtedness, or permit the Company, Computex and its subsidiaries to incur
additional Senior Indebtedness, all without notice to Holder and without affecting in any manner the unconditional obligations
of Holder under this Section 3.

 

4. Conversion.

 

4.1.
Conversion Rights.

 

(a)
Optional Conversion. The unpaid principal amount of this Debenture (together with all accrued but unpaid interest thereon)
shall be convertible, in whole or in part, at the option of the Holder at any time prior to the payment in full of the principal
amount of this Debenture (together with all accrued but unpaid interest thereon), into such number of shares of fully paid and
non-assessable shares of Common Stock as is determined by dividing the principal amount of the Debenture so converted (together
with all accrued but unpaid interest thereon) by the Conversion Price (the “Holder Conversion Right”).

 

(b)
Mandatory Conversion. If a Triggering Event occurs and provided that (i) the Company is not in breach of its obligations
under the Registration Rights Agreement and (ii) the shares of Common Stock into which this Debenture and the Other Debentures
are then convertible may be freely resold by each Holder without restriction under applicable securities laws whether pursuant
to an effective registration statement or otherwise, then the unpaid principal amount of this Debenture (together with all accrued
but unpaid interest thereon) shall automatically be converted as of the 5:00 p.m. Atlanta time on the sixth (6th) Trading
Day (the “Mandatory Conversion Date”) following the delivery to the Holders of written notice of such Triggering
Event accompanied by a reasonably detailed calculation substantiating the occurrence of such Triggering Event into such number
of shares of fully paid and non-assessable shares of Common Stock as is determined by dividing the principal amount of the Debenture
(together with all accrued but unpaid interest thereon) by the Conversion Price (a “Mandatory Conversion”).

 

    7

     

    

 

4.2.
Issuance of Certificates. The Holder Conversion Right may be exercised by the Holder by the surrender of this Debenture
(or of any replacement Debenture issued hereunder) with the conversion notice attached hereto duly executed, at the principal
office of the Company or the transfer agent of the Company. Conversion shall be deemed to have been effected on (a) in the case
of the Holder Conversion Right, the date that such delivery of the Debenture and conversion notice is actually made, or (b) in
the case of Mandatory Conversion, the Mandatory Conversion Date (as applicable, the “Conversion Date”). As
promptly as practicable, and in any event within three (3) Trading Days, after a Conversion Date and the Company’s receipt
of the Debenture being converted (and the conversion notice, if applicable) (such fifth Trading Day thereafter, the “Share
Delivery Date”), the Company shall issue and deliver to the Holder a certificate or certificates for the number of full
shares of Common Stock to which the Holder is entitled (or evidence of the issuance of such shares in book entry form) and a check
or cash with respect to any fractional interest in a share of Common Stock as provided in Section 4.4. The Company shall not be
obligated to issue Common Stock certificates in the name of any party other than the Holders of the respective Debentures, absent
full compliance with the provisions of Section 7 hereof. The person in whose name the certificate or certificates for Common Stock
are to be issued shall be deemed to have become a stockholder of record on the next succeeding day on which the transfer books
are open, but the Conversion Price shall be that in effect on the Conversion Date. All rights with respect to the Debentures (or
any portion thereof) that are converted pursuant to this Section 4, including the rights to receive interest and notices, shall
terminate upon conversion pursuant to this Section 4.2. Upon conversion of only a portion of this Debenture, the Company shall
issue and deliver to the Holder hereof, at the expense of the Company, a new Debenture covering the principal amount of this Debenture
not converted, which new Debenture shall entitle the holder thereof to interest on the principal amount thereof to the same extent
as if the unconverted portion of this Debenture had not been surrendered for conversion.

 

4.3.
Reservation of Stock Issuable Upon Conversion. The Company covenants that, for so long as any Debentures remain outstanding,
the Company will at all times have authorized and reserved for the purpose of issue upon exercise of the Holder Conversion Right
or upon Mandatory Conversion, a sufficient number of shares of Common Stock to provide for the full exercise of the Holder Conversion
Right or the conversion pursuant to Mandatory Conversion.

 

4.4.
Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Debenture. In lieu
of any fractional shares to which the Holder would otherwise be entitled, the Company shall pay cash equal to the product of such
fraction multiplied by the fair value of one share of the Company’s Common Stock on the Conversion Date, which shall be
the closing price of the Common Stock on the Conversion Date as reported on the principal trading market therefor or in the absence
of any such closing price, as determined in good faith by the Board.

 

4.5. Adjustment
of Conversion Price. The Conversion Price and the number and kind of securities which may be received upon the exercise
of the Holder Conversion Right or the Company Conversion Right shall be subject to the adjustment from time to time upon the happening
of certain events, as follows:

 

(a)
Adjustment for Stock Splits and Combinations. If the Company shall at any time or from time to time after the date hereof
effect a subdivision of the outstanding Common Stock, the Conversion Price then in effect immediately before that subdivision
shall be proportionately decreased, and conversely, if the Company shall at any time or from time to time after the date hereof
combine the outstanding shares of Common Stock, the Conversion Price then in effect immediately before the combination shall be
proportionately increased. Any adjustment under this Section 4.5(a) shall become effective at the close of business on the date
the subdivision or combination becomes effective.

 

(b)
Adjustment for Certain Dividends and Distributions. In the event the Company shall at any time or from time to time after
the date hereof make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend
or other distribution payable in additional shares of Common Stock, then and in each such event the Conversion Price then in effect
shall be decreased as of the time of such issuance or, in the event such a record date shall have been fixed, as of the close
of business on such record date, by multiplying the Conversion Price then in effect by a fraction:

 

(i)
the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date; and

 

(ii)
the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of
such dividend or distribution; provided, however, if such record date shall have been fixed and such dividend is not fully
paid or if such distribution is not fully made on the date fixed therefor, the Conversion Price shall be recomputed accordingly
as of the close of business on such record date and thereafter such Conversion Price shall be adjusted pursuant to this Section
4.5(b) as of the time of actual payment of such dividends or distributions.

 

    8

     

    

 

(c)
Adjustments for Other Dividends and Distributions. In the event the Company at any time or from time to time after the
date hereof shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a
dividend or other distribution payable in securities of the Company other than shares of Common Stock, then and in each such event
provisions shall be made so that the holders of Debentures shall receive upon conversion thereof in addition to the number of
shares of Common Stock receivable thereupon, the amount of securities of the Company which they would have received had their
Debentures been converted into Common Stock on such record date and had thereafter, during the period from the date of such event
to and including the Conversion Date, retained such securities (together with any distributions payable thereon during such period)
receivable by them as aforesaid during such period, giving application to all adjustments called for during such period under
this Section 4.5 with respect to the rights of the holders of the Debentures.

 

(d)
Adjustment for Reclassification, Exchange or Substitution. If the Common Stock issuable upon the conversion of the Debentures
shall be changed into the same or different number of shares of any class or classes of stock, whether by capital reorganization,
reclassification or otherwise (other than a subdivision or combination of shares or stock dividend provided for above, or a reorganization,
merger, consolidation or sale of assets provided for in Section 4.5(e) below), then and in each such event the holder of each
Debenture shall have the right thereafter to convert each Debenture into the kind and amount of shares of stock and other securities
and property receivable upon such reorganization, reclassification or other change, as holders of the number of shares of Common
Stock into which such Debenture might have been converted immediately prior to such reorganization, reclassification or change,
all subject to further adjustment as provided herein.

 

(e)
Reorganization, Merger, Consolidation or Sale of Assets. If at any time or from time to time there shall be a capital reorganization
of the Common Stock (other than a subdivision, combination, reclassification or exchange of shares provided for elsewhere in this
Section 4.5) or a merger or consolidation of the Company with or into another corporation or entity, or the sale of all or substantially
all of the Company’s properties and assets to any other person, then, as a part of such reorganization, merger, consolidation
or sale, provision shall be made so that the holders of the Debentures shall thereafter be entitled to receive upon conversion
of the Debentures, the number of shares of stock or other securities or property of the Company, or of the successor corporation
resulting from such merger or consolidation or sale, to which a holder of Common Stock deliverable upon conversion would have
been entitled on such capital reorganization, merger, consolidation, or sale. In any such case, appropriate adjustment shall be
made in the application of the provisions of this Section 4.5 with respect to the rights of the holders of the Debentures after
the reorganization, merger, consolidation or sale to the end that the provisions of this Section 4.5 (including adjustment of
the Conversion Price then in effect and the number of shares receivable upon conversion of the Debentures) shall be applicable
after that event as nearly equivalent as may be practicable.

 

    9

     

    

 

(f)
Adjustments for Dilutive Issuances.

 

(i)
Special Definitions. For purposes of this Section 4.5(f), the following definitions shall apply:

 

(1)
“Additional Shares of Common Stock” shall mean all shares of Common Stock issued (or, pursuant to Section 4.5(f)(ii),
deemed to be issued) by the Company after the Original Issuance Date, other than (I) the following shares of Common Stock and
(II) shares of Common Stock deemed issued pursuant to the following Options and Convertible Securities (clauses (I) and (II),
collectively, “Exempted Securities”):

 

(I)
securities issued pursuant to the conversion or exercise of Options or Convertible Securities issued or outstanding on or prior
to the Original Issuance Date (so long as the conversion or exercise prices of such securities are not amended to lower such price
and/or adversely affect the Holder);

 

(II)
the Other Debentures, the Warrants (as such term is defined in the Purchase Agreement) and any additional debentures or other
securities issued as payment of interest on the Debentures;

 

(III)
shares of Common Stock, Options or Convertible Securities issued by reason of a dividend, stock split, split-up or other distribution
on shares of Common Stock that is covered by Section 4.5(a) through Section 4.5(e);

 

(IV)
shares of Common Stock or Options issued to employees or directors of, or consultants or advisors to, the Company or any of its
subsidiaries pursuant to a plan, agreement or arrangement approved by the Board and the holders of the Common Stock;

 

(V)
shares of Common Stock or Convertible Securities actually issued upon the exercise of Options or shares of Common Stock actually
issued upon the conversion or exchange of Convertible Securities, in each case provided such issuance is pursuant to the terms
of such Option or Convertible Security;

 

(VI)
shares of Common Stock, Options or Convertible Securities issued to banks, equipment lessors or other financial institutions,
or to real property lessors, as a customary “equity sweetener” pursuant to a bona fide debt financing, equipment leasing
or real property leasing transaction approved by the Board; and

 

(VII)
shares of Common Stock, Options or Convertible Securities issued pursuant to the acquisition of another corporation or other business
by the Company or any of its subsidiaries by merger, purchase of substantially all of the assets or other reorganization or to
a joint venture agreement, contribution agreement or similar arrangement, provided that such issuances are approved by the Board.

 

    10

     

    

 

(2)
“Common Stock Deemed Outstanding” means, at any given time, the number of shares of Common Stock actually outstanding
at such time, plus the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any Options or Convertible
Securities then outstanding, regardless of whether the Options or Convertible Securities are actually exercisable, convertible
or exchangeable at such time.

 

(3)
“Convertible Securities” shall mean any evidences of indebtedness, shares or other securities directly or indirectly
convertible into or exchangeable for Common Stock, but excluding Options.

 

(4)
“Option” shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock
or Convertible Securities.

 

(ii)
Deemed Issue of Additional Shares of Common Stock.

 

(A)
If the Company at any time or from time to time after the Original Issuance Date shall issue any Options or Convertible Securities
(excluding Options or Convertible Securities which are themselves Exempted Securities) or shall fix a record date for the determination
of holders of any class of securities entitled to receive any such Options or Convertible Securities, then the maximum number
of shares of Common Stock (as set forth in the instrument relating thereto, assuming the satisfaction of any conditions to exercisability,
convertibility or exchangeability but without regard to any provision contained therein for a subsequent adjustment of such number)
issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange
of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue or,
in case such a record date shall have been fixed, as of the close of business on such record date.

 

(B)
If the terms of any Option or Convertible Security, the issuance of which resulted in an adjustment to the Conversion Price pursuant
to the terms of Section 4.5(f)(iii), are revised as a result of an amendment to such terms or any other adjustment pursuant to
the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution
or similar provisions of such Option or Convertible Security) to provide for either (1) any increase or decrease in the number
of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any such Option or Convertible Security or
(2) any increase or decrease in the consideration payable to the Company upon such exercise, conversion and/or exchange, then,
effective upon such increase or decrease becoming effective, the Conversion Price computed upon the original issue of such Option
or Convertible Security (or upon the occurrence of a record date with respect thereto) shall be readjusted to such Conversion
Price as would have obtained had such revised terms been in effect upon the original date of issuance of such Option or Convertible
Security. Notwithstanding the foregoing, no readjustment pursuant to this Section 4.5(f)(ii)(B) shall have the effect of increasing
the Conversion Price to an amount which exceeds the lower of (i) the Conversion Price in effect immediately prior to the original
adjustment made as a result of the issuance of such Option or Convertible Security, or (ii) the Conversion Price that would have
resulted from any issuances of Additional Shares of Common Stock (other than deemed issuances of Additional Shares of Common Stock
as a result of the issuance of such Option or Convertible Security) between the original adjustment date and such readjustment
date.

 

    11

     

    

 

(C)
If the terms of any Option or Convertible Security (excluding Options or Convertible Securities which are themselves Exempted
Securities), the issuance of which did not result in an adjustment to the Conversion Price pursuant to the terms of Section 4.5(f)(iii)
(either because the consideration per share (determined pursuant to Section 4.5(f)(iv)) of the Additional Shares of Common Stock
subject thereto was equal to or greater than the Conversion Price then in effect, or because such Option or Convertible Security
was issued before the Original Issuance Date), are revised after the Original Issuance Date as a result of an amendment to such
terms or any other adjustment pursuant to the provisions of such Option or Convertible Security to provide for either (1) any
increase in the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any such Option or Convertible
Security or (2) any decrease in the consideration payable to the Company upon such exercise, conversion or exchange, then such
Option or Convertible Security, as so amended or adjusted, and the Additional Shares of Common Stock subject thereto (determined
in the manner provided in Section 4.5(f)(ii)(1) shall be deemed to have been issued effective upon such increase or decrease becoming
effective.

 

(D)
Upon the expiration or termination of any unexercised Option or unconverted or unexchanged Convertible Security (or portion thereof)
which resulted (either upon its original issuance or upon a revision of its terms) in an adjustment to the Conversion Price pursuant
to the terms of Section 4.5(f)(iii), the Conversion Price shall be readjusted to such Conversion Price as would have obtained
had such Option or Convertible Security (or portion thereof) never been issued.

 

(E)
If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security,
or the consideration payable to the Company upon such exercise, conversion and/or exchange, is calculable at the time such Option
or Convertible Security is issued or amended but is subject to adjustment based upon subsequent events, any adjustment to the
Conversion Price provided for in this Section 4.5(f)(ii) shall be effected at the time of such issuance or amendment based on
such number of shares or amount of consideration without regard to any provisions for subsequent adjustments (and any subsequent
adjustments shall be treated as provided in clauses (B) and (C) of this Section 4.5(f)(ii)).  If the number of shares
of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration
payable to the Company upon such exercise, conversion and/or exchange, cannot be calculated at all at the time such Option or
Convertible Security is issued or amended, any adjustment to the Conversion Price that would result under the terms of this Section
4.5(f)(ii) at the time of such issuance or amendment shall instead be effected at the time such number of shares and/or amount
of consideration is first calculable (even if subject to subsequent adjustments), assuming for purposes of calculating such adjustment
to the Conversion Price that such issuance or amendment took place at the time such calculation can first be made.

 

    12

     

    

 

(iii)
Adjustment of Conversion Price Upon Issuance of Additional Shares of Common Stock.  In the event the Company
shall, at any time after the Original Issuance Date and for so long as this Debenture remains outstanding, issue Additional Shares
of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to Section 4.5(f)(ii)), without consideration
or for a consideration per share (the “New Issuance Price”) less than the applicable Conversion Price (the
“Applicable Price”) in effect immediately prior to such issue (each, a “Dilutive Issuance”),
then the Conversion Price shall be reduced, concurrently with such issue, to an amount equal to the lowest price per share at
which such share of Common Stock has been issued or sold (or is deemed to have been issued or sold, in the case of Additional
Shares of Common Stock deemed to be issued pursuant to Section 4.5(f)(ii)) pursuant to the Dilutive Issuance; provided, that if
such issuance or sale (or deemed issuance or sale) was without consideration, then the Company shall be deemed to have received
an aggregate of $0.001 of consideration for all such shares so issued or deemed to be issued.

 

(iv)
Determination of Consideration. For purposes of this Section 4.5(f)(iv), the consideration received by the Company
for the issue of any Additional Shares of Common Stock shall be computed as follows:

 

(A)
Cash and Property. Such consideration shall:

 

(I)
insofar as it consists of cash, be computed at the aggregate amount of cash received by the Company, excluding amounts paid or
payable for accrued interest;

 

(II)
insofar as it consists of property other than cash, be computed at the fair market value thereof at the time of such issue, as
determined in good faith by the Board; and

 

(III)
in the event Additional Shares of Common Stock are issued together with other shares or securities or other assets of the Company
for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (I)
and (II) above, as determined in good faith by the Board and the Holders of a majority in outstanding principal amount of the
Debentures.

 

(B)
Options and Convertible Securities.  The consideration per share received by the Company for Additional Shares
of Common Stock deemed to have been issued pursuant to Section 4.5(f)(ii), relating to Options and Convertible Securities, shall
be determined by dividing:

 

(I)
the total amount, if any, received or receivable by the Company as consideration for the issue of such Options or Convertible
Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without
regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise
of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities,
the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, by

  

    13

     

    

 

 (II)
the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision
contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or
exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for
Convertible Securities and the conversion or exchange of such Convertible Securities.

 

(v)
Multiple Closing Dates.  In the event the Company shall issue on more than one date Additional Shares of Common
Stock that are a part of one transaction or a series of related transactions and that would result in an adjustment to the Conversion
Price pursuant to the terms of Section 4.5(f)(iii), then, upon the final such issuance, the Conversion Price shall be readjusted
to give effect to all such issuances as if they occurred on the date of the first such issuance (and without giving effect to
any additional adjustments as a result of any such subsequent issuances within such period).

 

(g)
Minimum Adjustment. No adjustment of the Conversion Price, however, shall be made in an amount less than one cent, but
any such lesser adjustment shall be carried forward and shall be made at the time and together with the next subsequent adjustment
which together with any adjustments so carried forward shall amount to one cent or more.

 

(h)
Certificate of Adjustment. Upon the occurrence of each adjustment or readjustment of the applicable Conversion Price pursuant
to this Section 4.5, the Company shall promptly compute such adjustment or readjustment in accordance with the terms hereof and
prepare and furnish to each holder of Debentures a certificate, signed by an officer of the Company, setting forth such adjustment
or readjustment and showing in reasonable detail the facts upon which such adjustment or readjustment is based.

 

(i)
Notices of Record Date. If:

 

(i)
the Company shall set a record date for the purpose of entitling the holders of its shares of Common Stock to receive a dividend,
or any other distribution, payable otherwise than in cash;

 

(ii)
the Company shall set a record date for the purpose of entitling the holders of its shares of Common Stock to subscribe for or
purchase any shares of any class or to receive any other rights;

 

(iii)
there shall occur any capital reorganization of the Company, reclassification of the shares of the Company (other than a subdivision
or combination of its outstanding Common Stock), consolidation or merger of the Company with or into another corporation, or conveyance
of all or substantially all of the assets of the Company to another corporation; or

 

    14

     

    

 

(iv)
there shall occur a voluntary or involuntary dissolution, liquidation, or winding up of the Company;

 

then,
and in any such case, the Company shall cause to be sent to the holders of record of the outstanding Debentures, at least ten
Trading Days prior to the dates hereinafter specified, a written notice stating the date (x) which has been set as the record
date for the purpose of such dividend, distribution, or rights, or (y) on which such reclassification, reorganization, consolidation,
merger, conveyance, dissolution, liquidation, or winding up is to take place and the record date as of which holders of Common
Stock of record shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such
reclassification, reorganization, consolidation, merger, conveyance, dissolution, liquidation, or winding up.

 

4.6.
Limitations on Number of Shares Issuable. Notwithstanding anything herein to the contrary herein, provided that the Common
Stock remains listed for trading on the Nasdaq Stock Market or other national securities exchange, the aggregate number of shares
of Common Stock issued upon conversion of the Debentures, together with the aggregate number of shares of Common Stock issued
upon exercise of the Warrants, shall not exceed 19.9% of either (a) the total number of shares of Common Stock outstanding on
the date hereof or (b) the total voting power of the Company’s securities outstanding on the date hereof that are entitled
to vote on a matter being voted on by holders of the Common Stock, until the 21st day after the date (the “Mailing
Date”) that the Information Statement was sent or given to the Company’s stockholders in accordance with Regulation
14C under the Exchange Act. The Company shall provide prompt notice of the Mailing Date to each of the Holders immediately following
its occurrence.

 

4.7.
Registration, Exchange and Transfer. The Company will keep a register in which, subject to such reasonable regulations
as it may prescribe, it will register all Debentures. No transfer of this Debenture shall be valid as against the Company unless
made upon such register. This Debenture is subject to the restrictions on transfer set forth on the face hereof. Upon surrender
for transfer of this Debenture and compliance with said restrictions on transfer, the Company shall execute and deliver in the
name of the transferee or transferees a new Debenture or Debentures for a like principal amount.

 

This
Debenture, if presented for transfer, exchange, redemption or payment, shall (if so required by the Company) be duly endorsed
by, or be accompanied by instruments of transfer in form satisfactory to the Company duly executed by, the registered Holder or
by his duly authorized attorney.

 

Any
exchange or transfer shall be without charge, except that the Company may require payment of the sum sufficient to cover any processing
cost, tax or governmental charge that may be imposed in relation thereto.

 

The
Company may deem and treat the registered Holder hereof as the absolute owner hereof (whether or not this Debenture shall be overdue
and notwithstanding any notation of ownership or other writing hereon by anyone other than the Company), for the purpose of receiving
payment of or on account of the principal hereof and interest hereon, for the conversion hereof and for all other purposes, and
the Company shall not be affected by any notice to the contrary.

 

    15

     

    

 

5. Events
of Default.

 

5.1. Definitions
and Effect. In case one or more of the following “Events of Default” shall have occurred and be continuing:

 

(i)
default in the payment of any amount due under this Debenture;

 

(ii)
default in the performance of any covenant or agreement contained in this Debenture (other than as set forth in clause (i) of
this Section 5.1), the Purchase Agreement, the Warrants or the Registration Rights Agreement (as such term is defined in the Purchase
Agreement) and such default is not fully cured within 15 days after the Holder delivers written notice to the Company of the occurrence
thereof;

 

(iii)
any material representation or warranty made by the Company in the Purchase Agreement shall prove to have been false or incorrect
or breached in a material respect on the date as of which made and the Holder delivers written notice to the Company of the occurrence
thereof;

 

(iv)
the Company shall have admitted in writing its inability to pay its debts as they mature, or shall have made an assignment for
the benefit of creditors, or shall have been adjudicated bankrupt;

 

(v)
a trustee or receiver of the Company, or of any substantial part of the assets of the Company, shall have been appointed and,
if appointed in a proceeding brought against the Company, the Company by any action or failure to act shall have indicated its
approval of, consent to or acquiescence in such appointment, or, within 60 days after such appointment, such appointment shall
not have been vacated, or stayed on appeal or otherwise, or shall not otherwise have ceased to continue in effect;

 

(vi)
proceedings involving the Company shall have been commenced by or against the Company under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation law or statute of the federal government, or any state government,
and, if such proceedings shall have been instituted against the Company, or the Company by any action or failure to act shall
have indicated its approval of, consent to, or acquiescence therein, or an order shall have been entered approving the petition
in such proceedings, and within 60 days after the entry thereof, such order shall not have been vacated or stayed on appeal or
otherwise, or shall not otherwise have ceased to continue in effect; or

 

(vii)
one or more judgments for the payment of money in an aggregate amount in excess of $1,000,000 shall be rendered against the Company
and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively
stayed, which judgments are not stayed on appeal or otherwise being appropriately contested in good faith by proper proceedings
diligently pursued;

 

    16

     

    

 

then
and in each and every such case, the holders of a majority in aggregate principal amount of then-outstanding Debentures may declare
the principal and accrued but unpaid interest of all the Debentures to be due and payable immediately, by written notice to the
Company, and upon any such declaration the same shall become and shall be immediately due and payable, subject to the subordination
provisions of Section 3 hereof. At any time after such declaration of acceleration has been made, and before a judgment or decree
for payment of money due has been obtained, the holders of a majority in aggregate principal amount of the then-outstanding Debentures
may, by written notice to the Company, rescind and annul such declaration. From and after the occurrence, and during the continuance,
of the any Event of Default, irrespective of any declaration of maturity or default, all amounts remaining unpaid or thereafter
accruing under this Debenture shall bear interest at a rate equal to the Default Rate. Such Default Rate shall also be charged
on the amounts owed by the Company to Holder pursuant to any judgments entered in favor of Holder with respect to this Debenture.

 

5.2.
Waiver. At any time before the date of any declaration accelerating the maturity of this Debenture, the holders of
a majority in aggregate principal amount of then-outstanding Debentures may waive any Event of Default hereunder. Such waivers
shall be evidenced by written notice or other document specifying the Event(s) of Default being waived and shall be binding on
all existing or subsequent holders of outstanding Debentures.

 

6. Prepayment.
The Company shall have the right to prepay the then-outstanding principal amount of the Debentures in whole but not in part (unless
as to prepayment in part the Holders of a majority in principal amount of the Debentures consents otherwise), together with any
accrued but unpaid interest thereon. To exercise such right, the Company shall give notice in writing of its election to prepay
the Debentures to the holders of record of the Debentures to be prepaid, addressed to them at their respective addresses appearing
on the books of the Company. In such notice, the Company shall designate a date for the prepayment not less than 30 days following
the date of the notice. Prior to the date of prepayment specified in the notice, a Holder may elect to exercise the Holder Conversion
Right.

 

7. Restrictions
on Transfer.

 

7.1. Restricted
Securities. By acceptance hereof, the Holder understands and agrees that this Debenture and the Common Stock receivable
upon conversion hereof are characterized as “restricted securities” under the federal securities laws inasmuch as
they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable
regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances.
In this connection, the Holder represents that it is familiar with Rule 144 promulgated by the Securities and Exchange Commission,
as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. In addition, the Holder
understands and agrees that this Debenture is subject to the additional restrictions on transfer set forth in the legend appearing
at the top of the first page of this Debenture.

 

    17

     

    

 

7.2. Further
Limitations on Disposition. Without in any way limiting the representations set forth above, the Holder further agrees
not to make any disposition of all or any portion of this Debenture (or of Common Stock issuable upon conversion thereof) except
in compliance with applicable state securities laws and unless and until:

 

(a)
there is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition
is made in accordance with such registration statement;

 

(b)
such disposition is made in accordance with Rule 144 under the Securities Act;

 

(c)
the Holder shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement
of the circumstances surrounding the proposed disposition, and, if requested by the Company, the Holder shall have furnished the
Company with an opinion of counsel, which opinion and counsel shall be reasonably satisfactory to the Company, that such disposition
will not require registration under the Securities Act and will be in compliance with applicable state securities laws; or

 

(d)
if the Holder is Stratos making a disposition of all or any portion of this Debenture to its unitholders, Stratos shall notify
the Company of such proposed date of the disposition and shall have furnished the Company (i) a copy of the form of acknowledgement
that such securities are “restricted securities” under the federal securities laws to be executed by Stratos and its
unitholders and (ii) a representation letter, executed by Stratos and in form and substance reasonably satisfactory to the Company,
to the effect that the disposition is being effected by means of a distribution to Stratos’ unitholders consistent with
the distribution provisions set forth in Article X of that certain Amended and Restated Limited Liability Company Agreement of
Stratos dated effective October 3, 2012 (as amended), for no consideration, in which case no opinion of counsel shall be required.

 

7.3.
Legends. It is understood that each Debenture and each certificate evidencing Common Stock acquired upon conversion
thereof (or evidencing any other securities issued with respect thereto pursuant to any stock split, stock dividend, merger or
other form of reorganization or recapitalization) shall bear the following legend (in addition to any legends which may be required
in the opinion of the Company’s counsel by applicable state or federal laws):

 

[THIS
DEBENTURE / THE SECURITIES REPRESENTED BY THIS CERTIFICATE] HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT
PURPOSES AND MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FILED BY THE COMPANY WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION COVERING SUCH SECURITIES
UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED, EXCEPT AS
SET FORTH IN SECTION 7.2(D) OF THE DEBENTURE.

 

    18

     

    

 

8. Notices.

 

8.1.
Notices to Holder of Debentures. Any notice required by the provisions of this Debenture to be given to the holders
of Debentures shall be in writing and may be delivered by any means (including personal delivery, expedited courier, messenger
service, ordinary mail or electronic mail), but no such notice, request, demand, claim or other communication will be deemed to
have been duly given unless and until it actually is received by the intended recipient.

 

8.2.
Notices to the Company. Whenever any provision of this Debenture requires a notice to be given to the Company by
the holder of any Debenture, the holder of Common Stock obtained upon the conversion of a Debenture or the holder of any other
security of the Company obtained in connection with a recapitalization, merger, dividend or other event affecting a Debenture,
then and in each such case, such notice shall be in writing and may be delivered by any means (including personal delivery, expedited
courier, messenger service, ordinary mail or electronic mail), but no such notice, request, demand, claim or other communication
will be deemed to have been duly given unless and until it actually is received by the Company.

 

No
notice under this Section 8.2 shall be valid unless signed by the holder of the Debenture, Common Stock or other security giving
the notice or in the case of a notice by holders of a specified percent in aggregate principal amount of outstanding Debentures
unless signed by each holder of a Debenture whose Debenture has been counted in constituting the requisite percentage of Debentures
required to give such notice.

 

9. No
Rights as Stockholder. This Debenture, as such, shall not entitle the Holder to any voting rights or other rights as
a stockholder of the Company.

 

10. Headings
and Governing Law. The descriptive headings in this Debenture are inserted for convenience only and do not constitute
a part of this Debenture. The validity, meaning and effect of this Debenture shall be determined in accordance with the laws of
the State of Delaware without giving effect to principles of conflict of laws that would cause the laws of another jurisdiction
to apply.

 

11.
Severability. Whenever possible, each provision hereof shall be interpreted in a manner as to be effective and valid under
applicable law, but if any provision hereof is held to be prohibited by or invalid under applicable law, such provision shall
be ineffective only to the extent of such prohibition or invalidity, without invalidating or otherwise adversely affecting the
remaining provisions hereof. If a court of competent jurisdiction should determine that a provision hereof would be valid or enforceable
if a period of time were extended or shortened or a particular percentage were increased or decreased, then such court may make
such change as shall be necessary to render the provision in question effective and valid under application law.

 

    19

     

    

 

12. Amendment.
With the consent of the holders of a majority in aggregate principal amount of the then-outstanding Debentures, the Company may
amend the Debentures for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions
of, the Debentures; provided, however, that no such amendment shall, without the consent of the holder of each outstanding
Debenture affected thereby:

 

(a)
change: (i) the maturity of the principal of, or any installment of interest on, any Debenture; or (ii) the coin or currency in
which the principal of or interest on any Debenture is payable;

 

(b)
reduce the principal amount thereof or the interest rate thereon;

 

(c)
increase the Conversion Price thereof; or

 

(d)
reduce the percentage in principal amount of the outstanding Debentures the consent of whose holders is required for any amendment
or waiver as provided for in the Debentures.

 

Prompt
written notice that this Debenture has been amended or interpreted in accordance with the terms of this Section shall be given
to each holder of a Debenture. Upon such amendment or interpretation, the Debentures shall be deemed modified in accordance therewith,
such amendment or interpretation shall form a part of this Debenture for all purposes, and every subsequent holder of Debentures
shall be bound thereby.

 

Notwithstanding
anything to the contrary contained herein, each of the Company and the Holder agrees, confirms and acknowledges that (i) the Senior
Lender is an obligee and third-party beneficiary under Section 3 of this Debenture and has the right to enforce such provisions
as if the Senior Lender were an original party hereto and (ii) until the Senior Credit Termination, no amendments, modifications,
supplements, waivers or consents to the subordination provisions in Section 3 in favor of the Senior Lender will be effective
without the consent of the Senior Lender.

 

13.
Remedies. Holder shall have, in addition to the rights and remedies contained in this Debenture, all of the rights and
remedies of a creditor, now or hereafter available at law or in equity. Holder may, at its option, exercise any one or more of
such rights and remedies individually, partially, or in any combination from time to time, including, to the extent applicable,
before the occurrence of an Event of Default. No right, power, or remedy conferred upon Holder shall be exclusive of any other
right, power, or remedy referred to herein or now or hereafter available at law or in equity. In addition to all other amounts
payable upon and Event of Default, the Company shall reimburse Holder for all of its out of pocket expenses, including reasonable
legal fees) incurred in the enforcement of Holder’s rights and remedies in respect of this Debenture.

 

14.
Guarantee. Immediately following consummation of the Transaction, the Company shall cause Computex and each of its subsidiaries
to execute a guaranty of this Debenture substantially in the form attached as Exhibit A hereto.

 

[Remainder
of page intentionally left blank; signature page follows.]

 

    20

     

    

 

IN
WITNESS WHEREOF, AMERICAN VIRTUAL CLOUD TECHNOLOGIES, INC. has duly caused this Debenture to be signed in its name and on
its behalf by its duly authorized officer as of the date first above written.

 

	 	AMERICAN VIRTUAL CLOUD TECHNOLOGIES, INC.
	 	 
	 	By:	 
	 	Name:	Darrell J. Mays
	 	Title:	Chief Executive Officer

 

	Agreed to and accepted as of the date first written above:	 
	 	 
	HOLDER	 
	 	 
		 
	By:	 	 
	Name:	    	 
	Title:	 	 

 

    21

     

    

 

NOTICE
OF CONVERSION

 

(to
be signed upon conversion of the Debenture)

 

TO
AMERICAN VIRTUAL CLOUD TECHNOLOGIES, INC.:

 

The
undersigned, the holder of the foregoing Debenture, hereby surrenders such Debenture for conversion into ______ shares of the
common stock of American Virtual Cloud Technologies, Inc., and requests that the certificates for such shares be issued in the
name of, and delivered to, ________________________________________, whose address is __________________________________________________.

 

Dated:
_____________________

 

	 		 
	 	(signature)	 
	 	 	 
	 		 
	 	(address)	 

 

    22

     

    

 

EXHIBIT
A

 

FORM
OF GUARANTY

 

TO
BE DELIVERED BY COMPUTEX AND SUBSIDIARIES

 

THIS
GUARANTY AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN SECTION
3 OF THE DEBENTURES (AS DEFINED HEREIN) TO THE SENIOR INDEBTEDNESS (AS DEFINED IN THE DEBENTURES), AND EACH HOLDER OF THIS GUARANTY,
BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF SECTIONS 3 AND 12 OF THE DEBENTURES.

 

THIS
GUARANTY (this “Guaranty”), dated as of ______________, 2020, between entities named as guarantors on the
signature pages this Guaranty _____________ (the “Guarantors” and each a “Guarantor”), each
of which Guarantors is a subsidiary of American Virtual Cloud Technologies, Inc., a Delaware corporation (the “Company”).

 

W
I T N E S S E T H

 

WHEREAS,
the Company and has heretofore executed and delivered to the Holders one or more Convertible Debentures dated the date hereof
in an aggregate principal amount of $__________ and may thereafter execute and deliver additional Convertible Debentures in an
additional aggregate principal amount not to exceed $___________ (the “Debentures”);

 

WHEREAS,
Section 14 of the Debentures provides that the Guarantors shall execute and deliver to each Holder a Guaranty pursuant to which
the Guarantors shall unconditionally guarantee all of the Company’s obligations under the Debentures on the terms and conditions
set forth herein (the “Debenture Guarantee”); and

 

WHEREAS,
the Guarantors are authorized to execute and deliver this Guaranty.

 

NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, including the benefits to be received
by the Guarantors from the financing provided by the issuance of the Debentures and the other securities issued contemporaneously
therewith, the receipt of which is hereby acknowledged, each Guarantors and the Company mutually covenant and agree for the equal
and ratable benefit of the Holders of the Debentures as follows:

 

1.
DEFINED TERMS. Capitalized terms used but not defined herein shall have the meanings given to them in the Debentures or
the Purchase Agreement, as applicable.

 

    23

     

    

 

2.
AGREEMENT TO GUARANTEE.

 

(a)
Each Guarantor hereby agrees, jointly and severally with all other Guarantors hereby, guarantees, to each Holder of a Debenture,
irrespective of the validity and enforceability of the Debentures or the obligations of the Company hereunder or thereunder, that:

 

(1)
the principal of, premium, if any, and interest on, the Debentures will be promptly paid in full when due, whether at maturity,
by acceleration, redemption or otherwise, and interest on the overdue principal of and interest on the Debentures, if any, if
lawful, and all other obligations of the Company to the Holders thereunder will be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and

 

(2)
in case of any extension of time of payment or renewal of any Debentures or any of such other obligations, that same will be promptly
paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise.

 

Failing
payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, Guarantors shall be jointly
and severally obligated to pay the same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee
of collection.

 

(b)
The Guarantors hereby agree that their obligations hereunder are unconditional, irrespective of the validity, regularity or enforceability
of the Debentures, the absence of any action to enforce the same, any waiver or consent by any Holder of the Debentures with respect
to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other
circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. Each Guarantor hereby
waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the
Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenant
that this Guarantee will not be discharged except by complete performance of the obligations contained in the Debentures.

 

(c)
If any Holder is required by any court or otherwise to return to the Company, the Guarantors or any custodian, trustee, liquidator
or other similar official acting in relation to either the Company or the Guarantors, any amount paid by either to such Holder,
this Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.

 

(d)
Each Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Guarantor further agrees that, as between the
Guarantors, on the one hand, and the Holders, on the other hand, (1) the maturity of the obligations guaranteed hereby may be
accelerated as provided in the Debentures for the purposes of this Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any such declaration of
acceleration of such obligations, such obligations (whether or not due and payable) will forthwith become due and payable by the
Guarantors for the purpose of this Guarantee. The Guarantors will have the right to seek contribution from any other Guarantor,
or the Company, as the case may be, so long as the exercise of such right does not impair the rights of the Holders under the
Debenture Guarantee.

 

    24

     

    

 

(e)
Each Guarantor, and by its acceptance of Debentures, each Holder, hereby confirms that it is the intention of all such parties
that the Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of bankruptcy law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to
any Guarantee. To effectuate the foregoing intention, the Holders and the Guarantors hereby irrevocably agree that the obligations
of such Guarantor shall be limited to the maximum amount that shall, after giving effect to such maximum amount and all other
contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections
from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations
of such other Guarantor under this Guaranty, result in the obligations of such Guarantor under its Guaranty not constituting a
fraudulent transfer or conveyance.

 

3.
NOTICES. All notices or other communications to each Guarantor shall be given as provided in Section 8.2 of the Debentures.

 

4.
RATIFICATION OF DEBENTURES; GUARANTIES PART OF DEBENTURES. Except as expressly amended hereby, the Debentures are in all
respects ratified and confirmed and all the terms, conditions and provisions thereof (including, without limitation, the terms
and provisions of Section 3 of the Debentures in favor of the Senior Lender as defined therein) shall remain in full force and
effect. This Guaranty shall form a part of the Debentures for all purposes, and every holder of Debentures heretofore or hereafter
authenticated and delivered shall be bound hereby.

 

5.
GOVERNING LAW. THIS GUARANTY AND THE DEBENTURES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, with
the laws of the State of Delaware without giving effect to principles of conflict of laws that would cause the laws of another
jurisdiction to apply. 

 

6.
COUNTERPARTS. The parties may sign any number of copies of this Guaranty. Each signed copy shall be an original, but all
of them together represent the same agreement.

 

7.
EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Guaranty to be duly executed and attested, all as of the date first above
written.

 

Dated:
             , 20

 

	[GUARANTOR]	 
	 	 
	By:	 	 
	Name:	 	 
	Title:	                	 
	 	 

    25

     

    

 

EXHIBIT
B

 

FORM
OF JOINDER

 

THIS
JOINDER to the Convertible Debenture, dated as of __________, 2020 (the “Debenture”), issued by American
Virtual Cloud Technologies, Inc., a Delaware corporation (the “Company”), to _______________ ( “Original
Holder”), is executed and delivered as of the date below by ______________ ( “New Holder”). Capitalized
terms used herein but not otherwise defined shall have the meanings set forth in the Debenture.

 

WHEREAS,
on the date hereof, Original Holder has assigned to New Holder all of the Original Holder’s rights under the Debenture,
and the Debenture requires New Holder, as a transferee of the Debenture, to execute a joinder to the Debenture.

 

NOW,
THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, New Holder hereby agrees as follows:

 

1.
Agreement to be Bound. New Holder hereby (a) acknowledges that New Holder has received and reviewed a complete copy of
the Debenture and (b) agrees that upon execution of this Joinder, New Holder shall be fully bound by, and subject to, all of the
covenants, terms and conditions of the Debenture applicable to the Holder thereof (including, without limitation, the provisions
of Sections 3 and 12 thereof), as though an original party thereto.

 

2.
Successors and Assigns. Except as otherwise provided herein, this Joinder shall bind and inure to the benefit of and be
enforceable by the Company and its successors, heirs and assigns.

 

3.
Headings and Governing Law. The descriptive headings in this Joinder are inserted for convenience only and do not
constitute a part of this Joinder. The validity, meaning and effect of this Joinder shall be determined in accordance with the
laws of the State of Delaware without giving effect to principles of conflict of laws that would cause the laws of another jurisdiction
to apply.

 

IN
WITNESS WHEREOF, the undersigned has executed this Joinder as of the date set forth below.

 

		 
	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 
	Date:	 	 

 

 

 

26

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